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But how would that affect the house prices in, say, Sydney Australia where the prices have also skyrocketed but 2008 had little effect?

by badsock 10y ago

conanbatt 10y ago
Investors that would usually invest in the US find those assets expensive, and thus invest in other countries. Even argentina, which was definitely shielded from the financial crisis, has had price increases.
- badsock 10y ago
  I'll agree that that the two markets aren't isolated. But you can't be claiming that NIMBYism in the US is the dominant cause of a sudden tripling of house prices in Australia, can you? The elephant in the room is that, during that same time period, China (and to a lesser extent, other BRICs) suddenly acquired a tremendous amount of wealth, and saw developed-world housing as an attractive blue-chip-investment/money-laundry. You can argue that NIMBYism made it harder for the Chinese to dump money by the freighter into the real estate market, but is that really a bad thing? It caused(/is causing) a massive bubble in an area that should be stable, on account of it being critical infrastructure. In any case, it's the giant piles of cash coming in that's the actual cause of the issue. NIMBYism (in the right-wing view), is taking the entire blame, when really it's only a factor, and it's highly debatable whether it's helping or hurting considering the potential downsides of the influx.
  - conanbatt 10y ago
    I dont think its nimby-ism, i think its just the development industry recuperating from a very high-high that made them go bankrupt very quickly. The chinese money angle is interesting, and though it can definitely help raise prices, once development gets hold of demographic growth, and a tad more, even increase demand would be met with increase supply. One of the great problems nowadays is that supply is not catching up and lots of measures are being put in place to limit demand, but once =supply catches up (which it can, and considering prices theres little reason to think otherwise), house prices could stabilize or even go down.

But how would that affect the house prices in, say, Sydney Australia where the prices have also skyrocketed but 2008 had little effect?

by badsock 10y ago

But how would that affect the house prices in, say, Sydney Australia where the prices have also skyrocketed but 2008 had little effect?

conanbatt 10y ago

Investors that would usually invest in the US find those assets expensive, and thus invest in other countries. Even argentina, which was definitely shielded from the financial crisis, has had price increases.

badsock 10y ago
I'll agree that that the two markets aren't isolated. But you can't be claiming that NIMBYism in the US is the dominant cause of a sudden tripling of house prices in Australia, can you? The elephant in the room is that, during that same time period, China (and to a lesser extent, other BRICs) suddenly acquired a tremendous amount of wealth, and saw developed-world housing as an attractive blue-chip-investment/money-laundry. You can argue that NIMBYism made it harder for the Chinese to dump money by the freighter into the real estate market, but is that really a bad thing? It caused(/is causing) a massive bubble in an area that should be stable, on account of it being critical infrastructure. In any case, it's the giant piles of cash coming in that's the actual cause of the issue. NIMBYism (in the right-wing view), is taking the entire blame, when really it's only a factor, and it's highly debatable whether it's helping or hurting considering the potential downsides of the influx.
- conanbatt 10y ago
  I dont think its nimby-ism, i think its just the development industry recuperating from a very high-high that made them go bankrupt very quickly. The chinese money angle is interesting, and though it can definitely help raise prices, once development gets hold of demographic growth, and a tad more, even increase demand would be met with increase supply. One of the great problems nowadays is that supply is not catching up and lots of measures are being put in place to limit demand, but once =supply catches up (which it can, and considering prices theres little reason to think otherwise), house prices could stabilize or even go down.