littletee - thanks for your contribution. It’s good to see that you can have a debate without getting emotional. Do you feel that typing in upper case helps you get your point across?
My point is this - you have a much more competitive newly constructed home buyer market because of the sympathetic policy settings of the Vic Government – as discussed in my point above. Having a strong newly constructed market keeps considerable downward pressure on the established housing market. Meaning you pay much less for housing in Melbourne than you would in Sydney regardless of stamp duty concessions.
This is one of the reasons why the median monthly loan repayments are 38% higher in Sydney than they are in Melbourne but median household incomes only 7% higher.
I’m by no means advocating the NSW model, but I think you need some perspective into the cost structure of the development process and role of market forces in the newly constructed housing market on established house prices.
