The past year or so has seen a significant change in the dynamics of supply and demand for many products. When the GFC hit buyers kept their wallets in their pockets. Demand for many products slowed and prices eased. Fortunately Australia was insulated from the worst effects of the GFC so perhaps we did not appreciate the extreme effects that the First Rule of Economics can have on an advanced economy. But if you lived in one of the 'rust belt" cities of America you would be caught up in the worst effects of the GFC.

Late last year the media finally realised that the Australian housing market was not going to suffer the agony that was occurring in America. Now the papers are full of articles talking up the market. And the reason - "Demand is outstripping supply."

Demand is coming from population growth and supply is restricted by lack of raw land and arcane Council attitudes to higher density living. It seems everybody believes we need higher density as long as it isn't next door to their' castle or even in the same neighbourhood. NIMBYs (Not In My Back Yard) come out of the woodwork. Local Councillors react violently when a high-density development is suggested for their electorate. They need the NIMBY vote!

Some extremists have suggested a halt to population growth. Brisbane Courier Mail of 18/02/2010 even explored the possibility of "Capping Migrant Numbers" but came to the brilliant conclusion that this was "too hard." Courier Mail 13/03/2010 reported "Unit Prices Up, Sales Down." Weekend Edition of Courier Mail 20/03/2010 reported "Housing in low supply - Shortage to cause price hike." My goodness, this sounds like the First Rule of Economics.

If you believe that the population of SE Qld will continue to grow then you should take advantage of the wonderful opportunities that property investment offers. Some commentators are suggesting 40% growth in the next 20 years. Think about it.