if property prices are set by free market what can any government do - Comment - Israel News | Haaretz Daily Newspaper
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    • zionist forever
    • 07.10.13 | 15:20 (IDT)

    As long as property prices are set by the free market how can any government seriously change anything? Largely thanks to olim with money who are now starting to come and investors wanting to buy to rent and foreigners wanting holiday homes in Israel ( whose money we need ) the fastest growing property market is the more lucrative luxury buildings. Even without the luxury buildings going up all over the place we are in the middle of a property bubble. Land is expensive so developers have to pass that onto the buyers. People who do own what was once an affordable property will take advantage of the high prices and sell the once affordable property for a high price rather than a more affordable price like they originally bought it for. Investors who own properties they rent if they know they can charge a high rent they will, why not thats their business? Cities like Tel Aviv will NEVER be affordable to the average Israeli because it is Israels version of New York or London where no matter how much you build the property you build prices will always go for a premium because so many people want to live there. It is the most expensive city in the Middle East and the 17th most expensive city in the world. You want to seriously make property affordable then the world. Only solution is to change the entire economic system making government responsible for ALL property. Tell developers what kind of properties they must build, if there is a shortage of affordable homes they must build those rather than luxury and government must tell developers & individuals just how much profit they are all owed to make and investors how much they are allowed to rent it for. Obviously these are not practical solutions but as long as its the free market that sets the prices then buyers will have to pay market rate and people renting will have to pay higher rents. Thats not the fault of this government or any other. From opposition its easy to promises miracle solutions but once in government the promised miracles don't happen because now they face with the same problems. Protesting and demanding change doesn't make it any easier for government to bring about bring down prices anymore than than farmers can make it rain when they moan there is not enough water for their crops.

    from the article: Cheap coffee? We need cheap homes
    First published 14:26 07.10.13 | Last updated 14:47 06.10.13
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