My 2c worth.

Discounting the cynical view that we have many conflicted property agents in our midst, I think there are a couple of reasons we are seeing the big divide between property bulls and property bears.

1. Different types of investors. Some investors buy on momentum and some on fundamentals. And different markets reward different investors behaviour. The fundamental investor would have bought from 2002 thru 2006, and the momentum investor would hv bought in 2007 and 2009. In the last cycle, the momentum investor would have done quite well for themselves. But the important thing for the sophisticated investor to note is when to change his investment style when it used to work so well.

2. Different levels of experience. All investors know how to buy and how to sell at a profit. But only the experienced investor knows the value of not buying when things are overpriced and the value of when to cut your losses and get out. The inexperienced investor will choose to believe that what has made them successful in the past will continue to apply in the future, and will ignore all evidence to the contrary ie the head in the sand approach.

The above is a bridge to far to cross in an anonymous forum, and I wouldn't waste my time convincing either the bulls or the bears of their fallacies.