Deregulation is inconsequential at this point and real estate values have correlation with foreign exchange rates. Supply in RE alludes to the property you want to purchase or sell. As a result, currency is in demand because of EMH in due to supply/demand. RE is simply one of the assets tied to availability of real loanable funds. Availability of real loanable funds. Fx rate. Cost of goods. The reason real estate prices are declining is because there is a decline in availability of real loanable funds. A decline in loanable funds is a result of foreign exchange rate decrease. The market is responding to an inevitable future FX decline.
a pretty good and logical analysis, but it depends on the country as well. In developing countries, land is a very rare asset, especially in central places. even though the value of money is drastically reduced, or inflation, land stays the same or even goes up. The price of land depends not only on the real funds that can be lent, it also depends on the mentality of the owners of the plots. What you say is only relevant for countries with lots of banks that own a lot of land.