Indeed this is an interesting discussion. I have no idea what is going to happen, however i certainly agree with ToDo's post that there is a complete lack of land to be released in our capital cities (where 90% of the population lives, and wants to live).... and that interest rates are going to stay lowish for a little while.... and that we are not going to see a "bubble" due to the resounding lack of land in the capital cities
Whether we see some kind of govt intervention that improves or speeds up the urban "in-fill" (increasing housing density)... well that is yet to be seen.
They can re-zone to their hearts content - but (as grossreal has pointed out in other threads) unless developers can get their hands on cheap enough credit, or ANY credit, then there just isnt any ability for developers to develop.
I was listening to ABC 702 this morning, and there was a developer they were talking to who had an interesting idea. He suggested that instead of govts just permitting the re-zoning of land, allowing the individual holder of the land to profit from that re-zoning..... that govts should BUY OUT that land at current value, then re-zone it, and then make it available to developers.... so that the profits of the re-zoning are taken by the govt which can then be put into improving/building the supporting infrastructure.
This means that developers would potentially not have to fork out for such massive contributions/costs/taxes on their developments, and would be able to develop at a much more affordable level with a more affordable end product.
It sounds like a good idea in theory...... but as Homer Simpson so succinctly put it; "in theory, communism works".