property bubble confirmed -finally, page-13

actually billy - there could be a bubble without immigration. The Economist points to that as one of the factors but we all know there are many more. FHBG, plunging stockmarkets, low interest rates, 'safe haven' myth - all examples of others.

I have to say you are plain wrong when you say supply is fixed. Its inelastic, but not overly so. the number of investor owners guarantees this compared to say Japan where it is a lot more inelastic but still not fixed.
The more inelastic is supply the greater the booms and busts are. PLease dont deny this unless you want to refute hundreds of years of economic theory.

Another place you could look at is Holland. It has population almost the size of australia but on land half the size of Tasmania. They have to reclaim their land from the sea when they want more. So you can imagine their arguements for not being in a bubble as a little more plausible.

So Billy are you saying the Economist is wrong about prices falling? I dont know how anyone can say prices will plateau. Have a look at the charts provided.
In all times in history whenever house prices v average income rose by more than 30% or got above 120% there was ALWAYS a major correction.

Surely if you're going to say 'its different this time' or in australia ,or whatever, you would need to come with an incredible reason for this more than just the small increase in immigration compared to the rise in prices.

Funny how immigration is one of the main reasons given by the property bubble economies. When most have had fairly high immigration throughout the past centuries without causing a property boom that didnt crash.