One thing I dont understand is people claiming there will be a 40% drop in house prices.
A house of 25 squares on a turn key price costs about $230k to build, or there abouts. This price in itself cant really drop, as I dont see there being any massive decrease in building materials.
So if a block of land in the Outer Western Suburbs of Sydney is worth approximatley $250k, and the house is worth $225k to build, then the total value is worth $475k.
This 40% price reduction is a furphy, because in order to do that then the land would have to go from $250k down to $60k. Harldy likely.
