Brisbane house prices

Doesn't look like I'll be buying my dream home in New Farm anytime soon :(

Have to agree with previous post. House prices here have no justification and the gap between the 'haves' and 'don't haves' is growing. Those who can afford buying properties and charge high rents are slowly changing our society. I totally agree with that last paragraph of the above post:'they fail to see the HARSH SOCIAL IMPACT that unaffordability in housing creates in the LONG TERM. They may get their greed satisfied in the short term with all that big money they make in profits (let it be rent or sales), but how does this affect our society? Obviously, they could not care less.'

Exactly so. Pity our tax system helps them in doing so.

'Demand' - the 'supply and demand' approach is a simplistic view, which fails to take other factors into account.

Whilst there is a demand for housing, there is also inadequate infrastucture in the outer suburbs (including inadequate, infrequent public transport). This, in turn, means that anyone who chooses to live far from the city will need to pay much more for public transport and commuting to work becomes a problem. Since a large percentage of renters are on lower income and have to commute to work (often in the city or around), there is a need for a much better public transport system which does not punish them by over-charging (at the moment, the zone system is such where the further one lives, the more unaffordable the trip is...) or by causing extreme inconvenience (such as infrequent and inadequate services for those who rely solely on public tranport).

The 'demand' side has often no choice, therefore they pay the high rents or end up buying houses which sooner or later they will not be able to pay the mortgages for. The 'demand' side has to live somewhere, has to go to work, often has to use public tranport (or budget on fuel etc), and alient to the priviledge of choice.

'Sending' these people to 'pioneer towns' is another simplistic approach. Often, a large percentage of the above are those who provide important services (such as cleaning your offices, making your food, clean your streets, provide you with customer service, serve you at the shop, and so on) - Brisbane needs these people not less than it needs the business players. Town planners, councils and governments who want a healthy and progresive society must take it into account.

The type of demand which inflates are housing and rental prices does not come from that part of society (which you suggest to move to other cities or pioneer towns...obviously, without taking into account that they often do not have the resources to move elsewhere and that you actually will not have a functioning city without them!). The demand which drives prices so much higher is the one from investors - those people who have money to invest (often, like previous posters mentioned, helped by our tax system) - being overseas, interstate, or local investors (all of which receive great benefits by investing into the local market) all in the name of our 'free capitalist economy'.

Yes, free economy has it's own benefits, but has to have some limits or guards as, otherwise, it stands the danger of becoming overly greedy, heatrless, cruel and create an unhealthy society.

A society where hard working individuals live on an income where they cannot afford housing (rentals including) or groceries is unhealthy. A society where these individuals turn to charity will have a growing resentment, lack of motivation and crime in the long run. A society where the 'haves' assume that charity is their 'token' to fairness fails to see that this patronising approach fails to see that the hard-working low-paid individuals deserve dignity and respect, and should be able to afford living.

A free market which fails to place structure, guards and measures to ensure affordability for that part of society and rather encourage greed and extreme wealth, will sooner or later create a society with extreme gaps between rich and poor and, hence, higher crime, lower motivation, decline in values and so on. Just like a previous poster stated, those who chooce to go with the simplistic approach fail to see the long term social impact to our society.

Joel and Linda

It may be a good idea if the local authority was to limit home purchase within a close city zone to those that intend to reside in them only.

Permiting investment property purchasers access only to newly built properties, this would increase the housing stock, which could ultimately limit rents because of the increased supply.

Am I being simplistic ?