Pension changes driving some boomers to nest egg in property which drove up prices
Active destruction of public housing pushing more and more people into private housing which drove up prices
Tax incentives encouraging property speculation which drove up prices
Allowance of foreign purchase which encouraged landbanking and laundering and pushed up prices
New builds failing to keep pace with increase in population limiting availability and pushing up prices
Volume builders land squatting and releasing less than required to maintain artificial scarcity and push up prices
Failure to decentralise employment hubs coupled with failure to increase density pushing more people into the same area, causing scarcity and driving up prices
Add one more. Ridiculous building standards pushing building cost over the roof. Even if land is free, new house is way to expensive for many to afford.
I’m sure there are other things that contribute, but it seems pretty clear the problem is not enough houses are available for people to live in which is a policy problem, not an organised crime problem.
I thought it was more a case of nobody (except those who don’t own a house) wanting prices to fall because so many people have their wealth invested in property. Even if it is a money laundering issue, no government will do anything that results in prices falling.
If you’re debating/interviewing someone in a position of power about housing policy, the first question you should ask is “Do you want house prices and rents to fall?”
Maybe follow up with, “And if you agree they need to fall, by roughly what percentage do you think they should fall over the next 12 months?”
Most politicians and property industry spokespeople will dodge the question, because at the end of the day they don’t actually want prices to fall.
If they won’t give you a straightforward ‘yes i want them to fall’ answer, any subsequent arguments/debates about HOW to improve ‘affordability’ might not be worth having with them, because those kinds of people will never support any policies that would put significant downward pressure on property values.
Former Councillor Jonathan Sriranganathan, in a Facebook post of 30 June, 2023.
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