Stanhope starts to panic… starting to worry about being caught out gouging on land/housing affordability

Jonathon Reynolds 19 November 2007 34

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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34 Responses to Stanhope starts to panic… starting to worry about being caught out gouging on land/housing affordability
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VYBerlinaV8 VYBerlinaV8 11:29 am 19 Nov 07

If you’re waiting for a house price drop in Canberra, you’ll be waiting a while. The current budget already provided for 5000 extra public service positions, over half in Canberra. Supply side problems have not been sorted. And I seriously doubt any govt is going to clean house when there’s so much money floating around.

Meanwhile, the Braddon development news is good for my Braddon properties! Hopefully I can grab a couple more before the market moves to much.

thetruth thetruth 11:02 pm 18 Nov 07

and neither do I (and its not 2620 – that emotive image is one created by you to make youself feel better. This is nothing better than creating fictional “bad guys” – Liberals with tampa and Sudanese- unions with Bosses granting themselves pay rises in aboard meeting after stripping the virtuous masses of all their conditions won during the great crusades.

Like a puppet on a string on a string…..

Pandy Pandy 10:52 pm 18 Nov 07

Fix your blog Jonathon:

“29 January 2003

The Gungahlin Equality Party has changed its name to the ACT Equality Party on the ACT’s Register of Political Parties, the ACT Electoral Commissioner, Phil Green, announced today.”

Oh I like your use of Proud which is very much a Labor song on your blog.

ant ant 10:23 pm 18 Nov 07

Well, my postcode is 2620 too, but I do not live in Queanbeyan. Or in a flat, lurking hopefully rubbing my money waiting for the collapse of the Canberra property market!

MrM MrM 10:17 pm 18 Nov 07

Thanks for that, Pandy – I didn’t know he was card carrying.

thetruth thetruth 9:21 pm 18 Nov 07

such an angry socialist casting very hypocritical dispersions on the prolitariat capital of the region – have a bubble bath, a Chardonny and grumble about the injustice of the world.

ant ant 8:57 pm 18 Nov 07

Well, there is rather a lot of overpriced bedsitters in queanbeyan, with that sprayed-on concrete ceiling stuff. I imagine though that you may have gone upmarket and got one with a bedroom.

thetruth thetruth 7:10 pm 18 Nov 07

Yeah thats right bedsitter in Queanbeyan. cause that all that is there.

Pandy Pandy 6:39 pm 18 Nov 07

Jonathon Reynolds is prepared to be vocal on matters political where a difference can be made

Bwahhh!

I look forward to more vote1reynolds pearlers

barney barney 6:22 pm 18 Nov 07

Insert a comma up your arse !!!

barney barney 6:19 pm 18 Nov 07

You’re sitting in Griffith sipping red wine eating lobster at Manuka posting on RiotACT via 802.11g cafe wireless madness !! ??

ant ant 6:16 pm 18 Nov 07

You’re sitting in a bedsitter rental in Queanbeyan, planning your assault on the Canberra property market?!

barney barney 6:14 pm 18 Nov 07

It’s amazing how the federal government is supposedly “not responsible for” these days :S
Canberra needs more available blocks of land for housing no doubt. But who in Australia can afford to go for a house loan ???

Surely the people in Red Hill wouldn’t wanna move to Taylor or Forde …

thetruth thetruth 5:51 pm 18 Nov 07

It actually didn’t take that long, I sold in Dec 1995 and bought again in much a better location 8 month later. Even better was that interest rates dropped at about the same time. This time we are in a rising rate environment – I am renting just outside of Canberra (so now my vote actually counts). I can quite happily wait for the triple impact of rising rates, razor gangs and belated land releases.

regularbrowse regularbrowse 4:59 pm 18 Nov 07

Hi thetruth,
Interesting discussion about house prices. Last time (1996) the Federal Government changed political colours and slashed jobs it took 18 months to 2 years for house prices in the ACT to bottom out. Can you afford to pay high Canberra rents for that long?

el ......VNBerlinaV8 el ......VNBerlinaV8 3:42 pm 18 Nov 07

Perhaps hoping that this thread, and references to it in ‘Recent Comments‘ go away quickly? That’ll only happen if people stop responding I guess…

Pandy Pandy 3:19 pm 18 Nov 07

Waiting for his Liberal mentor to write a reply for him?

el ......VNBerlinaV8 el ......VNBerlinaV8 2:01 pm 18 Nov 07

Hear that?

(…Crickets…)

Yep, still no response.

Pandy Pandy 11:48 am 18 Nov 07

Sepi, only by stealth.

Pandy Pandy 11:45 am 18 Nov 07

Is Jonathon the Pratt of the North?

I think he is using RA to build-up a CV of how he has attacked Sonic to take to his pre-selection meetings. No matter how stoopid it sounds it will sound great to the party faithfull.

Rather than keeping his mouth shut, and keeping his dull thoughts from being permantely recorded, he has distanced himself further from the halls of the Labor Government and will be a liability for the Gungahlin Council. But they wont see that.

What will be interesting is when he goes door knocking for the Liberals in Gungahlin, the new nappy valley, someone will alert the media to how he supported Burke and her attack on Gallagher. That will go down really well with working mothers.

Hear that? It is the sound of the gurgler.

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