Darwin house prices nearly double when they meet supply and demand, says the Australian economist who has been studying the phenomenon in the last decade and a half.
But Professor David Coonan thinks it's likely that house prices will continue to rise until their supply peaks â€“ even if prices fall as low as they did at the start of the housing boom.
"There is a strong expectation that demand for property will continue to rise, with house prices increasing at a higher rate than prices paid for new housing," he says.
"So although property prices have risen recently, we think it is likely that if demand continues to rise at this rate there is going to be a further fall in prices, perhaps between 2 and 3 per cent."
When the boom came to an end, more house prices were needed
As property prices rise, more people need to buy houses: the economist
But now the market for property has collapsed and supply is at a very low, it makes sense to sell houses rather than buy them â€“ not as many people need to buy houses at the moment but because demand for them is so low.
"When the boom came to an end and the Australian housing market had collapsed, we think you had a higher-than-anticipated drop in the supply of homes available to purchase," says Coonan. "The result is that house prices have continued to rise, while the supply of homes available to purchase has actually declined."
The fall in supply makes it harder to attract home buyers into the market.
The Australian Bureau of Statistics found in the first quarter of the year, the demand for rental housing that people need is lower than the supply they need â€“ yet the supply has been flat or falling.
"Even during the first quarter, the real interest in buying property has been extremely low in the past year â€“ people have been buying houses on a limited basis, maybe as far away as 10 kilometres from their home â€“ and even though they need homes to live in, they're trying to get those properties for the right price when they could be getting cheaper properties elsewhere," says Professor David Coonan, of James Cook University.
"This has pushed up real estate prices. This is an important point and it is in a very weak economic environment where there is a lot of slack.
"People have started to ask, 'What is the supply going to do?' And they're saying it's going to be very slow," he says.
The lack of demand is also pushing prices up.
"The real interest rate on mortgage bonds has come to more than $700 , but it is not the interest rates that are keeping house prices up, it is the lack of supply that is driving this up," explain
Raid a blow to pm qld liberals by killing off anti qld laws and the anti qld laws have been made the butt of jokes for years. so what is it about these laws that they are so reviled and despised?
the only people who are being reviled, are qld people because this one was made in qld by the same guys who made up the laws that made qld ok. the law that makes it an offence to say "dummy" at an all blacked out bar in a white racist nation is a classic example of a Qld law. the law that makes it it is possible to bring a complaint about an individual who you feel has done something wrong is not a Qld law and will cause more problems as a result.
the Qld laws were a joke by our liberal party and the majority of the people that voted against it know what they are. they know its a joke.
what this is trying to get at, are their intentions are to force us back into our old way of life. the same way that we tried to change the rules on drinking.
people will never come into contact with your race again and you don't have to make fun of other people's heritage. its what the laws want.
all of the black and white laws were made in the qld. and the government said it was a joke by not changing the laws because it was too scary. they are going to have to bring the laws down for the people to make fun of the white people.
this is the same reason why we want to turn these laws back on them. its time the laws change back on those that made the laws. its no big deal the people made the laws. people need to make sure they put a halt to all of the changes made to them by the politicians. not to mention the laws that the majority of the people dont like.
it is sad what this government is trying to get at. its just another white racist, liberal, npr, christians' political party trying to bring its racist version of the laws down.
they cant get rid of the laws, they cant get rid of the laws! the laws dont go away, but they will take a very long time, if ever. its a joke. its gone, its history. you can tell that the people that run this are just making it worse. you cant win by trying to get rid of the laws! you can only get rid of the laws through force or coercion. i guarantee your life will be a lot harder, or your freedom will be even harder. if you go after a law to bring it back in its place you might as well just come in with guns blazing.