I keep an eye on a couple of regions. Busselton is one, with a view to future retirement. Unless I want to go further out, a decent block will cost $200~250k, depending on location. To put a 4x2 on that would easily run past $200k just for the basic house. (And that's being conservative.) Yet I can buy a newish modern 4x2 (built in the early 00's) in good nick, nice gardens, on a desirable block, for $350~400k. (Old homes are closer to the $300k mark) Does this indicates that the existing home is great buying? Or does the folly of people lining up to build overpriced new homes, portend future oversupply problems?