It appears that Stanhope is feeling more than a little threatened with his latest incoherent rant “Humphries sets stage for return to ACT politics” fearing the possible return of Gary Humphries to the local government political arena.
In reality the Senator Humphries was pointing out some home truths, “Pouting Stanhope Shouldn’t Poo Poo Land Release“, about the Stanhope regime’s method of tightly controlling the land releases thus driving prices astronomically through the roof.
Making more land available on the market quickly is fundamentally good thing, there is no way that we can undo the huge increases in the value of land that have already occurred. The best we can do is attempt to slow the increase by making more land available and using the market forces of supply and demand to set real prices.
The land component previously accounted for only small proportion of the total cost of a house. Now it is easily 20-33% a significant portion of any house price. At the same time the actual cost of materials for construction has been steadily dropping, whilst the labour component cost has increased but nowhere near the extreme price gouging (by severely limiting supply) that has occurred since Stanhope has been in govenment.
I know in terms of housing is the so called “affordable blocks” that are drip fed out at Harrison (in Gungahlin) cost more per square metre even the few remaining few blocks available at O’Malley. And if you don’t believe me go look the figures up yourself on AllHomes.com.au.
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