Who's to Blame for Australia's Expensive Property?

Discussion in 'Property Market Economics' started by Guest, 27th Jul, 2015.

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  1. AndrewTDP

    AndrewTDP Well-Known Member

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    Undersupply and cost of providing new housing has to be in the mix for this discussion.
     
    AndrewTDP, 30th Jul, 2015
    #81
    Guest likes this.
  2. Guest

    Guest Guest

    Couldn't agree more @AndrewTDP (as alluded to in my original post), but I know far more about government policy affecting demand, compared with that which affects supply. Do you have any thoughts on ways government could change policy to improve costs and make it easier for developers to bring new supply to market?

    There seems to be a huge surge in apartment completions at the moment, but it doesn't even seem like stock that most Australians are interested in owning... are we seeing a shift in the way people WANT to live or as a necessity due to increasing prices?
     
    Guest, 30th Jul, 2015
    #82
  3. Perthguy

    Perthguy Well-Known Member

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    Yes, but it would have a cost. 2 examples. The government could pick up the tab for the cost of providing infrastructure (e.g. water, sewer, power). This would make it cheaper and easier for developers to develop and release land. The cost is that infrastructure is expensive, so the government would have less money to provide other government services. The other would be to drop environmental regulation. The result would be quicker, easier and cheaper land. The cost would be to the environment. I think it's about balance.
     
    Last edited by a moderator: 10th Oct, 2021
    Perthguy, 31st Jul, 2015
    #83
  4. JDP1

    JDP1 Well-Known Member

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    Probably a bit of both.
     
    Last edited by a moderator: 10th Oct, 2021
    JDP1, 31st Jul, 2015
    #84
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Two words to address this post. Market forces.
     
    Paul@PAS, 31st Jul, 2015
    #85
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    two new words from property chat dictionary

    APRA hensive :)

    I think one big issue that we arent seeing much discussion over is that aside from Sydney and parts of Melbourne, relative affordability is ok.

    Just like we cant all drive Lexus, we cant all live in a Bondi House ..........

    I dont see too much stress in US forums about affordability in Laguna beach when people can live in Toledo ( hi Engelo Rumora )

    Seriously though, if you go back to the late 70s through to the mid 90s REAL wages growth was HUGE.... and its only really abated post GFC.

    Pointless trying to provide affordable Lexus...................

    ta
    rolf
     
    Rolf Latham, 31st Jul, 2015
    #86
    Natedog and Toon like this.
  7. Guest

    Guest Guest

    Yeah, no. It's not that simple.
     
    Guest, 31st Jul, 2015
    #87
  8. THX

    THX Well-Known Member

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    Ironic if APRA pops the ''bubble'' they are trying to prevent from popping through their actions.
     
    THX, 3rd Aug, 2015
    #88
  9. Natedog

    Natedog Well-Known Member

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    It is for simple minded folk like me.

    No point in laying blame.

    The market "is what it is" until it isn't.....
     
    Last edited by a moderator: 10th Oct, 2021
    Natedog, 5th Aug, 2015
    #89
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