"Price is a reflection of the Law of Supply and Demand" ...is a simple philosophy of Economics.
-an 'over-balance' of Supply tends to DECREASE Price,
-an 'over-balance' of Demand tends to INCREASE Price.
In recent years, Australians have been wondering why home prices are 'sky-rocketing' out of the reach of the average buyer.
While reading the following... please remember that an 'over-balance' of demand INCREASES PRICES.
Amongst some other influences, here are several 'government-orchestrated' factors which have artificially increased demand in the housing market, over the past decade:
- A dramatic increase in the official IMMIGRATION RATE from a previous average of about 70,000 per year to between 200,000 & over 300,00 per year.
- A dramatic increase in sales of residential housing to 'NON-RESIDENT OVERSEAS' buyers. (Surprisingly, the Foreign Investment Review Board claims that this concept should maintain "the affordability of housing for the benefit of Australian residents."! Does this make ANY logical sense?)
- The substantial First Home Buyer Grant (as well as the associated "Bonus" & "Boost" contributions) has also artificially increased demand, and home prices.
As a result of 'wacky policies & planning':
- infrastructure is struggling to cope,
- public transport is over-stressed,
- traffic is clogging the arteries of our cities,
- rezoning is infiltrating our 'green wedges' and open spaces, and
- high-density developments are destroying the character and livability of our suburbs.
