Impact of increase in transaction cost on traction price:
Assuming we used to have zero transaction cost and the price is $100 for product X, then buyer pays $100 and seller pockets $100. Now the government is saying we need to add 100% as VAT starting tomorrow. If buyer is bearing the whole tax, then the price of X will still be 100 but buyer needs to pay $200 (price increased 100% from buyer's perspective but no change from seller's perspective). Else if the cost is being taken care of by the seller, then the price will be $50. I suppose in reality, the additional cost is most likely be shared by both sides economically: price going to ~ $80 area.
Applying that to our new DDD, then can we say transaction price should have gone down by few percentage point just to reflect the price changes (increase). And therefore the sideway move in property index actually mean (economic) price have already gone up by few % points?
I don't understand why people like 6F tried to spread hatred towards property owners. I imagine after SSD people buy property to live and/or preservation of money against inflation only. Besides I don't think many landlords spread hatred toward people who does not yet own property either by saying things like "prepare for BBQ because if you don't own property you will pay rent forever". In fact I think property owners want them to buy flats. This will help sustain a healthy property market.
