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(PDF) A STUDY OF THE EFFECTS OF THE STAKEHOLDERS

   

Added on  2021-06-17

13 Pages2301 Words154 Views
Running head: CURRENT AFFAIRS Current AffairsName of the StudentName of the UniversityAuthor Note\

CURRENT AFFAIRS 1Table of ContentsIntroduction................................................................................................................................2Essence of the Article.................................................................................................................2Discussion..................................................................................................................................4Primary issue of concern........................................................................................................4Effects on stakeholders..........................................................................................................6Economic Interpretation.............................................................................................................6Recommendation and Conclusion..............................................................................................9References................................................................................................................................11

CURRENT AFFAIRS 2Introduction The Australian economy, being one of the strongest and most influential economyacross the global scenario over the last few decades, has developed consistently andimpressively, showing highly robust growth trends in all its economic and other growthindicators. The booming economy along with the growing industrial, service and commercialsectors have attracted huge number of people from all parts of the world to migrate into thecountry over the years, in search of economic prospects, better employment and a better lifeas a whole (Butlin 2013). This huge inflow of population as well as the domestic increase in the population ofthe country has led to the creation of an increased demand for residential properties in thecountry, especially in the highly developed and economically prospering metropolitan andurban areas like that of Sydney, Melbourne and other cities in the country, thereby creatingan upward pressure on the prices of the housing properties in the country as a whole andespecially in these urban areas. Keeping this into context, the concerned report refers to the news article named,“More housing hasn’t fixed Australia’s affordability crisis. It’s time for a nationalsettlement strategy”, by John Brockhoff,published on 28th April, 2018, which tries tohighlight whether the steps taken by the government of the country, of that of increasing thesupply of housing in the country actually helped in decreasing the prices of the housing assetsin the country and also highlights the possible way outs to the problem of housingaffordability crisis which has been created in the country in the recent times(Thefifthestate.com.au 2018).

CURRENT AFFAIRS 3Essence of the Article The article shows that in the recent periods the country has seen huge growth in thesupply of housings, the numbers being even more than the other globally eminent cities likeLondon and New York. It also highlights the future projection of an additional 725,000dwellings in Sydney by 2036 and nearly 1.6 million of houses in Melbourne by 2050(Wadud, Bashar and Ahmed 2012). The article however does not view the increase in the supply of housing in the countryto be credible enough in bringing the price of the assets down in the near future. The possiblereasons which the article puts forward for the failure of the supply side initiative in thehousing sector of Australia is attributed to the different supports, especially financial oneswhich include the schemes like the First Home Owners Schemes as well as the tax cuts andlow rate of interests in borrowing for buying homes, which in turn has led to an increase inthe interest among the population to buy homes in the country, especially in the cities,thereby keeping the upward pressure of demand and price intact (Randolph, Pinnegar andTice 2013). The article highlights the problem of especially the low income or middle-incomeclasses whose affordability has not increased at all in the aspects of owing houses in spite ofthe presence of an impressively increasing supply of housing, attributing the problem to thesimultaneous increase in the demand for the same, fuelled by the government schemes. Thearticle ends up by recommending spatial strategic planning in order to improve the number aswell as the suitability of the houses which are in demand as well as by building houses at theplaces where the demand is high (Lee and Reed 2014). The article also emphasizes on properallocation of planning and investment so as to bring down the overall cost of owing a housein the country and calls for National Settlement Policy for diversifying and optimising thesupply of housing as per the demands in the country.

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