I'd call this time a "movement" period in terms of pricing. Being not as old as certain SMS
I only experienced twice the downturn of rental here, 97-98 and the 2003 periods, but I agree with him. Some owners are crazy enough to let their apartments unrented for months for a mere 2-300 dollars difference in ideas, while market keeps going down.
I am in the process of moving now - I live in the western part of this island. Looking for at least 3+1 and offers are mixed. My current landlord asked me for 50% increase so I said no thank you. Went to check this site, got an ad that says 2.5K, I called, given agent name, and agent said not 2.5 but 3K. I said ok, but no thanks (though I don't appreaciate the misleading ad she put in this site). Another one in the newspaper, asking 3K, so I politely bid for 2.3K - and lo and behold the owner agent came back with an offer of 2.4K and we closed the deal. The apartment apparently was rented out for 3.1K but was cut short 1 month ago because the expat occupants went back home due to the situation in Asia - diplomatic clause at work.
So I think it's an unstable market and whether the owner feel upbeat, have money, or desperate. You can get a good deal at this moment if you compare with 6 months ago. However if you compare with 2003-4, it's still way expensive now.