Brisbane Housing Industry: Growth, Challenges, and Recommendations

This report provides an in-depth analysis of the Brisbane housing industry, examining its growth rate, current market situation, and the factors influencing its development. The study aims to evaluate the growth rate, identify market demands, and assess the benefits for major construction companies like Hutchinson Builders. The methodology includes a positivism research philosophy, deductive approach, and descriptive research design, incorporating interviews with managers from Hutchinson Builders to gather primary data. The findings reveal concerns about slow growth but also highlight potential for increased building approvals and residential dwellings. The report analyzes themes such as growth rate, annual profit margins, and the impact of changing market conditions and construction finance. Ethical considerations were addressed throughout the research process, ensuring data integrity and informed consent from participants. The report concludes with recommendations for construction companies to navigate market challenges and capitalize on future opportunities within the Brisbane housing industry.

Running head: HOUSING INDUSTRY IN BRISBANE
HOUSING INDUSTRY IN BRISBANE
Name of the Student:
Name of the University:
Author Note:

HOUSING INDUSTRY IN BRISBANE 1
Introduction: 750
The housing market of Brisbane has ticked the boxes for future growth in terms of the
prices, but the same would require quite a good time to come up with the actual start that is
required for the particular market. According to the reports of CoreLogic, the housing
industry in Brisbane has experienced a drop in the value of the price in the last month. In fact,
the values went down by almost 0.3% in the first few days in July. The market has been flat
for a long time. However, there is no doubt that the industry is growing at a small rate and
that many builders and contractors can easily take advantage of the same and grow up their
business. In an interview based with around 250 industry participants, it has been evident that
the capital city has a price growth of 3.4% with the units expected to lose at a value of 0.8%
in the coming year. In fact, the housing price will further move upwards and will definitely
reach out a particular position where it shall be effective enough to provide strong response to
the lowest interest rates. In fact, the rates have also been revised from that of the 2016 and
that is of the present situation. In fact is the housing industry of other parts of Australia is
taken into consideration, it can be easily pointed out that the condition of Brisbane is much
better than other parts of Australia. Thus, the opportunity for the builders and constructors is
high for carrying out the business activities in this regard. All these factors can easily be
accessed and that the housing industry can easily consider these factors in exhibiting
preferences on the housing activities in Brisbane. On the other hand, other particular regions
like Melbourne or Sydney are also at a competitive situation because these two places are
also found to attract good number of investors in the housing industry.
Aims and objectives:
The aim of this study is to evaluate the growth rate of the Brisbane Housing industry.
This will help the major housing and construction companies like Hutchinson Builders to

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understand the market demand and the growth of the industry and that how much they can be
benefitted from the housing industry.
The objectives of the study are:
1. To understand the actual market situation of the Brisbane Housing industry
2. To evaluate the factors that are responsible for the slow growth of the Brisbane
Housing industry
3. To recommend certain factors that would help the housing and construction
companies like Hutchinson Builders to carry on their business more effectively.
Significance and relevance of the research:
This particular topic has been selected for the study because it is clear enough that the
housing industry has been growing and that major businessmen can easily take the
opportunity of the same and can carry on their business activities accordingly. The findings
and the interpretation of the research would be helpful for these business activists and at the
same time, it shall be a better approach towards this industry. The housing industry of
Brisbane can also help to increase the GDP of the country as a whole. Thus, carrying out a
study on this particular topic is rather important.
Problem statement:
Economic forecasting has suggested that there will be a stagnant or moderate falling
in the price of the houses or others related to the housing industry. There is no particular
indication as when the housing industry will be at a better position either this year or in
coming years. Thus, there is a pessimistic view on the overall industry that has kept the major
business activists in great trouble. However, in case if the housing industry provides good
opportunities to these investors it shall be beneficial for them to improve their business
activities. This study shall focus on the importance and implication of the increasing demand

HOUSING INDUSTRY IN BRISBANE 3
of the housing and property that shall directly affect the overall economic condition of the
country.

HOUSING INDUSTRY IN BRISBANE 4
Methodology: 750
This section of the study is based on the methodology that has been used for carrying
out the research. It is very important to design the research in the most appropriate way in
order to get the result of the findings. Below is the detailed discussion on the methodology
used for this particular study.
Research method outline:
For this particular research, the positivism research philosophy has been used to
evaluate the secondary data. For the research approach, the deductive method has been used
that has made it easier to understand the theories and concepts in details. In addition to this,
the descriptive or the analytical research design has been used as the research design. On the
other hand, in order to collect the primary data, interview had been taken from 5 managers of
Hutchinson Builders has been taken in order to get the overall idea about the particular
research topic.
Research philosophy:
There are three research philosophies namely, positivism, realism and interpretivism.
Philosophy helps to carry out the research in a detailed and objective manner. For this
particular research topic, positivism research philosophy has been selected because the topic
needs to be discussed in a logical and in depth way. It is only by the means of positivism
research philosophy, the topic can be investigated in a logical and critical manner. On the
other hand, the two forms of research philosophy, namely, interpretivism and realism are
based on the human perception and the concepts can vary from one person to the other. Thus,
these two philosophies are not the suitable approaches for this particular study.
Research approach:

HOUSING INDUSTRY IN BRISBANE 5
There are two types of research approaches, namely inductive and deductive
approaches. The inductive approach deals with the already existing theories and deductive
approach deals with new concepts and ideas. It has to be understood that for this particular
study, the findings and interpretation is largely depended on the perspective of the people
who are directly engaged in the business activities of the housing industry. It is for the same
reason, 5 managers have been interviewed and their opinion has been noted. So, the
deductive research approach has been undertaken in this respect.
Research design:
The three research designs are analytical or descriptive research design, explanatory
and the exploratory research design. The idea of the descriptive design is to provide a detailed
and analytical view if the overall study. The exploratory design helps to understand the
concept at the initial stage of the research. It is for the same reason the analytical or the
descriptive research design has been used for carrying out the analysis of this particular
research. An in depth idea of the critical factors that are responsible for the overall growth of
the housing industry in Brisbane.
Research strategy:
The findings and implications of this particular research is based on the information
gained by interviewing the managers of the particular construction company. Therefore, the
research strategy adopted is the interview method. It has to be understood that in order to get
sufficient information from a good number of respondents, the survey method is used.
However, in this particular situation, it would not be possible to carry out a survey among
people who shall be readily gives their point of view on this particular topic. So, other forms
of research strategies have been avoided for this particular research.
Sampling method and sampling size:

HOUSING INDUSTRY IN BRISBANE 6
The two types of sampling techniques namely probability and non-probability
sampling techniques are the common form of sampling techniques used for carrying out a
research. For the purpose of interviewing the managers, the non-probability sampling
technique had been selected. It was by this means, detailed information on the particular issue
was gained from the particular group of people interviewed.
Data collection method:
Data has been collected by the means of both primary and secondary sources. For the
secondary data, information available from the various sources available over the internet.
These include the newspaper articles, journals and any other information related to the
particular topic under discussion. In addition to this, previously research papers have also
been taken under consideration for this particular purpose. In addition to this, the primary
data that have been used for the purpose of this study has been collected by the means of
taking interview from the managers of the particular industry. The overall findings of the
particular research are based on the data collected from both the sources. This gives a detailed
understanding on the topic and how the different factors are affecting the housing industry of
Brisbane.
Data analysis:
There was no data that had been gathered from surveys, so there was no scope for
analysing the data. The qualitative data that has been collected by the means of the interview
technique, thematic approach has been used for the analysis. In addition to this, the secondary
data that have been collected from various sources have also been evaluated by the means of
thematic approach. Thus, overall thematic approach has been used for the purpose of data
analysis for this particular research study.
Ethical consideration:

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Ethical consideration was an important part in the overall research study. Ethical
approach was taken for the collection of both secondary and primary data. At the time of
collecting the secondary data, consideration was made on the plagiarism activity. It was
thoroughly checked that there was no plagiarism involved in the secondary data sources. For
this, each and every sources that have been used for the purpose of carrying out the research.
For the primary data, it should be noted that none of the respondents were forced to
participate in the particular study. Consent from each and every member was taken. It was
kept under consideration that the participation of the people was only for the sole purpose of
the academic work and nothing else. The questionnaire supplied to the respondents did not
contain any kind of logo or symbol that would act like an advertising activity.

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Interpretation of the findings: 1300
In order to understand the perspective of those who invest in the housing industry of
Brisbane, interview of five managers of the Hutchinson Builders was taken. The interview
was a semi-structured interview with a number of open ended questions. The questions were
related to the recent prospect, the growth rate and the annual profit margin of the housing
industry in Brisbane. This gave a clear idea on how the builders actually work on the market
and that how well they are prepared with upraise and fall down of the market situation related
to the building industry of Brisbane. The data and information collected from the particular
interview can be converted into a number of themes like the growth rate and the annual profit
and the same can be evaluated accordingly.
Theme 1: Growth rate of the building industry:
Every single individual was concerned with the slow growth of the industry but there
are high chances that that the number of building approvals will increase that would
automatically give scope to the increase number of buildings in the Brisbane area. It is due to
the increasing number of building approvals, the number of the buildings in the Brisbane
region is increasing. One of the managers pointed out about the strong pipeline network that
has facilitated the building of the houses and the apartments. According to the second
manager, that as we move to the new city areas the market keeps on changing and this is the
reason that affecting the market of the building industry. The third manager pointed out that
there has been a change in the construction finance over the past 12 months and that the
market has showed great improvement in the major residential and other parts. In this respect,
the fourth manager clearly stated that there would be high rate dwelling in the coming years
as it has already been started in 2017. The start has been great and the improvement will be
carried on since then. The most important point has been pointed out by the fifth and the last

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manager that the cost of buying homes has been increasing and this is the reason that many
people are opting for their individual houses rather than trusting on other housing,
townhouses or the boutique unit developments. From all these, it can be clearly stated that all
the managers are quite aware of the increasing value of the home and that the particular
industry is at its momentum to reach high. The managers are ready to invest in the housing
industry keeping the increasing market demand and the better situation.
Theme 2: The annual growth rate of the housing industry

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Findings and analysis: 1000
Housing Markets: Factors and Determinants:
Dierci and Westerhoff (2016), in their working paper, try to understand the dynamics
in the housing markets in a generalized framework. According to their findings, the market is
subjected to heavy dynamics, not only based on current price-demand situations, but, also, on
the future expectations formed by the agents participating in this market about the prices and
availabilities. There are several factors determining the demand structure in the housing
market of any country. The authors try to analyze one specific factor, namely the speculative
forces from the demand side and after conducting statistical analysis, they assert on the
presence of booms and busts in the pricing cycles of this market, thereby creating temporary
bubbles as well as downturns in housing industries all over the world.
Their findings regarding the determinants of demand in the housing industry are
augmented by the research of Abdullah et al. (2016), who, based on the study findings,
determine and rank seven contributing factors in this industry, according to their level of
importance, in the decision-makings of new clients for housings. With the most important
factors being location and finance and the least ones being exterior conditions and family life-
cycle, there are several other determinants like neighborhood, developers and others,
according to the author. Australia, currently experiencing an upward trend in its housing
industry has an overall favorable scenario, based on these factors influencing the demand side
considerably. This is elaborated in the following section of the literature review.
Housing Market in Australia:
Burke (2016), in his article, studies the housing market structure of Australia
extensively, focusing specifically on the policy framework and government rules and reforms
under which the industry is currently operating. To study the market conditions of the

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country, it takes the common institutional framework of four sub-systems, namely,
production, consumption, managing and exchange, for the housing market also, keeping in
mind the limitation of this framework of excluding the humane factor completely. The study
sheds light on the favorable policy frameworks, benefits and strategies undertaken by the
government of the country to make the progress of the market easy. Various planning
controls, building and residential tenancy regulations, along with pro-consumption taxation
structures, including capital gains on rented houses, Affordability Schemes, exemptions and
cuts on taxes on new purchases, contribute extensively in the boom in the housing markets of
Australia in general. The Australian government also has provisions for several grants like
those of Affordable Housing and First Owner Grants, which provides immense incentives to
both the buyers and sellers to invest in this market. The authors try to attribute the
contemporary impressive performance of the housing industry of Australia to these pro-
growth housing policies designed and implemented by the Australian government.
The findings of Burke are largely, supported by the works of Gurran, Gilbert and
Phibbs (2016), according to whom, for proper and robust development plans and strategic
investment structures are of immense importance for maintaining stability in the housing
market of any country. The paper, after explaining the benefits of appropriate policy
framework for housing market over all, concentrates on the Australian scenario. It supports
the finding of Burke, suggesting that the development, which the country faced as a whole
and especially in several locations, was primarily due to the industrial growth in the country
along with the policy structures, favoring industrial progress as well as growth of the housing
markets, both of which are interrelated. However, the paper also takes into account the recent
activities in the concerned market, which has led to a price hike in several economically
progressive zones, Sydney being one of the topmost of them. However, the findings of the
paper shows that though Brisbane falls in the economically prospective zone category, the