Some more research to back up what I've been saying for years. Australia's policy of high skilled immigration leads to higher house prices. When there is a shortage, the available properties flow to the wealthiest people.
And... Steve Keen admits there is a shortage. Sorry bears, your idol has fallen. He has capitulated on the shortage issue, after previously capitulating on the possibility of a 40% crash. Who is the bear idol now?
Full article: http://www.news.com.au/money/property/weal...0-1225820461473
And... Steve Keen admits there is a shortage. Sorry bears, your idol has fallen. He has capitulated on the shortage issue, after previously capitulating on the possibility of a 40% crash. Who is the bear idol now?
Full article: http://www.news.com.au/money/property/weal...0-1225820461473
Wealthy migrants pricing locals out of Sydney property market
* By Nick Gardner
* From: The Sunday Telegraph
* January 17, 2010 12:00AM
AUSTRALIAN families are being priced out of the property market by record numbers of highly paid skilled workers arriving from overseas.
Research by The Sunday Telegraph has revealed for the first time how skilled immigrants - predominantly from Britain, India and China - are forcing house prices to some of the highest levels in the world when compared with average incomes.
...
And because skilled migrants command above-average salaries, they pay above-average prices. As a result, a relatively small number of highly paid buyers can have a disproportionate effect on house prices.
Proof of this theory came when Mr Edwards plotted a chart of the increase in skilled migration alongside national house-price growth.
"It correlates at a rate of 98 per cent, which is almost unheard of," he said.
"It even has an 18-month time lag, which is obviously the period between immigrants arriving in Australia, getting themselves settled and when they first purchase a property."
. . . . .
"The fact there is a shortage of property doesn't necessarily mean prices have to keep rising," Steve Keen, professor of economics at the University of NSW, said.
. . . . .
"Sydney is set to be the best-performing city in the country this year