Property doubles every 14 years, not every 7

[kum yin lau]

Hi, Toony, the reason for me is that many properties are selling at or below replacement value. Until the demand for housing drops, there is no reason for house prices to fall. Or until the cost to replace them changes eg it becomes cheaper to build a replacement house, there is no reason for existing houses to become cheaper.

KY

 

[BV]

Hi, Toony, the reason for me is that many properties are selling at or below replacement value. Until the demand for housing drops, there is no reason for house prices to fall. Or until the cost to replace them changes eg it becomes cheaper to build a replacement house, there is no reason for existing houses to become cheaper.

KY

unless the gov releases land and sells the blocks for half the current price.....

 

[toony]

unless the gov releases land and sells the blocks for half the current price.....

Thats highly unlikely. Political suicide to the government that proposes that.

Governments wont do that as its hard enough to finance Health and Education without trying to find the money to build the infrastructure required by releasing more land.

 

[craigb]

The gov usally sells the land to the heighest bidder and its that consortium that predicts the values ,Based on previous sales , selling land at half value would be stupid.