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land costs

Prices rise to absorb increases in income - Article by John Kosy

Here is a story that explains this concept. Thanks to our contributor, Matthew Mitchell, for alerting us to this brilliantly simple analysis of our current problem, originally published as a comment here. It is a skilled, yet easy to understand, critique of economic theory that underpins todays political policy and the similar adverse impact of globalisation on places as far away from each other as Bangladesh and Australia.

Victoria - land sales slump but prices reach new heights


Due to greed, favouritism towards developers and population growth, it sounds like land prices may have actually peaked. The “chronic shortages of land” is being blamed, not boosted demand due to population growth. There are limits to growth, including prices. Once prices peak, they will find sales go downwards. It just becomes unaffordable for the average family to buy.

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