In the end, no one has a crystal ball. I still remember people berating others during the SARS crisis for buying property then, saying that our jobs were on the line, why are people even considering spending such astronomical sums in a potentially dead market?
No doubt that this financial crisis is going to hit our pockets in a big way. However, one must not lose sight of the big picture, especially if you're planning to stay in HK for the long term. I know one who bought a flat back in 97, stayed in negative asset until late last year. But he's doing just as well as everyone, because he kept on going instead of sulking about how much he lost on his original flat. I think he owns a few flats in HK now, among other places.
Frogman and Volarecantare has brought up a few good points for either side of the argument, but I don't think anyone has a specific answer to anything, just opinions. In the end, the most important thing is to take your time and assess your situation. It's good to be cautious, but then, the risk of having nothing at retirement by being cautious is almost as high as being risque.