Quote:
Originally Posted by blueoval
Supply and demand will set the values, plus it all depends on your own expectations.
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Sure, but when the market is fiddled with so as to limit supply than it otherwise would be, do you still think it's fair to explain it away as supply and demand?
Overseas investors have bought up property in Australia for no other reason than to park their money here as so far it's been a stable market. Those properties don't get rented out, lived in, nothing, just sat there locked up empty, doing nothing but reducing the supply and keeping the value of surrounding properties inflated.
If we're going to fall back on 'supply and demand' then surely it should be a closed system? No overseas investment, australian jobs and australian money have to pay for australian housing. Then the "supply and demand" would naturally find an equilibrium as you describe but instead we have other countries finding their way into the mix.
Can you honestly sit back and still stand by "supply and demand" when the market is fiddled with like that?