"Its called micro-analysis. Thats what investors do."
I think that property investors here know very, very well the microeconomics of property. They really do, and they prove it time and time again.
However, what scares me is that they seem to ignore macroeconomics.
Microeconomics have been driving the prices up. But macroeconimcs will bring them back down. And never the twain shall meet.
Unless we take notice of macroeconomics, then hoping for endless capital gains in property is just a ponzi scheme that is bound to fail at some stage.
As for the micro picture. On ABC News Radio this morning: rents have flattened.
- pug
ps: GPPERTH supply and demand change for innumerable reasons. As they change; prices change. So I could accept that you are right with: the only thing that matters is supply and demand. But neither of these are fixed, and to change they don't even have involve changes in population or building volumes. Demand/supply is a function of human psychology.
