There was also perhaps, in some instances, too much construction of the wrong sort of dwelling. Some people involved in or exposed to the property sector also had too much leverage. When credit conditions tightened and there were not enough buyers, prices fell and construction slowed down significantly.
After growing at an annual average pace of 12 per cent between 2002 and the peak in late 2009, dwelling prices in Brisbane fell and remain around 5 per cent below their peak. About a third fewer dwellings were constructed in the year to September 2013, compared with the peak in 2008.