DonLochnagar, are you sure it is priced wrong? Or is it that you are possibly looking to purchase and cannot afford more than €60.000 and the property you may be interested in will not reduce the price?
I totally agree with Justin and it really does depend, here on the Costa del Sol depending on the area prices change and you can expect no less, i would pay much less for a property in the centre of Fuengirola then for the same property in the centre of Puerto Banus.
I would pay more for a frontline beach property then for one on the outskirts!
Prices were driven up way to high, this does not mean that they are now worth nothing!
Before the whole price rise of property 2 bed apartments in most areas were worh €100.000 to €150.000 and 10 years later i can guarantee you that some of them are still worth this amount.
A complete other story is people in desperate situations or trying to get out of here and lowering them just to cover their losses, this is why some of them are priced so cheap and this is also making things hard for people trying to sell at the right price!