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Ctindale

One link does not make the housing supply shortage a myth.

From another link. http://www.businessspectator.com.au/bs.nsf/Article/RBA-House-of-Reps-pd20090817-UYVL8?OpenDocument

"The media appears to be – perhaps understandably – confusing two concepts: the prevailing price of Australia’s secondary housing stock and the marginal cost of producing new housing supply, which, as I documented way back in 2003, has been artificially inflated by austere zoning restrictions, slow approval processes, and a range of taxes, charges and infrastructure costs that government imposes on developers. Here Stevens opined:

“I am not an expert in the fine detail of zoning laws…but I think it is demonstrably true that, certainly in [Sydney], the price of a marginal block of land is quite high—on some figures, a couple of hundred thousand dollars a block. There are levies and so on that contribute to that…We ought [therefore] be prepared to examine the question of whether we have managed to make the supply price of the marginal dwelling higher than it really needs to be. Those are important things.”

I should for completeness add that the RBA has been a late convert to acknowledging Australia’s supply-side problems."




Oz resi property is over valued and a poor investment, but it won't crash like in the US and UK due to supply constraints.