Last week during a televised interview, the governor of the RBA (Philip Lowe) got asked why AUS house prices are disproportionately high compared to world standards and he gave 3 reasons in the following order:
(1) Historically the population has decided to congregate around large cities (predominantly on the east coast). The population is continuing to do this.
(2) For a very long time, successive governments haven't invested enough in transport.
(3) Real Estate is lightly taxed in aus.
It was interesting that tax only came in at number 3. (This is coming from the leading economist in AUS)
