Why are units in blue chip areas more vulnerable?

The Melbourne postcodes vulnerable to further significant price falls

can anyone explain, why units in a blue chip area would be more vulnerable than anything else?

apartments, I understand,
docklands apartments, I understand,
but units in Toorak, I cant understand

to me I would have thought, blue chip, moderate land component, well below the median ,would be one of the safest investments for Resi

 

How many and how do they val....

It wont matter where it is if there is excess supply....

 

Oversupply, too much of same product on market..... so how low can it ho

The period/art deco units in smaller blocks not as volnerable, as stated in the link because these are rare

 

But units and apartments are completely different things in Victoria. Units at Melbourne (and also Adelaide) are equivalent to villas in Sydney so oversupply should not be a major factor.

The only reason I can see is that the unit prices overshot during the peak and now with prices dropping around it people may ended up buying houses further out than units in the blue-chip suburbs.

 

Maybe everyone overpaid for units in some areas just based on the name of the suburb .
For families or couples wanting to start a family, a house is always going to be more desirable and what's really driving the market at the moment.
Investors, upgraders or FHBs.

 

Depends upon the unit block size and appeal it has!!..

Being Toorak doesn't mean they aren't vulnerable..

 

Of course. The fundamentals stilll apply.
Just can't see the logic as to why too too rak would be the highest risk category
It's just as blue chip as you can get

In my mind if units in Toorak were struggling, then units in other suburbs would be collapsing

 

Harry Dents explanation is that these areas experienced the most growth so they experience the most falls.

According to the article, St Kilda houses are down 27%??? How has that not been all over the news.

 

If everyone has had to take a haircut when it comes down to the amount they can borrow then they just move down a level to a slightly cheaper suburb.
The most expensive suburbs are a bit exposed .
Houses in that area might ? be less affected because the owners are generally very very wealthy, whilst the apartment owners are a lot further down the list and require bank finance.
Very wealthy people that want to live in large homes with indoor pools ,tennis courts etc will also just live in other areas ,and not necessary in units/apartment and terraced houses.