Mcmansion Pty Ltd Is A Housing Construction Business That

since there is a shortage of houses there is a rush to try and build more and a not much of an incentive to maintain properties. So, the quality of housing will start going down.

First of all, from 2008 to 2015, property prices of all capital cities in Australia have increased rapidly. People have had obsession with buying houses. At the same time,

Housing affordability can be defined as the ability to access appropriate housing at tenure or price which is not a significant burden upon household income. (1, 2) Australia has seen a significant decline in housing affordability; average house prices have increased by 147% between 2001 and 2011. This was not matched by increases in income. (1) This decline can be attributed to economic growth, population growth, more accessible finance and incentives for owners and investors. These factors create an incentive to buy and store wealth in housing, resulting in overinvestment and house price inflation. (2, 3) Consequently, this results in depletion of affordable housing for low-income households and increases pressure on social housing stocks. (1, 4) Supply and demand has a significant effect on housing affordability. (1)

Supply is also affected by the growth of a community over time. For example, a new city with 10,000 homes, expanding rapidly, will have low supply and therefore more expensive homes. An older city, however, with 50,000 homes and fewer and fewer new residents, will see

Increased cost of housing is also associated with the growing housing markets and inability to meet the ever increasing housing demands1 (Refer to Appendix G).

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.

Housing demand includes household growth, real incomes, real wealth, tax concessions to both owner-occupied and rental housing, concessions to first homebuyers, returns on alternative investments, cost and availability of finance for housing and the institutional structure affecting housing finance provision (Yates, 2008). The growth in the number of households and in real income results in the increased pressure on housing demand.

The low interest rate in Australia effects the housing market. Low interest rates allow property prices to push higher creating an unbalanced ratio between prices of property and income of owners of property and those who don’t. A housing bubble in the capital cities of Australia has potential to create significant danger to the Australia housing market and economy if interest rates are cut any

The price of residential real estate is no longer at the level it fell to during the peak of the

Dent is restating the hackneyed predictions we have heard over the past 20-years, "A Seller Tsunami will crush real estate." The population charts clearly demonstrate a growing demand market. The permanency of housing already built does not satisfy the growing population so Mr. Dent's first bullet point is not a cause for a collapse in housing space needed.

Supply is a curve showing the different amounts of a product suppliers are willing to provide at different prices. Equilibrium price and quantity are determined by the intersection of demand and supply. Price elasticity of demand (PED) indicates the responsiveness of consumers to a change in price, and is reflected in the relative slope of demand.

The demand decrease for house because the house prices is keep increasing. Average income and high income earner both can’t afford to buy new house because of the high rate. The price is making effect on the demands for house because people who have less income are not able to buy their own house. Therefore, they living on rent.

As per above diagram, per month rent of average houses in the UK has raised sharply over the period. In Northern Ireland, Rent price hasn’t changed significantly and it remained one of the cheapest area in UK with an average per month rent of almost 600 GBP in 20 12. However, London has indicated a huge growth. The price of rent has gone up from 1300 in 2006 to almost 2700 in 2012. This upward trend of rent in London influences the demand for house market to shift right –ward. As an illustration, if the price of rent goes up, it gives people a judgment to invest in house market and save the rent amount indirectly in property by giving monthly installments. In addition, renting house is considered to be a substitute to purchasing of it. So, if the price of a substitute product goes up (which is the case in London), the demand for product increases. As a result, by keeping all other factors constant, the demand of house in London has to increase if the price of renting house has increased.

(Reeves, 2005) furthermore, illustrates how differences in economic performance in different regions of a country affects demand and supply of housing. He compares London and the South-East to the Midlands and the North-East, stating that the economic growth in London and the South-East (coupled with sustained shortages in skilled labour) created a rise in average wage levels and a consequent rise in house prices as demand for private ownership of houses rose beyond supply. And that fluctuating growth levels negatively

Describe the changes that have occurred in either of the Christchurch or Auckland residential housing market (owner occupied) since the middle of the 2016 calendar year to June 2017.