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Simon Corbell intends to flood the real estate market.

By johnboy - 21 June 2005 9

Simon Corbell has just put out a media release (dated 31 May but trust me, only appeared online today) on his land release strategy.

It’s always hard to make head or tail of a Corbell/Boogs collaboration but I think this is the crux of the matter:

the Government has ensured that by the end of June this year concept planning will be in place for some 12,500 additional housing lots in greenfield areas, well in excess of the demand, which is expected to be for 5,000 over the next five years

Which to those who are at least economically semi-literate means he’s trying to lower housing costs in the ACT.

I for one applaud this!

For those who paid through the nose at the top of the market I can only hope you planned it as a long term investment.

What’s Your opinion?


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9 Responses to
Simon Corbell intends to flood the real estate market.
johnboy 11:15 pm 24 Jun 05

Evictor – what you have to understand is that people borrow to the edge of their capacity to repay and then find the best available house for that money.

So, now that the material improvements to the block are significantly divorced from the price of the package, Stamp duty is actualy a social positive and largely unrelated to the cost of buying a house.

If they whacked it UP it would possibly make housing more affordable, and certainly take money from property speculators.

Evictor 12:25 pm 24 Jun 05

maybe if they just got rid of stamp duty they would find many more people able to get into the market without the need for an oversupply as they seem to be proposing here.

Thumper 5:59 pm 22 Jun 05

I would have to say I’m astounded, and I applaud the Ear-Ring Boy for this one. And its difficult to see Stanhope’s hands on this one given that the recent policy has been completely the opposite so as to make bucket loads of money.

Is there another tax coming in that we don’t know about or is paid parking paying a hell of a lot more than anyone expected?

As good as it seems I just have this nagging little doubt hiding somewhere in the back of my mind that tells me that all is not what it seems.

Hopefully I’m wrong as affordable housing is getting to be a pipe dream. I was lucky, I bought my place ten years ago, but even then I paid twice what I would have if I’d bought it three years hence.

Bulldog, I doubt very much your house will devalue. It may remain stagnant for a while but won’t devalue and even if it does, it is all relevant to the market you are buying and selling in, and more to the point, you are now in the market, there are heaps out there who will never get that chance which is a travesty in a day and age of apparent prosperity.

Lets hope it sees more affordable homes for the general population, and that decent infrastructure is provided unlike Amaroo and places like that.

All in all, sounds like a step in the right direction.

bonfire 5:38 pm 22 Jun 05

typical to release land but have no plan to provide roads, public transport etc.

another brilliant planning move…

bulldog 1:50 pm 22 Jun 05

Having bought my first house in the last two years, I can’t say I’m thrilled with the prospect of my investment devalualating, which is potentialy possible if this land release is not managed correctly.

On the other hand, it’s fantastic for first home buyers. I hate to think that there are so many people who are continually struggling their guts out to pay rent (somebody elses mortgage)! At least when I struggled (and still do) I know that I have an objective in mind.

More power if this makes a difference to housing prices; I just hope the ACT Gov’t assists first home buyers more in the future.

Ralph 12:20 pm 22 Jun 05

I’ve long been of the opinion that the Stanhope Government’s land release strategy has been geared toward protecting the property prices of their social climbing (‘aspirational’) party constituents.

Spectra 11:38 am 22 Jun 05

I, too, am overjoyed if he can force a downturn in prices. Just one problem – previous land releases have been priced at “market value” which, contrary to how an ecconomist might interperate the phrase, actually meant that they were priced to “maintain the value of the land of people who’d already bought”, regardless of whether this meant the land got sold or not. (This was how one of the LDA representatives explained it to me – I’m not just making it up). If they’ve abandoned that idea due to the poor sales they got, great, but I’ll save my applauding until the prices actually drop.

Chris 11:26 am 22 Jun 05

Just two questions – where/what specifically are the “green fields ?” And does ‘Boogs’ refer to Monika who used to toil, if memory serves aright, at the Canberra Crimes ?

Jazz 8:53 am 22 Jun 05

It also means that he’s trying to prop up the building industry by making more land available for them to build on.

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