Someone did, however, in that very same talkback segment. Phyllis rang in to say she did want to complain, because she wanted to retire and downsize, but property prices were growing so fast that she was worried about buying and selling in the same market – even if it was a smaller property.
Howard told her she was wrong.
“You’re not actually complaining. What you’re really saying is the value of a house hasn’t gone up enough,” he said.
Phyllis was having none of it: “No, no, no. I disagree. I think that it is ridiculous that the inflation of the housing prices … what about our grandchildren?”
Phyllis was right. Because while she complained, in late 2003, about people having to spend “$500,000 … on some broken-down old dump”, the median house price for her grandchildren – assuming they live in Queensland – is now $977,300.
The government knew house prices were a problem then, and it knows they are a problem now.
And just like Howard, who was told by the Productivity Commission in 2004 – in a briefing prepared for his cabinet – that an urgent review of his capital gains tax changes was needed to arrest the jumps in the housing market, every single government has only made short-term changes that ultimately make the situation worse, rather than get to the root cause. And they are STILL doing it.
In 2003 Howard blamed low interest rates for rising house prices, as people could afford to borrow more.






