Housing Market The Property Market - 1356 Words

A) The Property Market 1) Current Condition 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 †¢ Rise in house prices: The price of houses are rising continuously in Australia from last few years and mainly two major cities Sydney and Melbourne faced more rise in price and its about 4-5 times the overall average earnings. This graph shows that housing price in Sydney and Melbourne is continuously increases in these cities 2010 to 2015 but in case of apartment prices, the rise is not as much as housing price. The rise in price is approximately 20% in Sydney and 16% in Melbourne in last 5 years. Reasons for the rise in house prices: a) Increase in immigrants: The main reason for the rise in prices of houses is the increase in population of the nation due to the emergence of immigrants and restrictive planning regulation that have limited the release of new land for development (Street A, 2012). As with the increase in demand, the supply of houses goes down. b) Foreign Investment Boom: Demand for the property by foreign investors have also been increased from last few years. This is responsible for rise in price. They generally invest in the commercial and non-commercial property and convert them into theShow MoreRelatedHousing Market and Property Taxes Effect Essay examples1698 Words   |  7 PagesDuring the Great Recession, we have seen property taxes and the housing market bubble decline substantially. During this down turn of housing prices and decrease in taxes we saw a drop in the revenue that is created by property taxes. 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