Hi all,
I read in the paper today that the VIC government is looking at opening up new land (ie 90,000) in a number of "growth"areas to fight the affordability issue.
The question I have is – is this a good or bad thing for property investors? If there is such a huge supply of land coming on the market, will this keep a lid on the growth of medium term property prices?
Any feedback either supporting or arguing against this view is welcomed.
Jeremy
One way of looking at this decision is the development of 90,000 outer urban land lots will eventually increase the demand for inner and middle ring properties. However it will lower the value of properties already in the far outer suburbs as deamnd is met or even oversupplied.
I severely doubt whether the Vic govt and the state has anywhere near the capacity in contractors, builders, engineers, nor would it have the price capacity to lure such workers.Also on the same front page of the paper was Water Restrictions to Stay for 3 years. So no water will be available for the 90,000 houses. I didn't read anything about public transport like a train line being provided or a additional power station to power these 90,000 houses. So it will be a less desirable location to live.
Yes, I read the same, however like duckster I could not see any comments regarding infrastructure developments, etc.
If you build them they will come… well I am not so sure…
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