Found this interesting comment on John Gian's web site and so it is quotation or a cut and paste,
January 23, 2014 at 11:19 am
The Housing Market is just like the banking sector- too big to fail and put simply, the government will always protect it as to not do so is political suicide. They have 5 levers they can pull to ensure the housing prices will always trickle upwards in a consistent manner 1. Interest rates, and as a result – Forex rates 2. Supply through planning 3. Grants and Stimulus to buyers 4. Accelerate Population growth through immigration And the failsafe lever of last resort 5. Increase foreign investment in domestic housing.
In the end it’s the Last two which will always protect the Australian Housing Market. There are millions of Indian, Chinese, Malay and Indonesian US dollar millionaires queuing to drop anchor in our cities. They can afford to buy prime real estate as both an option on thier future residency and a relatively secure store of wealth, all that’s needed to access this demand is the stroke of a politicians pen. It doesn’t even need new legislation! I’m told that in China, there are more Millionaires than there are Australians in Australia! If you were seriously wealthy, what and where would you buy for your elderly parents or your kids? “Follow the the bouncing ball” Health Care, Public Transport, Schools and Universities
