developers bonanza, page-25

I'm not that familiar with Perth. But on the East Coast, certainly in Sydney and Brisbane and to a lesser extent, Newcastle, there is very little land close to the CBD's that is suitable for detached housing development. The new house and land packages on the outskirts consist of 400m-500m blocks that are comparatively expensive too.

So buyers tend to either purchase units, townhouses or existing homes closer to the centre of the cities.

Even if the new house and land packages on the outskirts were markedly cheaper, I doubt it would encourage any more buyers.

Thats why I always find it amusing when people argue that ''Australia has a low population density and there is plenty of land.''

Such people should stop studying stats and charts and spend some time driving around in their car to understand all the pieces of the puzzle.

As I am saying, Australia is fast adopting the European model. That is, only the wealthy will end up living in detached housing close the CBD's.