There are about 9.75 million residential dwellings in Australia, but despite a record construction boom stock turnover has fallen to well below 3 per cent, and way below the historical averages.
There could be any number of reasons for this.
Like a property market Jim Bergerac, I took a look through this month's housing finance data angling for clues.
Sure, stamp has been around forever, but the bands were designed with old dwelling prices in mind, and only recently have duties become farcically high.
The state's finances are in enormous nick - debt free and racking up big surpluses!
In any case, there has still been a 300 per cent increase in outstanding investor credit since 2003. Buy, hold, and compound the capital gains.
Reason 3 - Offshore investors
In Australia non-residents are generally restricted to the purchase of new dwellings, thereby encouraging new construction, and this is clearly working now interest rates have been dropped.
This is also a new trend - FIRB approvals have tripled in only two years!