BUS101 Economics: Analysis of the Australian Property Market Report

This report examines the economics of the Australian property market, beginning with an introduction to business economics and its role in decision-making. It provides an industry background, focusing on the real estate market in Australia and its historical growth. The report then delves into the market structure, particularly the residential property sector. It identifies key issues such as affordability, immigration, foreign investment, negative gearing, and interest rates, analyzing their impact on the industry and the broader Australian economy. Furthermore, the report outlines relevant government policies aimed at addressing these issues, referencing Australian property law. The conclusion summarizes the market dynamics and challenges, supported by references to academic research. This report provides a comprehensive overview for students of economics.

Economics for
Business

Table of Contents
 INTRODUCTION
 Industry Background
 Market Structure
 The Industry's associated issue
 Impact of the issue on the industry and on Australia Economy
 Government Policy
 CONCLUSION

REFERENCES

INTRODUCTION
 Business economics is the combination of all the economic
theories with an aim of facilitating the decision-making and also
forward the planning by a management.
 Thus, it present PPT main aim is to raise the research, analytical
skills as well as economic knowledge.

Industry Background
 Property Market comes under the Real Estate Market and in Australia, the
property market consist of trade of land and different permanent fixtures
which are located in Australia.
 It is analysed from the statistics that the average Australian Property price
grew approx 0.5% per year from 1890 to 1990 after the inflation rate.
 While on the other side, it is realized that up to 2017, the Australian
Property market is increases at faster rate.

Market Structure
 In Real Estate industry, the property market
share occupies a special place and even the in
that, the residential property also holds
special place in the Australia economy.
 As per the statistics, the value of Australian
residential property also climbed
considerably and as per the CoreLogic
analysis which is conducted in 2018, the
middle value of houses in Australia is
increases up to 412% from last 25 years.

The Industry's associated
issue
Affordability: It is the biggest issue face by the industry in which
housing prices of Australia is relative to average income, is
highest in the world.
Immigration to Australia: It is observed by different economist that
high immigration and inclination of new arrivals to cluster in the
capital cities of Australia is intensifying and thus it is consider as
an issue for housing market.

CONTINUED...
Foreign Investment in Residential Property: The federal
government mainly introduce the laws that relaxing the rules for the
foreign property buyers of Australia.
Negative gearing: The property of Australia also invest different
practice of negative gearing and this also occur when the investor
borrow the money to fund the property.
Interest rate: If there is an adjusting rate in the Reserve Bank of
Australia which is consider the favoured tool in order to keep the
country's economic growth .

Impact of the issue on the industry and
on Australia Economy
 Real estate have different issue but these issue also directly affect
the economy of country in negative way.
 Such that movement in housing price also affect the economy
through different channels and this also influence consumer
spending which include through the spending that may also occur
when people move from home.
 Sudden change in the price of house or residential property also
create the impact on access to finance on small business because
they have to take loan for collateral

Government Policy
 In order to overcome the issue of Real Estate In Australia, there are
different policy made by the government of Australia, such that as
per the Australia Property Law that regulate and prioritising the
Property Law rights, its interest as well as responsibilities of
individual.
 This law mainly priorities the rights and also classify different
property which may be real and tangible.
 On the other side, the government of Australia also introduce
Property Law which mainly define the requirement that needs to be
met with the Australian Law before the real estate.

CONCLUSION
 By summing up above PPT it has been concluded that there is a
fluctuation in the economy of the country such that as the supply is high
which means the prices of the residential property is quite high but the
demand is low.
 As per the study it has been concluded that from last many years, the
market share of Real Estate in Australia is decreases and it also concluded
different issues as well.

 REFERENCES
Cerutti, E., Dagher, J. and Dell'Ariccia, G., 2017. Housing finance and real-estate booms: A cross-country perspective. Journal
of Housing Economics. 38. pp.1-13.
Melser, D. and Hill, R. J., 2019. Residential Real Estate, Risk, Return and Diversification: Some Empirical Evidence. The
Journal of Real Estate Finance and Economics. 59(1). pp.111-146.