Marketing Research Report: Real Estate Developer in Australia

This report presents a marketing research analysis of the Australian real estate market, focusing on the challenges faced by real estate developers. It examines the impact of economic factors such as fluctuating interest rates, unemployment, and migration on the housing market. The research delves into the research process, including problem definition, research design, sample planning, data collection, and data analysis. Data from various sources like government statistics and real estate websites are used to assess trends in homeownership, family composition, and employment status. The report concludes with recommendations for real estate developers, emphasizing the need for collaboration with the government, land acquisition, and addressing housing affordability to overcome market challenges. The report also discusses the importance of data and research in understanding consumer behavior and market dynamics.

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MARKETING RESEARCH OF REAL ESTATE DEVELOPER IN AUSTRALIA
Student’s Name:
Professor’s Name:
University’s Name:
City, State:
Date:
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Table of Contents
1. Introduction...................................................................................................................................3
2. The research process.....................................................................................................................3
2.1. Define the problem....................................................................................................................4
2.2. Planning the research design.....................................................................................................5
2.3. Planning the sample...................................................................................................................5
2.4. Collecting the data.....................................................................................................................6
2.5. Analysing the data.....................................................................................................................8
3. Conclusion....................................................................................................................................9
4. References...................................................................................................................................10
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1. Introduction
The Australian real estate developers have been facing major downward market for almost a
deacade. As per the information gathered from the Parliament of Australia and other relevant
sources, the price of housing in Australia has been increasing sharply since the year 2008 when the
world financial crisis broke out. As per the information of such sources, the population of Australia
has been increasing significantly. Apart from that, migration is another big problem in the economy
of Australia that affected directly the real estate industry. In order to meet the demands, the real
estate developers are struggling to meet the expectation and desire of common public. According to
the information of Real Estate Market Outlook 2019, the economic growth has been accelerated in
some sectors and rate of unemployment has been reduced to 5%. The construction and
manufacturing sector has been hit massively due to the uncertainty of geopolitical landscape of
Australia. On the other hand, the GDP growth of the country has been reduced from 3% in 2018 to
2.4% in 2019 that led to the uncertainty over some sectors such as financial, retail, construction. It
is expected that job cut in selected sectors that would lead the real estate sector to downward
position (Wolski, 2018).
The real estate data can be collected from the agencies of the Australian government and chamber
of commerce. The real data can be collected from reliable sources such as Australian Bureau of
Statistics websites, Australia’s only real estate website, on the house domain and many more.
2. The research process
There are many steps of the market research process that are mentioned below. The main
problem of the real estate sector and the recommendations are elaborated below.
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2.1. Define the problem
It is very urgent to discuss the current turmoil in the real estate sector of Australia. One of the
vital problems is that banking system is not as strong as expected. It is reported that during the last
couple of years, the interest rate has not been reduced. Therefore, household debt has been
increasing among middle and low income families. It is further reported that the value of residential
property rapidly increased from 2012 to 2017 leading such families oblige to mortgage (Krajewska,
2013). As per the recently released report from one of Australian financial institutions, that rate of
unemployment would be further increased that led to the mortgage stress at the higher level
(ITAGAKI, 2017).
There are many factors that act behind the turmoil of real estate industry in Australian market.
As per the research undertaken by the labor ministry of the Australian government, there is a
mismatch of housing price between the houses in capital market, especially the area close to public
transport and the regional markets. There are lack of opportunities to access the affordable housing
near the place of employment. As per the study, the participation of women is hampered due to long
distance between the workplace and home (Hoesli and Reka, 2015). As there is involvement of high
cost in housing and transportation in metropolitan areas, so the people of low income are forced to
choose their work in regional market (Peng, 2018). Furthermore, the regional market is a place
where the employment prospects are very low in terms of housing costs.
2.2. Planning the research design
The secondary data is important while doing real estate market research. The real estate sector is
part of an economy of every country around the globe. Therefore, the real estate industry can be
impacted directly by highs and lows in any economy. The current scenario of real estate industry
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should be corrected as early as possible by conducting the market research through collection of
secondary data (Çalışkan, 2017).The actual problem of real estate industry and specific
implementation process can be adopted by evaluating the secondary data. The current trends of
buying the property can be evaluated through thorough inspection of report, which is in general
published by country’s industrial body. The strict inspection of such reports enables the real estate
developers to identify strength and weaknesses of certain section of the industry (Birch, 2015). On
the other hand, the current population and its male-female ratio, working male-female ratio, their
current mindset of purchasing the house can be evaluated successfully by the specialist of real estate
industry. The government statistics and useful information coming from the real estate company’s
official website is crucial for analyzing the current situation of real estate industry (Newman, 2016).
2.3. Planning the sample
The entire marketing strategy is based on the secondary data, thus, the size of the sample would
be quantified on the same. The sample size is measured of a large pool of population including low
and middle-income families. The choice of apartment and location are also measured carefully. In
order to plan the sample successfully, several parameters were taken into consideration, such as
their choice of home, how much money they wish to spend for purchasing the house, area of
preferences, stability of their work and many more (Heller, Hannig and Leadbetter, 2015).
According to that, the members of SKY HIGH real estate developer would be able to fructify their
plan and strategy. The authority would be able to frame a solid plan for the industry in the days to
come by analyzing the secondary data as well as by discussing the availability of land with the
Australian government. Analyzing the sample enables the authority of SKY HIGH real estate
developer to understand the mindset of the people who are interested to buy their home. It can also
be identified whether they are interested to purchase the home close to their workplace or not.
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Sample planning enables them to understand more about the buyer whether they are interested to
buy home in suburban area or not (Boutilier et al., 2016).
2.4. Collecting the data
The real estate sector is boosted by the rapid enhancement of the population within an economy.
Therefore, the collection of data regarding households of Australian region is necessary for
evaluation of drawbacks in the industry (Gaca, 2018).
Landlord type 1994-95 2013-14
Own home with a mortgage 29.6% 31.4%
Own home outright 41.8% 31.4%
House is being rented from a private landlord 18.4% 25.7%
Renting from the housing authority 5.5% 3.6%
It is understandable from the above table that more Australians have possessed home than
20 years ago. The figure is excellent compared to the data of the year of 1994. However, owning
home with mortgage is higher than the figure of 1994-95. Therefore, the mortgage home represents
the current scenario of Australian economy as well as the disturbances of real estate industry
(Beręsewicz, 2014).
Apart from that, the education, composition of families and employment status are crucial in
the overall economic development of the country. As per the survey of the education department
and labor force, the data are framed below.
Family composition % of the total population
Couple with children 44.7
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Couple without children 37.8
Another family 1.7
One parent family 15.8
Highest education level % of the total population
10th 10.8
11th 4.9
12th 15.7
Certificate level III 12.8
Certificate level IV 2.9
Advanced diploma 8.9
Bachelor degree 22
Employment status % of the total population
Both husband and wife employed (full time) 21.7
Both husband and wife employed (part-time) 3.7
Both are not working 19.2
One employed full time, other does not work 15.7
One employed part-time, others do not work 5.4
One works full time and one part-time 21.4
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2.5. Analyzing the data
The present scenario of owning the houses is better compared to the figure that existed 20 years
ago according to the data of the table. The probability of renting homes from the private developer
has grown rapidly as compared to the 1994 data. As the price of the owning home has spiraled for
over the years, so the tendency of taking home on rent basis has gone up. Owning home by
mortgaging has slightly gone up by 2% from 1994 to 1995 session. Therefore, it is evident that
people are not in favourable condition to own their home comfortably so they are forced to own
their home on mortgage basis.
The composition of the family is another important component which drives and boost the real
estate industry. As per the table, 44.7% of the couple live with their children while 37.8% of the
population are childless. Therefore, there is slight increase in demand for real estate in the current
market. Despite slight increment in real estate market, the price is too high for the professionals to
buy. As per the figure of the table around 21.7% couple work for full time. If we look at the table of
education, then it would not poor condition anymore as 22% of the population are graduate. The
main problem is that bachelor’s degree holders are not treated well in the current financial market of
Australia.
The employment figure among the Australian population is quite astonishing. 21.7% of the
couple (husband and wife) work for full time, whereas 19.2% of the couple (both husband and wife)
are not working. The status of employment is quite visible across all the major cities of Australia.
Therefore, the real estate sector is massively hit by the slow rate of growth and rate of
unemployment.
3. Conclusion
The current situation in the real estate industry especially in the concerned company SKY HIGH
Real Estate Developer is poor as the demographic situation is not favorable and economic growth
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has been slowed down lately. However, there is ray of hope if combined collaboration between the
private real estate developers and Australian government happens as early as possible. To move out
from current turmoil of real estate industry, it is necessary to have large land bank and urgent need
for massive infrastructure. To improve housing affordability, more land should be released by the
government. As the suburban areas of the major city are mostly occupied by the government, so it is
the responsibility of the government to take step in providing the land. As the middle-income family
is growing rapidly, so the prices should be fixed reasonable and favorable to these families. If any
specific consensus occurred between this real estate company and government, then it would be
good news for both the home buyer and company. Therefore, the fixing of correct price enables the
company to draw more buyers in the days to come. Apart from that, the planning system is major
concern for the real estate developer across the country. The improper planning of the building
degraded the quality and quantity which ultimately led to the shortage of land. Therefore, it is
advised to all the developers to look into this matter when the planning of building is done.
4. References
Beręsewicz, M. (2014). Estimating The Size Of The Secondary Real Estate Market Based On
Internet Data Sources. Folia OeconomicaStetinensia, 14(2), pp.259-269
Birch, T. (2015). Review: Community Character: Principles for Design and Planning. Journal of
Planning Education and Research, 35(2), pp.225-227
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Boutilier, J., Craig, T., Sharpe, M. and Chan, T. (2016).Sample size requirements for knowledge-
based treatment planning. Medical Physics, 43(3), pp.1212-1221
Çalışkan, O. (2017). Parametric Design in Urbanism: A Critical Reflection. Planning Practice &
Research, 32(4), pp.417-443.
Gaca, R. (2018). Price as a Measure of Market Value on the Real Estate Market. Real Estate
Management and Valuation, 26(4), pp.68-77.
Heller, M., Hannig, J., and Leadbetter, M. (2015).Optimal sample planning for system state analysis
with partial data collection. Stat, 4(1), pp.69-80.
Hoesli, M. and Reka, K. (2015).Contagion Channels between Real Estate and Financial
Markets. Real Estate Economics, 43(1), pp.101-138.
ITAGAKI, K. (2017). Local Government and Problem of “Owner-Unknown Land”. The Japanese
Journal of Real Estate Sciences, 31(3), pp.9-16.
Krajewska, M. (2013).The Problem of Real Estate Research Area Selection for the Purpose of
Appraisal Process. Real Estate Management and Valuation, 21(3), pp.25-34.
Newman, G. (2016). Review: Research Design in Urban Planning: A Student’s Guide By Stuart
Farthing. Journal of Planning Education and Research, 37(4), pp.502-503.
Peng, L. (2018). Benchmarking Local Commercial Real Estate Returns: Statistics Meets
Economics. Real Estate Economics.
Wolski, R. (2018). Listing of Developer Companies as a Predictor of the Situation on the
Residential Real Estate Market. Real Estate Management and Valuation, 26(4), pp.12-21.
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