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It's partially real estate, but I think it's also a combination of a tight labour market distorted by big mining wages and a "captive audience". Perth (and Darw
by tjmc 15y ago
It's partially real estate, but I think it's also a combination of a tight labour market distorted by big mining wages and a "captive audience". Perth (and Darwin) are so isolated that the hospitality industry seem to get away with murder.
The good news for HNers - there is abundant work here. If you know people outside the tech scene, they could do a lot worse than get a working holiday visa and visit Australia whilst the US or UK economies improve.
- bane 15y agoIn the States we'll just drive further out and try to urban sprawl our way out of high housing prices...usually with miserable traffic problems as a result. Any idea why Australia, with more than ample land, and relatively small population doesn't attempt the same? (not saying it's a good idea, but interesting to notice at any rate)
- brc 15y agoUsually urban planning restrictions and poor roads stops too much outward flow. Having said that, I do believe Perth is spreading fast enough. However new suburbs that are constructed are rarely considered 'affordable' suburbs. They are usually shiny new estates with big houses.
- jacques_chester 15y ago> Any idea why Australia, with more than ample land, and relatively small population doesn't attempt the same? Our land and planning laws are amongst the most complicated and restrictive on Earth. A comparable economy is Texas - but Texas has very light land release rules and so housing prices there have remained, in real terms, much more reasonable. Additionally, almost all of our major cities are wedged between the ocean and hills or mountain ranges.
- eddy_chan 15y agoOutside of the large cities infrastructure is almost non-existent. The national highway network is horrible compared to the US, the rail network is even pokier. Hospitals and schools are of a much lower standard as well government just doesn't have the money to build this stuff. Secondly, large businesses who provide employment don't want to be based outside of large cities because there's no talent so you get this problem the net migration is to the large cities forcing up real-estate prices and labour costs. It's this vicious catch-22 - how can you attract people and businesses to regional centres without investing in infrastructure yet where's the demand to build infrastructure if populations of said regional centres is declining not increasing. It's 2012 and the drive to urbanization (especially mega cities) has never been greater than now and yet to solve some of Australia's structural economic problems we need to attract people away from big cities by creating self-sustaining (in the sense it provides adequate opportunities for its own population) regional towns with fast rail links to major cities. It's an impossible feat with the system of Government we have now which fosters basically a 2 party system where both are slightly right of centre and stuck in their echo chamber of mediocrity.