Why is there a debate about what determines property value? Does land prices determines house prices or does house prices determines land price?
Is it due to direction or causality.. or it could be simultaneous in which one causes another no clear pattern of simultaneous causality.
Will it guide people into the property market and into development and allow them to be more mindful of final house price.
or use market price to bargain for land price.
Who is this research significant to? Is it important to the government who is trying to increase the number of houses built to increase supply.
Argument that there is a huge supply of land available that property developers have access to.. because low house prices hasn’t increased enough to use that land. until house price increases and only then will they build on the land. this is issues of property supply, these issues may explain it better. the government can reduce sales tax on new houses. if government reduces it could make up the premium that property developers are waiting for to build houses.
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