Land release and zoning restrictions play a huge part in house...

First 12 Last

Share
Profile

Follow
Zerodark

2,186 Posts.

27/11/14

22:58

Post #: 14368333
Share

Originally posted by waldo1 ↑

She and her report are simply pathetic as it does not give "the" reason why house prices in Australia are crazy.

Instead it seeks to cop out via a variety of factors such as land supply, red tape, zoning etc.

We all know that house price valuation is not a science (real estate agents are far too dumb to do any meaningful NPV or DCF analysis).

Instead house prices are simply determined by what the next person is willing to pay for a house.

When you introduce cashed up foreign buyers (say from Communist China) and they are continually paying a premium over what the current market price is (as they fear that they will be executed in the current purge in China) prices will rise independent of current zoning, or red tape impediments.

What a joke!!

Not only can Australia not build a submarine it seems that it also needs Asians to build residential apartments as well.

Thank god for the FTA Tony Abott - it allows Chinese company's to buy Australian assets up to $1B before FIRB, this means China can buy huge amounts of Australian farmland and mines and THEN EXPORT back to China.

A future of serfdom, not surfing in Oz, me thinks.

Expand

Land release and zoning restrictions play a huge part in house prices. Go somewhere in the US where there is little land restriction and see what happened to property prices during the housing bubble. They were a lot more stable than where there was more restrictive zoning and limited land release. Those were the parts that had the worst bubbles.
1 Upvote

Reply