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Yep, runaway house prices... just like the rest of the top 10 cities. The reason why the house prices are so expensive in these places is because they are good
by vacri 10y ago
Yep, runaway house prices... just like the rest of the top 10 cities.
The reason why the house prices are so expensive in these places is because they are good places to live. Good old supply-and-demand at work.
- collyw 10y agoArtificial restrictions on supply, artificially low interest rates (supply of credit) to keep the bubble inflated. Free markets at work. (I am not sure if this is actually the case in Melborne, but it certainly is in many other major cities - London comes to mind).
- vacri 10y agoYep, Australia has a massive real estate bubble, and when it pops, we're screwed. However, despite all the things you mentioned, people are still willing to pay the pricetag... because those places in the top 10 are nice places to live. If they weren't nice places, they wouldn't be able to leverage the higher prices.