James Kirby

All right.

Now, Nerida has done some really interesting work on one of our pet subjects, which is why is Melbourne so bad as a market compared to other markets?

When we say so bad, what we mean is from an investment point of view, as an investor, why the returns are so low there compared to other markets, such as Queensland and West Australia in particular.

The answer will be revealed after the break.

Hello, welcome back to the Australian's Money Puzzle podcast.

James Kirby here with Nerida Conisbee.

Okay, Nerida, so the other states would have it that Melbourne's property market is less rewarding for investors due to the fact that there are, oh, I can't remember how many in Texas there are.

It's impossible to keep account of them all.

That's one argument.

A state government that is not pro-business and certainly not pro-property, I think that's an argument that can be persuasively argued.

But you, pouring through the hard data, you have a different explanation.

Tell us about it.

I'm sorry, that's nationally, is it, Nerida?

No, that's in Melbourne.

But a key issue there that you have sort of excavated is that the supply, all things being equal, comparing state to state, the supply is best in Victoria.

Why is that?

Do you know?

Okay, so it's a historic observation as much as anything.

Okay.

And also, while I have you, one last thing, inflation.