As someone who, like you, is trying to figure out the right thing to do in Melbourne, it's hard to say isn't it. On the one hand things seem so ridiculous in terms of debt. On the other hand we have strong population growth and demand here it seems. Although, I have no idea what our growing population is doing for jobs.

Because, things are very centralized here, the options for buying are getting further and further out and the public transport systems doesn't look like it's going to be upgraded to match any time soon.

Inner city apartments are currently pretty small and expensive too, which hopefully changes with some more supply.

Wish I had a crystal ball on this one. All that said, Melbourne still rocks :)