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Australia’s Property Market (and the recent correction starting in 2017)

Students are required to work in groups to analyse an industry and its relevant issue then apply their knowledge in the unit to write a report and make a presentation

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Added on  2022-11-16

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This report discusses the property market in Australia, its oligopoly structure, issues of continuously increasing prices and negative gearing, and their impacts on the industry and economy. It also covers the corrective measures taken by the Australian government.

Australia’s Property Market (and the recent correction starting in 2017)

Students are required to work in groups to analyse an industry and its relevant issue then apply their knowledge in the unit to write a report and make a presentation

   Added on 2022-11-16

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Australia’s Property Market
(and the recent correction
starting in 2017)
NAME OF THE STUDENT:
NAME OF THE UNIVERSITY:
Australia’s Property Market (and the recent correction starting in 2017)_1
Introduction
Property market in Australia is one of the major industries
It is characterized by rapidly rising prices, which created
inflation and a housing bubble in the Australian economy
Lack of adequate land to increase housing supply, lower
wage growth, negative gearing, tax concessions and
incentives for the investors are major reasons for increase in
hike in prices in this industry (Wood 2019)
The industry and market structure of real estate has been
discussed in this report
Australia’s Property Market (and the recent correction starting in 2017)_2
Industry background
The industry is non-uniform with high variation in prices between cities and regional
areas
Positive growth in Australian economy resulted in wage growth, high employment and
inflation rates and demand for properties increased.
Level of immigration in Australia is very high due to inflow of international students and
skilled workers and that increased the demand for housing, especially rental houses
Limited supply of land restricted the supply of housing creating excess demand in the
market
Unrestricted foreign investment and Negative gearing have also contributed in soaring
price
Capital cities, Sydney, Melbourne, Brisbane and their suburban areas have witnessed
maximum rise in prices (Phillips and Joseph 2017).
2017 onwards, the housing prices fell sharply and saw the biggest fall in 40 years (Scutt
Australia’s Property Market (and the recent correction starting in 2017)_3
Trend in Prices in Property Market
(Source: Verrender 2018)
Australia’s Property Market (and the recent correction starting in 2017)_4

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