Idea about Melbourne prices



From: Andrew Scott

A simple theory of mine that I'd like to test with people..

It seems that Melbourne, in particular, has had huge increases in property sale prices in the last 6-12 months. Based on what I read in the paper, other capital cities haven't seen the same phenomenon to the extent that Melbourne has. (Is this true?)

In that case, why should Melbourne be special? The FHOG applies everywhere. The low interest rates apply everywhere. The baby-boomers moving their investment money around could apply equally everywhere as well.

Just an idea.. there have been advertising blitzes in Melbourne regarding property investing. Two-three major builders advertise on morning radio, prime time, about their special building deals (eg. doubling the FHOG to $28k). Three-five property investment "advisers" / marketeers have also been advertising widely and prominantly. Obviously this level of advertising is capable of creating demand (even if it isn't demand for their services, but just putting the idea into people's heads that they should be investing in property). Perhaps this has a hand in the skyrocketing prices?

Does this idea pan out? Are there similar advertising blitzes in other capital cities?

Andrew Scott
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Reply: 1
From: Robert Forward

Don't worry Andrew, Melbourne isn't the only place that this is occurring. The same is happening in Sydney and Brisbane. Not to sure about Adelaide or Perth though.

There are not only adds on the radio, but also in the papers and tv.

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Reply: 1.1
From: Paul Zagoridis

Plus all the people who were in the stockmarket and now scared off are looking for other investments.

Residential real estate has historically boomed in the two years following stockmarket corrections.

Paul Zag
Oz Film Biz is at
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Reply: 1.1.1
From: Eric Snow

But there hasn't been a stockmarket correction- yet.

I am God.

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From: Sergey Golovin

In regards to Stock market - Telco’s and Computer (Technology) bubble busted and couple of years ago Asian crises as well.

I think it was about three month back (?) - Western Australia officially declared in recession.

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From: Chris Legg

Where have you been God? If you dont think we are in the start of a correction on sharemarkets ask the poor souls who bought
the Telstra 2 float.Check most of our Blue Chips they are down 20%

Our market is being held up by News Corp and the banks and has basically been going sideways since last November.

The All Ords is down nearly 6% from its all
time high at the end of March.

The Mums and Dads dont realise it yet but watch out when they do !!!

Activity is a substitute for achievement
look at politicians.
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