Impact of Global Financial Crisis on Australian Property Market

The research aims to explore the methods through which the financial crisis affected the real estate market, identify the factors that influenced the fluctuation of the property market, and discover possible approaches to reduce the volatility of the property market.

Business research
Student id:
FEBRUARY 7, 2019
[Company name]
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Table of Contents
Introduction................................................................................................................................2
Research Title.........................................................................................................................2
Research aim and objectives..................................................................................................2
Statement of the problem........................................................................................................2
Justification.............................................................................................................................3
Potential output of the research..............................................................................................3
Research hypotheses...............................................................................................................3
Conceptual framework...............................................................................................................4
Research methodology...............................................................................................................5
Research Approach.................................................................................................................5
Research Types.......................................................................................................................6
Research Method....................................................................................................................6
Data Collection Method.........................................................................................................7
Data Analysis..........................................................................................................................7
Research Limitations..............................................................................................................7
Organisation of the study...........................................................................................................8
Introduction section................................................................................................................8
Literature review....................................................................................................................8
Research methodology...........................................................................................................8
Data analysis and findings......................................................................................................9
Conclusion and recommendation...........................................................................................9
Project budget and schedule.......................................................................................................9
Justification.............................................................................................................................9
References................................................................................................................................11

Introduction
Research Title
The research title of this study is to investigate the Impact of Global Financial Crisis on
Australian Property Market.
Research aim and objectives
The key purpose of this research is to investigate impact of Global Financial Crisis on
Australian Property Market. The researcher accomplishes the following objectives to
complete aim of study:
 To explore methods wherein the crisis of the financial market for real estate market
place.
 To identify the factors that affect the real estate fluctuation in the Australia market
 To discover probable approaches to decline volatility of the property market.
Statement of the problem
The property market is increasing from Australia, USA and UK to China, Spain, as well as
France. An increase in property rate was since the early 2000 due to higher demand for the
real estate, which has gained because of interest rate for loans as well as scope of practicing
the security. The borrowers invested into housing properties whose rates were ever increasing
as well as resell those to earn profit for refining their mortgages (Mera and Renaud, 2016).
The financial crisis in the year of 2008 to 2009 has fundamentally influence the real estate
market of Australia. It could generate complexities within the economics acts of nation.
Under such environment, it is significant to assess acts in real estate market of Australia. By
assessing factor behind alterations in real estate value, it is assessed that where real estate
market was influenced by GEC (global economic crisis) (Jackson, 2018).

Justification
In 2008 to 2009, global crisis has directly impact on the economics condition of the country
as well influences the all events of the country. But, real estate market is different crisis that
is beginning by gaining demand for house because of higher growing estimation. Crisis has
created in the US as well as influenced nations such as Japan, Canada, Australia, China,
Greece, Spain, India, New Zealand, and France. Thus, it is evaluated that the global crisis
could impact on the overall business performance of the Australia (Yates, 2014). The housing
gurgle could direct for bursting real estate business, which may influence investor at higher
extent. Hence, it is required to assess fluctuates in real estate business because of national
economic crisis (Ley, 2017).
Potential output of the research
It could be expected that global economic crisis is highly impact on the property market in
Australia. It is also evaluated that the rate of interest is not increased effectively as well as
inadequacy of real estate in the Australia restricted trickle of booming in real estate market.
By using investigation, it could be predicted to address technique wherein a crisis is
channelized to property market by the financial marketplace (Dreger, Kholodilin, Ulbricht,
and Fidrmuc, 2016).
Research hypotheses
The following research hypothesis is considered by the researcher to evaluate presume
outcome for particular study:
 Null Hypothesis (H0): There is positive relationship between Global Financial Crisis
and real estate market of Australia.
 Alternative Hypothesis (H1): There is no relationship between Global Financial Crisis
and real estate market of Australia.

Conceptual framework
According to Lizieri and Pain (2014), there are different causalities liable for creating the
global financial crisis in the housing sector like basic capital as well as high-interest funds are
organised through absolute capital. Moreover, secured loan as well as security is transformed
to obligation in relation to obligation. These loans were allocated to different stakeholders
such as universities, schools, hospitals as well as local councils. Furthermore, a non-bank
loan as well as mortgage giver was relied on funding in shorter time period. It was acquired
through shareholders of US. These shareholders have declined their trust on the housing
sector due to mortgage issue. It may create the complexities for the lender with respect to
non-bank. These were primary victim between Australian companies during global crisis.
But, Australian bank were less visible security with respect to sub-prime finance.
In contrast to this, Sassen (2016) stated that global crisis has created shortage of supply in
relation to real estate market. Hence, the enhancement in the process of houses of Australian
market has increased on daily basis. In addition, it is evaluated that the financial crisis could
directly impact on the liquidity of the firm that was being a major issue for the organization.
A financial institution is major recognized borrowers of Australian economy. It highly
depends on the off-shored financing as well as faces complexity to refinance their maturing
outstanding amount.
According to Gündüz and Kaya (2014), there are high amount of corporations and real estate
companies that declining their business because of expansions in decline in the ban loans. In
addition, it is examined that the rate of Australian property is not declined unlike USA
because it maintained by higher income as well as comparatively low-interest rate. But,
certain investigation has found that shortage of housing, as well as high population, is the
sources of higher housing rate. It is addressed that repetition in loan of housing significantly

extraordinary and it involves grave anxiety. It could not be considered due to shorter period
as well as growth in the minimum wages.
In opposed to this, Bryan and Rafferty (2014) evaluated that there are huge obstacles that had
emerged due to high-interest rate. The real estate market leftovers in inflexible hold bubble of
housing related to history of Australia. In Melbourne as well as Sydney, sales of housing are
declining and leasing activities is also diminishing in the year of 2008. But, the resources are
booming in Queensland and it is supported by the property market of Brisbane. In the year of
2009, the income, as well as wealth condition of citizen, has diminished by 10% because the
impact of financial crisis on housing market has led to highly decline the equity rates.
As per the view of Morales and Andreosso-O'Callaghan (2014), the common citizen of nation
is suffered to afford better housing and it may lead to bankruptcy. The value, as well as
effectiveness of property market, has been declined in Australia as the prices of asset have
declined. It is evaluated that the housing rate of Australia is more affected in the 2008 to 2009
that decline the standard of living of the regional people who stayed in the Australia.
Moreover, after the global crisis, the economy has improved in least time that was major
achievement for the Australia.
In contrast to this, Ouma (2014) illustrated that fact of sales amount during the crisis was
highly captured through low ranked private purchaser as compared to institutional as well as
prime purchasers. The reason behind the declining revenue in relation to commercial housing
was that shareholders have inadequate finance as well as they are unassured for taking risk in
business. It is primarily due to limitation in context of development practices that current
company has delayed in their commitments. Furthermore, Australia was one of nations,
which are highly affected through the global financial crisis.

Research methodology
The research methodology is vital tool for obtaining the favorable result. It might entailed in
the research methods such as approach, strategy, information gathering method, data analysis
method, ethical consideration, and research limitation as it is described as below (Borio,
2014).
Research Approach
Research tactic is imperative in collecting feasible information towards the research matter.
There are two kinds of methods like inductive and deductive approach. It could be imperative
for collecting the feasible information about research matter. Furthermore, the research
scholar will imply deductive approach that facilitates to the researcher to make research
hypothesis on behalf of the current matter and reach at the reliable conclusion. Apart from
this, the deductive approach is effective for evaluating the collected data and leads to get
favorable result (Sornette, 2017). This method will leads to critically evaluate the factors that
might influence the real estate market of Australia.
Research Types
The research design could consider certain types like exploratory, descriptive, and
explanatory research design. In addition, it is evaluated that the exploratory design could be
imperative for obtaining the reliable information about the research issue. In addition,
explanatory design is used to explore information of collected data and meet aim and
objective. In addition, it is evaluated that descriptive design is effective for evaluate the
relationship between two variables like independent and dependent factors (Herndon, Ash,
and Pollin, 2014). In this study, the independent variable is Global Financial Crisis and
dependent variable is Australian Property Market. Furthermore, it is examined that
descriptive research design could leads to deeply evaluate the research matter and leads to get
favorable outcome.

Research Method
The research methods could lead to systematically operate the study and lead to reach at the
favorable conclusion. Further, qualitative as well as quantitative research technique is known
as the research methods. For conducting this investigation, researcher will practice the
qualitative research tool to get conceptual information towards the impact of global financial
crisis on Australian property market. In addition, it is evaluated that the research is imperative
in collecting suitable facts with respect to the research dilemma. Moreover, descriptive
research design is suitable for getting favorable result outcome (Herndon, Ash, and Pollin,
2014).
Data Collection Method
In the research design, two kinds of methods like primary and secondary information tool.
Moreover, primary information techniques lead to get fact based data about the research
matter. The primary data collection method could entail many sources such as interview
method, observation method, and survey through questionnaire. The secondary data
collection is an imperative tool this for the investigator to obtain the theoretical information
about study matter (Borio, 2014). In study, investigator will practice the secondary
information collection method and collect data in the context of the research issue. The
secondary data collection toll will be collected by considering the certain sources named
offline sources, books, journals, and articles. Moreover, it could be significant in the
accomplishment of targeted aim of the study. Further, secondary data is effective for
collecting the information from the existing sources. It will lead to reach at the reliable
conclusion (Sornette, 2017).
Data Analysis
Under this section, investigator will be imperative in collecting data in relation to research
issue. It could consider different tools like quantitative data analysis method and qualitative

analysis method as it leads to get reliable information towards research issue. It is evaluated
that qualitative data analysis will be practiced by the researcher to obtain theoretical data
towards the research issue In addition, it is evaluated that researcher will not imply the
quantitative research method as it could be more costly and time-consuming process as
compared to the qualitative research (Sornette, 2017).
Research Limitations
There are certain factors that might be considered in the research like time, cost, and
resources. In addition, it is examined that lack of resources could lead to the investigator for
the attainment of research objectives in least time. Investigator could be imperative to
consider such factors for increasing the productivity of the firm (Borio, 2014).
Organization of the study
The dissertation structure is effective for comprehending the structure of research like
literature review, introduction, data analysis, research methodology, and conclusion
recommendation (Sornette, 2017). It will be significant in making reliable data towards
research issue. It is discussed as below:
Introduction section
First chapter will lead to understand certain elements like objectives, background,
justification, as well as potential outcome. It could be imperative in gaining knowledge
towards research matter. It could be imperative in increasing understanding towards research
issue (Ouma, 2014).
Literature review
From literature review section, researcher will gained their conceptual understanding towards
the research issue. For collecting the conceptual information the investigator could consider
certain sources named online and offline sources, academic sources, books, and journals. It

leads to get favorable result in the context of the current matter (Morales and Andreosso-
O'Callaghan, 2014).
Research methodology
Research methodology is an effective for comprehending the different methods like research
strategy, research approach, data collection, data analysis method, and research methods, and
ethical consideration. It could also leads to comprehend each research topics that will lead to
get the favorable outcome (Ouma, 2014).
Data analysis and findings
Chapter four will support to comprehend the different methods for evaluating the collected
data and leads to get favorable outcome.
Conclusion and recommendation
Under chapter 5, the investigator will summarize the whole research in concise form
(Morales and Andreosso-O'Callaghan, 2014).
Project budget and schedule
For attaining the project within targeted period, the budget of proposed investigation would
be approximate $3000.
Activities Estimated Amount (in AS$)
Research Outline 500
Conceptual Framework 1400
Data Collection 1000
Final Report Submission 100
Expected amount 3000

Justification
When developing the research proposal, news articles, as well as journal articles, would be
required. This would have need of $500. There would be need of $1400 for gathering the
secondary sources such as journal articles, textbooks as well as other online sources in order
to obtain depth understanding regarding research concern. This research is based on
secondary data as well as qualitative in nature; hence it would have required $1000. In
addition, $100 will be required for final report submission.
Research activities Time (in weeks)
1 2 3 4 5 6 7 8 9 10
Outline of research
Conceptual Framework
Research Methodology (Data Collection)
Data Analysis
Final Report Submission

References
Borio, C., 2014. The financial cycle and macroeconomics: What have we learned?. Journal of
Banking & Finance, 45, pp.182-198.
Bryan, D. and Rafferty, M., 2014. Financial derivatives as social policy beyond
crisis. Sociology, 48(5), pp.887-903.
Dreger, C., Kholodilin, K.A., Ulbricht, D. and Fidrmuc, J., 2016. Between the hammer and
the anvil: The impact of economic sanctions and oil prices on Russia’s ruble. Journal of
Comparative Economics, 44(2), pp.295-308.
Gündüz, Y. and Kaya, O., 2014. Impacts of the financial crisis on eurozone sovereign CDS
spreads. Journal of International Money and Finance, 49, pp.425-442.
Herndon, T., Ash, M. and Pollin, R., 2014. Does high public debt consistently stifle economic
growth? A critique of Reinhart and Rogoff. Cambridge Journal of Economics, 38(2), pp.257-
279.
Jackson, K., 2018. Asian contagion: the causes and consequences of a financial crisis.
Routledge.
Ley, D., 2017. Global China and the making of Vancouver's residential property
market. International Journal of Housing Policy, 17(1), pp.15-34.
Lizieri, C. and Pain, K., 2014. International office investment in global cities: the production
of financial space and systemic risk. Regional Studies, 48(3), pp.439-455.
Mera, K. and Renaud, B., 2016. Asia's financial crisis and the role of real estate. Routledge.
Morales, L. and Andreosso-O'Callaghan, B., 2014. The global financial crisis: World market
or regional contagion effects?. International Review of Economics & Finance, 29, pp.108-
131.
Ouma, S., 2014. Situating global finance in the land rush debate: A critical
review. Geoforum, 57, pp.162-166.

Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban
Futures (pp. 89-104). Routledge.
Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban
Futures (pp. 89-104). Routledge.
Sornette, D., 2017. Why stock markets crash: critical events in complex financial systems.
Princeton University Press.
Yates, J., 2014. Protecting housing and mortgage markets in times of crisis: a view from
Australia. Journal of Housing and the Built Environment, 29(2), pp.361-382.