Economists Lindsay David and Philip Soos of LF Economics are wrong on Melbourne. In their submission to the upcoming parliamentary inquiry into home ownership, the two economist claim Australia is currently in the “largest bubble on record” based on data that shows an oversupply of housing, especially apartments, in some areas of Melbourne.

But Joanne Royston, Director of hockingstuart Williamstown, says Melbourne's market is very segmented and some areas, such as Williamstown, are tightly held. “The Melbourne housing market is particularly patchy and every suburb is experiencing different levels of supply and demand," says Royston. "It’s difficult to apply generalisations to the entire market”

Royston says you can't claim that an oversupply in new apartments in one neighbourhood means prices are artificially inflated in other suburbs. “This segmentation means that an established suburb like Williamstown is actually difficult for buyers to break into. It has been tightly held for a number of years to be honest, so prices have been consistently high due to a shortage of stock."

South Williamstown is a prime example of this, she says. "It’s in a school zone, has double fronted period homes and is close to the esplanade so will always be an area that experiences high demand from families. That’s why our office has experienced a clearance rate of 100 percent over the last couple of months.”