Here in Sydney house repossession are at an all time high. It is a good time to be a solicitor in Sydney. Although that is the case there are 30,000 people needing new houses here. There is no space in the city to build new houses. Everyone wants to live close to city to avoid traffic etc. Eastern suburbs are likely to hold their house prices.
Western suburbs in Sydney are getting hit at a higher rate of repossession. Not only people have to deal with higher interest rates, they have to put up with high cost to get to city to work etc.
So I think with housing down turn, outer suburbs will get affected most.