[Joeri]

Sounds like they’re fighting the symptoms instead of the cause.

You can’t pump billions in subsidies into the market, lower interest rates to the floor to prevent that money from going around capital markets and not expect some kind of dysfunctional price rise in the real estate market. Money finds its way to where it provides the best return, and right now that is real estate in most markets. Trying to fight this tide at the real estate end is somewhat futile. The governments need to give the money a better place to go.

[nwah1]

Right. The correct approach is to tax land by value, but exempt improvements. Make it expensive to do idle speculation and cheap to renovate or build.