Southeast Queensland bucks real estate rules
By
Andrea Cornish
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23/08/2010 5:30:00 AM
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A groundbreaking study commissioned by the Local Government Association of Queensland has revealed that boosting the housing supply has not put downward pressure on prices.
Using information from RP Data and modelling from the University of Queensland, the study’s findings contradict studies of a similar nature on national and capital cities.
The rule of thumb in real estate is that a 1% increase in stock typically results in a 3.34% decrease in real median house prices. However in southeast Queensland prices dropped only 2.39% after a 1% increase in stock.
Development delays in the area are still unexplained, according to AEC group chief executive Simon Smith.
“What’s illustrated through the data is there’s a response by developers to put their applications in to develop their land once they see the price is increasing and sustainable,” he told The Australian.
“But then there are considerable delays and that whole development timeframe needs to be looked at further.”
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