Extended Essay on Economics

Toronto is the largest condominium market in North America followed by Montreal, Calgary, and Vancouver along with Halifax and St. Johns. Up until 2013 the market had been growing and especially booming in Toronto. In 2013 this high condominium purchasing rate attracted the attention of the Bank of Canada, and the question was posed whether satisfying this high demand, including from foreigner’s side, was a good thing for the market. Following that, the banks became more “cautious” when lending funds for construction or to purchase a unit. Low interest rates were believed to be favouring the booming demand. An increase in interest rates was believed to be a serious threat, however the probability of that happening was perceived as low in

The objective of this report is to outline the reasons as to what of the difficulties facing Sydney’s property market and analyse how the relationship between demand and supply influence Sydney’s housing market. This report will also evaluate the recent and future trends in Epping housing market. The outcome of this report will be submitted to the local government in order to provide recommendations in ways to improve the Epping area housing market.

Property market is one of the key challenges in the economy of Australia that need to be overcome for economic stability and economic growth. Housing is one of the important sectors of property market because housing provides shelter to us. But the current condition of housing is challenge for us because

In conclusion to this paper, since expo 86 there has been a vast inflow of immigration that has caused housing demand to rise within major cities, Vancouver being show in this as the worst possible case. Immigration at these massive amounts can cause people to go to the more popular areas adding to the city's/provinces overall population. When looking at the difference between Vancouver and Toronto you can see the same trend that is occurring, the higher inflow of people immigrating to Canada resulting in higher housing costs. These markets have seen a questionable rise in what should be considered a short period, stemming back to expo 86. Foreign money has no doubt been a cause to this crisis as people in Vancouver are saying, however, it is how

Several factors exist for the inadequate affordable housing. On the requirement side most are population growth and also higher migration to urban places, simply reachable housing finance, tax incentives as well as a “strong cultural preference for owner-occupied detached houses”. On the supply part, price level problems are exacerbated by inflexible and also poor responses to the demand for new housing stock, inadequate infrastructure and generally poor organizing procedures and development assessment by local governments.

According to the article “ Instead of meddling with foreign demand, we should be freeing up urban land supply.” by Kenneth Green, Steve Lafleur and Josef Filipowicz has stated that foreign demand for property in Vancouver and Toronto has raised the prices of housing in Vancouver and Toronto, due to the is shortage in supply of new home buildings. Therefore provincial government has took measures to improve the condition by adding additional 15% property tax on foreign homebuyers in Vancouver. However, the major problem in supply is due to barriers in new home buildings and long, uncertain approval for building permits and hue amount of fees.

Starting back in 1997 when the residential prices began to appreciate into 2003, the rising home prices can be examined through economic fundamentals. These fundamentals explain the price of buying a home in relation to rentals and interest rates – meaning that the housing market was not overvalued. Post 2003-2004, the

Indeed, the market for real estate is booming in New York. Furthermore, the search for luxury property is also on the rise. The fact is that the wealth is out there to buy those high rise penthouses or luxury commercial buildings. The good news is that the inventory is out there to satisfy those eager buyers. Sales are all over the place. However, there was significant growth with condominium sales. A lot of the buyers were also foreigners. For example, China is one country that has an eye on a lot of the real estate in New York City's finest luxury condominiums and other properties.

The Housing Industry Association of Australia (HIA) (Housing Industry Association, 2003, p. 14) estimates that, in the case of new housing, “the total indirect tax take is over $124,000 in Sydney and $88,000 in Melbourne”. In order to reduce the rate of house price inflation, the government was requested to reduce the current levels of charges. Owing to a number of interacting forces determining housing prices are unlikely to have the desired impact. What is more, the rising population in Australia results in the growth in the number of households, the main unit of demand in housing markets. Due to Immigration of other countries, this has been a fundamental factor of housing developments and price inflation in some areas over the long term. With the growth of economy and improvement of living standards, Australians are able to afford the house, leading to the price rise. It is likely that house price inflation can occur on some areas where the average incomes of individuals increased. In almost all societies, housing in behalf of the main family fortunes. When the value of existing house rise, the house owners and real estate companies would be confident to sell house with raising the housing

in regard of the timing of the Housing Boom the authors by providing figures and chart explain: ” according to the evidences residential investment moved above its average share (for the 1974–2001 period) in 2002 and rose substantially through the end of 2005, reaching 6¼ percent of GDP late that year—the highest share in a half-century.” (Dokko, Doyle, Kiley, Kim, Sherlund, Sim, & Heuvel, 2009).

Housing market developments are mainly regulated by the market and sometimes are influenced by the government’s policies. The regulation could balance the market if the housing market goes the wrong direction and help the market run healthily. From the article’s analysis for the housing market, we could know that what government could do is little for the market.

Since 2005, average prices in China’s real estate market has been growing rapidly every year. Analysts such as Javers E. and Powell B. (2010) argued over whether this rise was an effect of a speculative real estate bubble, or a real increase in demand. Signal of a bubble could be the big number of empty or uder-performing buildings and the continued construction of property, including an estimated 64 million unoccupied flats (AsiaNews, 9 Aug. 2011). As Xu Shenglan (2009) wrote, there were “high price-to-income ratios for real estate”, such as in Beijing where the ratio is 27 to 1

Real estate values increased 124% between 1997 and 2006 (Bianco, 2008. p.6). As the real estate bubble grew, increasing numbers of investments were tied to real estate. In 2006, chief economist of the US National Association of Realtors published a book entitled, “Why the Real Estate Boom Will Not Bust – And How You Can Profit From It” (Beachey, 2012, p.3).

According to Hofstede’s cultural dimension, we can know that Singapore has some characters: Low IDV Low UAI Besides, there are more and more overseas migrants in Singapore. In 2010, the proportion of Singaporeans to overseas immigrants is 3:1. And income per capital in Singapore is around USD$37,000, which means that the average consumption expenditure of Singaporean was powerful. High proportion of immigrant High consumption power 1.2 Red Bull

Singapore experiences a land constraint and with the rising population, there are an almost desperate calls for more housing estates as well as more facilities – even if that means calling on the dead.