"The big question is where does unemployment go, that's when you get the forced selling, " said Ivan Colhoun, head of Australian economics and property research at ANZ, who finds solace in Australia's still-low 5.1% unemployment rate.

WSJ: Australian Property, Long an Outlier, Joins Decline

Xinhua news ageny reported that the government will be reluctant to tighten further given that the faltering global economy could impact on growth in China, said Liu Ligang, director of economic research department of ANZ Greater China.

FORBES: China Inflation Hits New 3-Year High; Will Govt Raise Rates?