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Is the basic concept of supply and demand is relevant here?

1. In Melbourne for one, there seems to be a shortage of rental properties, rent prices are going up (I think the population is increasing) so there's security in buying for investment, this would create buying competition, thereby sustain prices.

2. With the growing popularity of bicyles and public transport, and fuel prices climbing again - I know some professionals who don't even bother to own a car any more - the inner city lifestyle seems set to continue to gain favour.

3. The uncertainty surrounding beachside properties re the global warming scenario would have to undermine value of those properties (I heard insurance companies are starting to factor this in?), it would have to support value of other real estate which is not affected?

I have heard an argument that Australia will experience a real estate bust such as USA did just delayed, but somehow the idea does not tally with what I see happening around me.

Any thoughts any one?

G

<blockquote data-quote="gman027" data-source="post: 512103" data-attributes="member: 31084">Is the basic concept of supply and demand is relevant here?1. In Melbourne for one, there seems to be a shortage of rental properties, rent prices are going up (I think the population is increasing) so there&#039;s security in buying for investment, this would create buying competition, thereby sustain prices.2. With the growing popularity of bicyles and public transport, and fuel prices climbing again - I know some professionals who don&#039;t even bother to own a car any more - the inner city lifestyle seems set to continue to gain favour.3. The uncertainty surrounding beachside properties re the global warming scenario would have to undermine value of those properties (I heard insurance companies are starting to factor this in?), it would have to support value of other real estate which is not affected?I have heard an argument that Australia will experience a real estate bust such as USA did just delayed, but somehow the idea does not tally with what I see happening around me.Any thoughts any one?G</blockquote>

[QUOTE="gman027, post: 512103, member: 31084"] Is the basic concept of supply and demand is relevant here? 1. In Melbourne for one, there seems to be a shortage of rental properties, rent prices are going up (I think the population is increasing) so there's security in buying for investment, this would create buying competition, thereby sustain prices. 2. With the growing popularity of bicyles and public transport, and fuel prices climbing again - I know some professionals who don't even bother to own a car any more - the inner city lifestyle seems set to continue to gain favour. 3. The uncertainty surrounding beachside properties re the global warming scenario would have to undermine value of those properties (I heard insurance companies are starting to factor this in?), it would have to support value of other real estate which is not affected? I have heard an argument that Australia will experience a real estate bust such as USA did just delayed, but somehow the idea does not tally with what I see happening around me. Any thoughts any one? G [/QUOTE]

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