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Australia needs to build 186,000 new houses a year: HIA

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Your Investment Property | 15 Oct 2014, 04:46 PM Agree 0
A new report has revealed that the largest policy challenge faced by the Australian property market will be ensuring a sufficient supply of new dwellings to house our growing and ageing population
  • Jeremy Sheppard | 16 Oct 2014, 01:52 PM Agree 0
    If there is a considerable shortage in supply of property, prices will go up. If prices go up considerably, developers' eyes will light up with dollar signs as they see more profitable opportunities. In fact, mum and dad investors might even jump into development. Soon there will be enough stock to satisfy demand. If however, they go too far, which is inevitably the case, there will be an oversupply and price growth will be subdued or even fall.

    The government doesn't need to do anything. The law of supply and demand will naturally cause more property to be built when there is a clear shortage and vice-verse. Save your breath, no need to ask the government to go meddle in it and stuff things up. They've got enough other things to worry about. Tax payers don't want another expensive committee trying to solve phantom problems.
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