world markets about to collapse, page-34

re: property about to collapse (not the markets) Hi Copydog,

One factor to keep in mind is height restrictions. Other than in or near the CBD, many councils are now introducing height restrictions (and a plethora of other planning restrictions) which go to the ability to build multiple units /flats on sites which previously housed a single residence.

In Melbourne, most shopping strips carry with them 2-3 storey height restrictions, subject to blending in with the surrounding environs.

Away from the shopping strips, the height restrictions broadly drop to 2 stories.

Beyond this, councils are also imposing 2 other types of restrictions:
1)
plot ratios (ie: dwelling size to land size); and
2)
positioning restrictions (ie: a house has to be set a certain distance back from the neighbour's fenceline, etc).

These restrictions are starting to come into play due to a backlash resulting from the condensed property developments of the last 7+ years.

Whilst these restrictions are not so much in vogue in the inner urban areas, they are in play the further out from the CBD that you get. For example, here in Melbourne, they are in play down towards Clayton, The Basin, and heading towards Knox and Ferntree Gully.

As for land value, is it really the case that land prices have gone up so much, or has this been more a by-product of rising replacement costs for properties (previously built and newly built)?