The Canberra Times has got a story, on the assessment of Access Economics, that 2500 new units going on the real estate market in 2006 is probably going to keep prices down for the next 12 months. The ACT Government doesn’t seem to think this is remarkable news either.
What caught my eye was this intervention by the Real Estate Institute:
ACT Real Estate Institute president Stan Platis and Maloney’s estate agency principal Peter Maloney said Access Economics had never had a positive word to say about the Canberra housing market.
Interestingly they seem to think high disposable incomes will drive demand faster than supply.
Reading the article to then end it does seem that the economists haven’t factored in all the cunning tricks of developers, in this case putting off releases to keep the market
Does anyone think the ACCC should be looking at this form of price fixing?