Posted to The Age (21/12/2011) on 21/12/2011 at 10:58 PM (Not published by Newspaper)
Commenting on "Housing shortage bites as supply fails to keep up"
http://theage.domain.com.au/real-estate-news/housing-shortage-bites-as-supply-fails-to-keep-up-20111221-1p55v.html
The content of the title is in conflict with that of first paragraph. Furthermore, "…high prices kept many would-be buyers out of the market …" is incongruent to housing shortage.
The root of high real estate price can be traced back to one of the previous Prime Ministers who encouraged many young Australians to be degree holders rather than trade-qualified. Australia is confronted with big shortage of qualified tradespeople; consequently, large component of the total cost of construction is gobbled up by the tradespeople, not the material costs. The costs of tradespeople have sky rocketed literally, their earning is probably as much as, if not more than, a rocket scientist.
It is also rather unfortunate that the many buyers demand more than a house, be it new or renovated; they want a show case or a house equipped with expensive kitchens installed with brand named mod-cons, luxuriously finished bathroom, etc.
While new estates have sprung out further away from the CBD, businesses or employment opportunities have not been created by the same rate and proportion in those areas. Many potential buyers have come to the realisation that they need to live in areas with job offers and close to public transport. These criteria fit properties which command higher prices. In other words, the new entrants just cannot afford.
Part 1 of 3
Commenting on "Housing shortage bites as supply fails to keep up"
http://theage.domain.com.au/real-estate-news/housing-shortage-bites-as-supply-fails-to-keep-up-20111221-1p55v.html
The content of the title is in conflict with that of first paragraph. Furthermore, "…high prices kept many would-be buyers out of the market …" is incongruent to housing shortage.
The root of high real estate price can be traced back to one of the previous Prime Ministers who encouraged many young Australians to be degree holders rather than trade-qualified. Australia is confronted with big shortage of qualified tradespeople; consequently, large component of the total cost of construction is gobbled up by the tradespeople, not the material costs. The costs of tradespeople have sky rocketed literally, their earning is probably as much as, if not more than, a rocket scientist.
It is also rather unfortunate that the many buyers demand more than a house, be it new or renovated; they want a show case or a house equipped with expensive kitchens installed with brand named mod-cons, luxuriously finished bathroom, etc.
While new estates have sprung out further away from the CBD, businesses or employment opportunities have not been created by the same rate and proportion in those areas. Many potential buyers have come to the realisation that they need to live in areas with job offers and close to public transport. These criteria fit properties which command higher prices. In other words, the new entrants just cannot afford.
Part 1 of 3
