Melbourne Real Estate: Business Analysis Report for MIS770

This report provides a business analysis of the Kingfisher Bay real estate market in Melbourne, focusing on house prices, property conditions, and potential land subdivision opportunities. The analysis includes an examination of price ranges across different suburbs, highlighting variations in average house prices and the distribution of properties within specific price brackets. The report further assesses the condition of available houses, categorizing them as 'Very Poor,' 'Poor,' 'Good,' or 'Excellent,' and correlates these conditions with the suburbs where they are located. Additional factors considered include the influence of the number of rooms, land size, and weekly rent on house prices. The report also explores the potential for land subdivision, estimating the percentage of land suitable for this purpose and analyzing the average land sizes. The findings aim to assist the real estate company in making informed decisions regarding property pricing, renovation, and land utilization strategies to maximize business opportunities.

Running head: BUSINESS ANALYSIS IN HOUSING SURVEY
BUSINESS ANALYSIS IN HOUSING SURVEY
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Executive Summary
Due to advancements in technology and generation of huge amount of data nowadays, the
organizations are incorporating ample amount of benefits in their business processes. The
data generated on a daily basis are thoroughly analysed to extract out information from them
and thus, make improvements in the sectors where it is necessary. In addition, the business
analysts with the help of these data implement new strategies in the organization for the
mutual benefits of themselves as well as customers. In the given case study of Kingfisher
Bay, a real-estate company, business analysis is done on their properties such that they can
improve the condition of the houses. Analysis is also made on the factors that determine the
pricing of the houses. Furthermore, they can conduct surveys in the upcoming year for
increasing their business horizon. A report is generated to analyse the factors and the issues
that needs to be attended for improving their business aspects.

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Table of Contents
Answer 1....................................................................................................................................3
Answer 2....................................................................................................................................4
Answer 3....................................................................................................................................5
Answer 4....................................................................................................................................6
Answer 5....................................................................................................................................6
Answer 6....................................................................................................................................7
Answer 7....................................................................................................................................8
References..................................................................................................................................9

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Answer 1
The prices of the houses at the Melbourne suburbs are increasing at a large rate and
City of Kingfisher Bay is no exception where the evaluation of the house prices ranges
approximately from $150 million to $1750 million. In total, there are 120 houses available to
be sold to the buyers of Melbourne at this price range. Maximum number of houses are
available at the price range of $700 million to $850 million. More than 20 houses are
available at this price range in the City of Kingfisher Bay (Gray 2019). The next price range
varies from $1000million to $1150million and within this range; almost 15 to 20 houses are
available. Furthermore, there are also 15 to 20 houses available in the price range of $550
million to $700 million and $850 million to $1000 million. A number of 10 to 15 houses are
available at $400 million to $550 million at Kingfisher Bay.
Hence, it is clearly visible that the maximum number of houses are available at the
price range of $400 million to $1150 million. Approximately, 10 houses are available at
$1150 million to $1300 million price range, five houses at $1300 million to $1450 million
price range and five houses at $1450 million to $1600 million price range (Quinlan et al.
2019). Less than five houses are available at $250 million to $400 million price range and
$1600 million to $1750 million price range. This clearly depicts that only few houses at
Kingfisher Bay that are either too costly or too cheap. In addition, the price range suddenly
increased from $400 million range to the $800 million range for a huge number of houses and
kept on increasing further.
While calculating the median of the house prices, the range of the house prices
for a certain number of houses will be available. However, calculating the average house
price will give an exact single mean value within a certain range and the number of houses

4BUSINESS ANALYSIS IN HOUSING SURVEY
will not be available (Ott, W.R., 2018). Thus, calculating the median of the house price
ranges are more helpful as a data than the average of the price of the houses.
Answer 2
There are three types of suburb available at the City of Kingfisher Bay where the
houses are put up for sale for the buyers at Melbourne. The prices of the houses vary from
each other according to the suburb regions that are sequentially named alphabetically. There
are 46 houses available at the first suburb of the Kingfisher Bay for the buyers to make
bookings. The house with the lowest price available at Suburb A of Kingfisher Bay is of $290
million and the highest price of a house in the same suburb is of $1224 million (Greasley
2017). Hence, the average price range of the houses at Suburb A is approximately $766
million.
Similarly, there are 33 houses available at the second suburb region and the lowest
price of a house available at Suburb B is $192 million whereas the house with the highest
price in the same suburb region is $1468 million (Varmuza and Filzmoser 2016). Thus, the
average of the prices of the house available at Suburb B of Kingfisher Bay is near about $846
million. Furthermore, the last suburb region comprises of 41 houses amongst which the
minimum range of a house is $473 million while, the maximum range of the house is $1761
million. Thus, the average price range of the houses at Suburb C is approximately $1053
million.
Analysing the price ranges it can be concluded that the houses available at the Suburb
C are comparatively costlier than the houses available in the other two suburb regions at
Melbourne because the average price of the houses of this region is the highest amongst the
three suburbs (Woodward 2016). Hence, only the rich clients can afford the houses in this
suburb region. Suburb A on the other hand are for the low middle class people because it is

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clearly visible that the average price of the houses at this region is less than the Suburb B and
Suburb C. The houses at Suburb B are for the higher middle class families that can afford a
reasonable cost. However, they will get a less scope because this region comprises of only 33
houses whereas there are 46 and 41 houses at Suburb A and Suburb C respectively.
Answer 3
There are 120 houses available at the City of Kingfisher Bay for sales for the
Melbourne customers and they can be segregated into four conditions. The conditions are
‘Very Poor’and ‘Poor’; and ‘Good’ and ‘Excellent’. There are 42 houses that exist in ‘Good’
condition for sale to the customers and 23 houses of ‘Excellent’ condition (Guerrero,
Guerrero and Rauscher 2019). However, there are 40 number of houses having ‘Poor’
condition and 15 houses in ‘Very Poor’ condition that the customers might not like much
while buying the properties. Thus, 35% of houses although are in better condition, again there
are 33% of houses that needs to be looked into for repair such that their selling rate increases.
Comparing the condition of the houses according to the region of the suburb, they
belong; there are 26.67% of houses in Suburb A, 26.67% in Suburb B and 46.67% in Suburb
C that are in ‘Very Poor’ condition (Gardener 2017). In the ‘Poor’ condition, there are
37.50%, 35% and 27.50% in Suburb A, B, C respectively. There are 50% houses are in
‘Good’ condition in Suburb A, 21.43% in Suburb B and 28.57% in Suburb C respectively.
However, Suburb C has 43% of houses in ‘Excellent’ condition, much greater than the other
two suburbs where 26.09% houses fall in this category.
Hence, in conclusion, it can be said that Suburb C has the maximum division of ‘Very
Poor’ buildings that needs repair immediately. Suburb A possesses maximum ‘Poor’ houses
that requires immediate repairing along with Suburb B that also shares almost the same
condition as Suburb B (Mertler and Reinhart 2016). Again, Suburb A on the other hand has

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the greater percentage in ‘Good’ that is 50%, than the other two suburb regions and
customers will be extremely satisfied to view these properties of Kingfisher Bay. Suburb C
has 47.83% of houses in ‘Excellent’ condition. Thus, it will attract the high-class clients
because their price range will also be higher than the other houses of Kingfisher Bay.
Answer 4
The prices of the houses available at the City of Kingfisher Bay in Melbourne
depends on various factors like the number of rooms available in the house, the size of the
land on which the house is built, the housing area and the rent price of the building on a
weekly basis. All these factors help to decide the cost of the house that will be termed as the
‘selling price’ to the customers. For instance, a house with more rooms will require a greater
land size and the area of the house will also be bigger (O'Mahony 2017). Hence, it will
definitely be of a higher price than a house with smaller number of rooms and lesser area of
house and land size. In addition, a smaller house with four rooms segregated in a
proportionate manner will be of much higher price than a bigger house with only two big
rooms in it.
In the houses available for sale at the Kingfisher Bay, the number of rooms have a
great influence in deciding the price range of the houses because, organization and
framework of the rooms are the biggest attraction to the clients. In the analysis, it is found,
that the rooms of the houses available at the Melbourne suburbs are efficiently structured as
well as numbered. Hence, the rooms are a deciding factor for selling the houses to the
inhabitants of Melbourne. On the other hand, the land size is the least deciding factor for
pricing the houses because the customers will be least interested to know how much land the
house occupies for a structured building (Holcomb 2016). They will look into the building
itself and determine whether it is suitable for them or not and buy houses accordingly.

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Answer 5
Due to the increase in population, there is a high demand for land in the city of
Melbourne in Australia. The lands are falling short and people are in a crisis for lands to buy
them and build houses for themselves. Hence, the only solution to this crisis is to subdivide
the existing lands of the country and sell them to the customers such that everybody gets a
fair amount of chance for constructing houses for themselves (Macfie and Nufrio 2017).
Various land regions at Kingfisher Bay incorporates size of more than 1000 m2 and thus they
should be divided into smaller lands for building more houses for the innumerable clients at
Melbourne.
After conducting the analysis on the 120 houses available in Kingfisher Bay, it can be
said with 95% level of confidence that the lands, which are available for subdivision ranges
from 37.74% to 55.59%. While conducting the test for 99% level of confidence, the range of
land that can be subdivided ranges from 34.94% to 58.40%. Hence, these lands should be
divided for a better implementation of structuring houses such that they are sold to a greater
number of customers.
The estimated average land size of the lands at Kingfisher Bay ranges from 1107.82
m2 to 1242.63 m2 at 95% level of confidence whereas, under 99% level of confidence, and the
average size of land varies from 1086.11 sq. m to 1264.34 sq. m (Mendenhall and Sincich
2016). All of this land region if divided in an organized manner will help the company to
profit more by selling more lands at a higher range of customers.
Answer 6
Due to the increase in the number of customers in Melbourne, there has been already
a crisis of land. In addition, this increase in the range of customers are detected by noticing
the status of the rental properties at Melbourne whether they are vacant or filled up.

8BUSINESS ANALYSIS IN HOUSING SURVEY
According to Judd, McClelland and Ryan (2017), after conducting the analysis tests, it can be
concluded that the vacancy of the rental properties dropped below 25 %, which indicates an
increase in the inhabitants who are buying or renting properties.
Again, people are having a knack for buying houses at the bay side. Hence,
Kingfisher Bay is always the ultimate choice for the clients for buying house properties, since
they provide a huge number of house properties for selling to the customers of the suburbs at
Melbourne. The test results clearly specifies that the average selling price of the bay houses
have crossed the limit of $825,000 and thus the company is incorporating lucrative profits
from the increase in the number of customers and their need for the houses.
Answer 7
The two conditions required the survey to be conducted at the City of Kingfisher Bay
are the true proportion of the houses of land size incorporating 1000 sq. m or more to within
2% and the average price of the houses to within $20,000 (Mead 2017). Based on these two
requirements, a survey will be conducted by the organization in the upcoming year and thus
will require a sample size of the houses that will be available for selling.
With 95% confidence level, it can be said that, 2367 houses will be required as a
sample size for verifying the land size of 1000 sq. m or more and in case of 99% level of
confidence, the sample size of houses increases to 4088. Furthermore, to check the average
price of range of the houses, a sample size of 1015 houses will be required in 95% level of
confidence and 1752 houses will be required in 99% confidence level (Bain, L., 2017). Thus,
with these sample sizes, the company of Kingfisher Bay can conduct the survey, get
generalized results for the overall population, and thus implement business strategies
accordingly.

9BUSINESS ANALYSIS IN HOUSING SURVEY
References
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Routledge.
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Gray, D.E., 2019. Doing research in the business world. Sage Publications Limited.
Greasley, A., 2017. Simulation modelling for business. Routledge.
Guerrero, H., Guerrero and Rauscher, 2019. Excel data analysis. Springer International
Publishing.
Hair Jr, J.F., Page, M. and Brunsveld, N., 2019. Essentials of business research methods.
Routledge.
Holcomb, Z.C., 2016. Fundamentals of descriptive statistics. Routledge.
Judd, C.M., McClelland, G.H. and Ryan, C.S., 2017. Data analysis: A model comparison
approach to regression, ANOVA, and beyond. Routledge.
Macfie, B.P. and Nufrio, P.M., 2017. Applied statistics for public policy. Routledge.
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Hall/CRC.
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Practical application and interpretation. Routledge.

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O'Mahony, M., 2017. Sensory evaluation of food: statistical methods and procedures.
Routledge.
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Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South
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