are australian properties overpriced?, page-2

IT is for the following reason that property in australia are at this level
1. government limit supply with red tape
2. developers will never build too much at once as this will lead to prices falling and this is not in their interest.
3. Governments base revenue on the high prices including land tax ,rates,and will do stupid things such FHB stupidity.
4.Parents helping their kids with large deposit
and gaurantor.
5.Banks making bigger profits with the bigger loans
which are now backed with bigger deposits or parent garantors.

In the end prices will correct when unemployment begins to rise. The above reason will maitain the bottom end of the market unless people begin to loss their jobs then it all bets off and a correction that is needed will occur.