Factors Affecting Supply of Residential Dwelling in Melbourne Metropolitan Areas

RESIDENTIAL HOUSING –
SUPPLY ANALYSIS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Factors that affects supply of residential dwelling in Melbourne metropolitan areas.................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Residential housing has affected by many factors. Supply of residential dwellings mostly
depends economic conditions of existing place. That’s why economic factors highly influence
supply of residential dwelling. This report mainly discusses factors which affects supply of
residential dwelling in Melbourne metropolitan areas.
MAIN BODY
Factors that affects supply of residential dwelling in Melbourne metropolitan areas
There is various existing which can affect residential dwelling supply within
Metropolitan areas of Melbourne, in which some major factors have been discussed below;
Planning approval and planning restriction
This is one of the major factors which currently highly effecting supply of residential
housing in the metropolitan areas (Guo, Zhang and Cao, 2019). Reason is, when any housing
company start a new project for developing new residential houses, then it has always required to
take approval from local governing authorities which supervises activities which has based on
residential housing or dwelling. In this situation, many times that housing company need to pay
huge fund for taking approval to run housing project in any specific area (Saghapour and
Moridpour, 2019). At the end, when that housing some company sells residential houses to
people, then that company also charges very high amount from the customers. It means, planning
approvals and planning restriction aspects mainly raises rates of various residential houses. In
this situation, supply of residential dwelling in Melbourne metropolitan areas will be decreased
because of this factor, because most customers always like to purchase residential houses on
cheap or favourable prices.
Economic growth
This is another major factor which can affect residential dwelling or housing in metropolitan
areas (Reina and Kontokosta, 2017). Reason is, when any country has well-developed economic
conditions, then local people of that country can easily afford various residential houses.