I was in Sydney during the Olympics and let me tell you prices will not drop they will just plateau for a couple of years. All the difference will be is that the increases in rent will not be as extreme as it has for the past year and a half.

In terms of compounds being knocked down, you will find that more and more within the city area will be knocked down eventually and apartments will be built as the landlords can get more money from apartments or even offices than compounds.