SoHO New York vs Melbourne. Do you think in the absence of artificial impediments the rent would be x2 in Melb? Realistically no.
Land monopoly hurts the general populace and economy. Economic rents place a toll on enterprise and production. It's a shame our govts. are stupid or gutless (prob both) and haven't insituted a comprehensive land tax to capture the leakage from land bankers who contribute nothing to the general societal welfare or the process which sees their land rise in value. All the while the land isn't being used for residental purposes or for the purpose of increasing production (economic growth).
Land monopoly and the resulting price rises and rents mean higher costs of production, which reduces ability to compete and ultimately leads to lower wages.
