As we have been saying since we started this blog, like in every other housing bubble, housing undersupply is a myth created by vested interests to try and excuse away the fact that house prices are ridiculously high.
At end of every bubble there comes an admission that the “undersupply” of housing was in fact a debt driven myth that only really existed because there was an oversupply of speculators. As the market collapses these people disappear and all of a sudden there are too many dwellings on the market and not enough buyers.
Melbourne property stalwart Max Beck has warned the city is headed for a massive over-supply of apartments that may cause a market implosion that would decimate property values.
Once again, all we can say is “we warned you”.
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