I've been reading about the likely correction of Melbourne and Sydney in the next few years. I know there's a bit of speculation here, but excuse my ignorance, I'm trying to understand how economics and the property market works. If interest rates go up and APRA tightens lending, wouldn't this affect the Australian property market as a whole? I can't see the median house price in Brisbane catching up to Melbourne just because of that. I know this is simplifying things drastically. This is where my assumptions come in. People unable to service debt begin to sell off. Reduction in value across the board. Borrowing capacity is limited, only people in a strong position can buy in mid/high end market. Lower priced suburbs/cities become more desirable and median in these areas are pushed up. Reports from GFC and how it impacted Sydney. Perhaps one of you savvy investors that has been through a few downturns could educate me on how the market was affected?