Trimester 2 2019 HI5003 Economics: Property Market Analysis Report

This report analyzes the Australian property market, focusing on its significance within the Australian economy, its structure, and the issues it faces. It highlights the market's contribution to GDP, its concentration in major cities, and the impact of immigration and interest rates on property prices. The report details the market structure, including limited firms and entry barriers, leading to firms having market power and earning supernormal profits. It explores issues like overvalued property prices, the impact of government policies, and the effects of these issues on the economy, including reduced revenue and employment. The report also suggests policy recommendations such as lowering interest rates and providing incentives for investment. The report provides references to support its findings.