Factors Affecting the Rise of Housing Prices in Australia

Running head: FACTORS AFFECTING THE RISE OF HOUSING PRICES IN AUSTRALIA
Research Topic: Factors affecting the rise of housing prices in Australia
Name of the Student:
Name of the University:

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FACTORS AFFECTING THE RISE OF HOUSING PRICES IN AUSTRALIA
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Problem statement.....................................................................................................................2
3.0 Research aim and objectives......................................................................................................3
3.1 Research aim..........................................................................................................................3
3.2 Research objectives...............................................................................................................3
4.0 Justification of the project.........................................................................................................3
5.0Potential research output.............................................................................................................5
6.0 Conceptual framework...............................................................................................................7
7.0 Methodology..............................................................................................................................9
7.1 Data collection method..........................................................................................................9
7.2 Data analysis method.............................................................................................................9
8.0 Organization of the study.........................................................................................................10
9.0 Project budget and justification...............................................................................................10
10.0 Gantt chart.............................................................................................................................13
11.0 Conclusion.............................................................................................................................13
References......................................................................................................................................15

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FACTORS AFFECTING THE RISE OF HOUSING PRICES IN AUSTRALIA
1.0 Introduction
The research paper is based on the factors affecting the rise of housing prices in
Australia. The economic growth of Australia is related to the housing sector. The paper is
analysed the current housing market conditions within Australia. Over the recent years, the paper
is examined the factors which caused increase into housing prices (Knoll, Schularick, & Steger,
2017). There are various factors which affect the housing prices on economy of Australia. Home
ownership is considered as a key element into higher standard of living. Approximately 70% of
the Australian households are living into ownership occupied dwellings. A proportion of the
house owners without the mortgage are decreased over time that is considered as indication of
the household within the Australian economy. Cesa‐Bianchi, Cespedes and Rebucci (2015)
stated that housing plays a role to the social well being within Australians. The housing provides
a social as well as economic environment which is required for the political stability along with
prosperity. Throughout five years from the year 2000-01 to 2005-06, the established prices of the
house are increased by more than 110% (which is an average of 16.2% a year) (Ashworth &
Perera, 2015). The paper will analyse the housing market of Australia and investigate the factors
drive rise into housing prices. There is also evaluation of the effects of rise into prices.
2.0 Problem statement
Rise into the household debt is problematic for the economy into medium to the long
term. It supports of slow as well as steady approach towards the interest rate similar which is
observed at the economics around the world. There is stronger relationship among the price of
household changes along with households within Australia. The results show that there is $1,000

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FACTORS AFFECTING THE RISE OF HOUSING PRICES IN AUSTRALIA
increase into the value of house which is associated with $240 increase into the debt of
household among the house owners. When there is an increase into housing wealth, then there is
reduction of debt services (Ferrero, 2015). The movements related to house prices are provided
of impacts on the activities of labour market. The magnitude of this effect is varied by the gender
and type of family.
3.0 Research aim and objectives
3.1 Research aim
The aim of this research paper is to understand the different factors in increasing the price
of housing within Australia. It evaluates the effects of the housing which is raised the prices
within Australia.
3.2 Research objectives
The objectives of this research paper are as follows:
 To understand effect of increase in price of housing on the Australian household
 To execute and formulate the policies have greater interest to the Australian economy
 To examine the immigration effects of the housing prices within Australia
 To discuss the negative effects of the rising prises of housing in Australia
4.0 Justification of the project
The project report examines the positive and negative effects of the rise of house price on
economy as well as households of Australia. The positive effects are that the price of house is
affected aggregate demand as well as economic activities. Wooldridge (2015) stated that there is