Holmes Institute: Marketing Research Report on Sky High Real Estate

This marketing research report analyzes the Australian real estate market, focusing on Sky High Real Estate. The report utilizes secondary data to examine the current state of the industry, including issues such as declining property prices, government regulations, and the impact on investment. It explores the importance of secondary data, sampling methods, and data collection techniques. The analysis section delves into articles discussing the cooling housing market, investment perspectives, and the 2018 real estate industry outlook. The report provides recommendations for government officials and real estate developers and concludes that market research is crucial for developing effective future strategies. The report highlights the need for flexibility in regulations, property maintenance, and employee well-being within the industry.

Running head: MARKETING
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sky High Real estate
Market Research
Report
Student
8/14/2019

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Executive Summary
Market research is a process of evaluating the existing market so that companies can develop
market strategies, and efficiently attain long term and short-term goals. SKY HIGH real estate
developer has conducted a research to determine the actual status of the household and restate
estate industry in Australia. In this report, market research is conducted through secondary data,
which will be further discussed in the report.

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Contents
Introduction............................................................................................................................................2
Issues prevailing in the Industry........................................................................................................2
Importance of secondary data................................................................................................................5
Planning the sample...............................................................................................................................6
Collecting the data.................................................................................................................................7
Analyzing the Data................................................................................................................................9
A. Australia’s housing market cooling sharply..............................................................................10
B. Investment Perspectives: Stock in focus - Scentre Group.........................................................11
C. Special Report: 2018 real estate industry outlook.....................................................................12
Recommendations and Conclusions....................................................................................................13
Bibliography........................................................................................................................................15

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Introduction
There was a time when Real estate industry was considered as a most prioritized part of
Australia. However, in today’s business environment it has been undergoing with fluctuations
and uncertainty, even in the strong market, the residential and commercial buildings prices have
been declined by 60%. One of the major reasons of such slow and unreliable market is the
intervention of government authority where they have established trade-cooling reforms, strict
rules and regulation related to the investment plans (Dean, 2019). This has led to the huge loss
to the real estate developers as construction workers have lost their job due to recession.
Moreover, due to unhygienic workmanship also resulted in heavy loss to the property developers
due to reduction in the purchasing power of the customers’. Due to such disturbance, real estate
companies are now focusing to bring modifications in their marketing strategies so that they can
effectively use the resources, which will eventually reduce the employee turnover. Therefore, to
understand the changes in the real estate industry in Australia, and to analyze the demand among
citizens, secondary method of collecting data is adopted.
Issues prevailing in the Industry

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Australia’s construction industry is suffering from chaos, as there is a tremendous downfall in
the housing properties. The prices of residential properties has declined by 60% with the
formulation of various investing policies by the government officials, there has been decline in
the foreign investment in the properties of Australia. Due to the imposition of tax and such
restrictions, the scope of commercial properties has become limited (Reiwa, 2017). Moreover,
lack of proper dwellings and workmanship has also resulted in a decline in the prices, as they are
not meeting with the expectations of the customers. Due to the restricted regulation formed by
the government , real estate companies in Sydney and Melbourne are facing challenges in
commencing the business as companies are not able to sell the properties on time and less
demand in the market (Deloitte, 2018). Due to a decline in the residential, commercial and
industrial rates, the market is already flooded with the well-furnished buildings and houses,
which has resulted in a reduction in the construction of the building (Ryan, 2019). All this issue
has resulted in employee turnover (Dean, 2019).’ To analyse the market, secondary method is
adopted in the further report
Figure 1
Source: (Murphy , 2019)

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Figure 2
Source: (Nextgennews, 2019)
A. Importance of secondary data
Secondary data means the information collected by the second person rather than the user. This
time- efficient method is generally is used to collect accurate quantitative data. Moreover, it
creates an opportunity for the researches to utilize the large-scale data for study so that, he/she
can accurately conduct research (Johnston, 2014). This method of collecting data is commonly
used in market research, which can be obtained through government bodies like housing,
community security, and social networking sites or from libraries. It plays a vital role as it assists
the companies in analysing the volume of demand in the market. Besides this, it provides an edge
to the primary data so that it can be more definite and simple. In the industry, secondary data

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plays a crucial role as it directs the real estate developers to analyse the population rate, growth
opportunities, shift in the demand and reforms of the government.
B. Planning the sample
Sampling is a procedure, which is adopted by the companies, in which the research team of the
company selects the respondent from the community. Sampling method is used to describe the
secondary information gathered by the company through different graphs and charts (Johnston,
2014). Moreover, to perform the survey or any kind of research study, sampling can be done
through two different techniques, that are non-probability and probability sampling. In this
market research report, the non-probability method is used to conduct in-depth research so that
the sky developer estate can effectively analysis the demand and supply in the market and
forecasts the future of the industry. In this technique's the sampling method is implemented
where the data is collected as per the suitability and available opportunity.
To gain consumer and market insights 3 main articles are selected as a sample size. These
articles are selected after reviewing a wide range of articles that are clearly defining the issues
that the current real estate developers are facing and market conditions that might affect the
future strategies of the company. All 3 articles are further discussed in the Analysing the data
part. The articles are
i. Australia’s housing market cooling sharply
ii. Investment Perspectives: Stock in focus - Scentre Group
iii. Special Report: 2018 real estate industry outlook

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C. Collecting the data
To conduct the research and analyse the prevailing market, a secondary method of collecting
data is adopted. Secondary data is gathered from the research articles, journals, surveys that are
provided by another party. If the researchers utilize such information, then the data converts into
secondary data for the present user. A wide range of sources is available in the market through
which the research analyst can easily access the information. Secondary data is a core element of
study as it provides insights about the current situation of the market (Johnston, 2014). It is very
beneficial for the company as information can be easily available at an economical rate.
Moreover, it provides accurate and comprehensive information through the scholar, which is
written by professors or doctors. It assists the companies in time management and creates value
for the study. However, the data or statistics’ collected by the companies are not reliable as it is
collected by the other party so its accuracy is not clear.
Therefore, before adopting this method in the research process, various precautions should be
taken related to the data, its reliability, and patent rights. `
D. Analysing the Data
It is one of the most important parts of the research as, through the analyses, companies can
easily determine the prevailing market conditions and make modifications in their market
strategies. In this, the analysis is done over articles that are discussed below.

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I. Australia’s housing market cooling sharply
Figure 3
Source: (Delmendo , 2018)
It is observed that after the bullish market for more than 6 years, real estate prices are now
declining sharply, due to the establishment of marketing cool measures, which involves rigorous
rules which have restrained the scope of the lending system and have imposed high duties on the
foreign deal in the real estate industry. Besides this, there has been a tremendous downfall in the
housing prices in major cities of Australia. According to the Australian Bureau of Statistics, there
has been a significant drop of 0.27% in the second quarter of 2018, which is further lead to 0.6%
in the quarter of 2018.
II. Investment Perspectives: Stock in focus - Scentre Group

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Figure 4
Source: (Bennelongfunds, 2018)
In spite of such breakdown, the growth in the population has helped the economy in bringing
stability in the fluctuations of the real estate price. According the statistics of G20 nations ,
which is an international forum for the central and government from 19 countries stated that,
Australia is a third fastest growing country with the average growth of 1.5 % p.a. over the last 2
decades. Due to which there has been increment in the consumption level, which has eventually
widened the scope of proprietor and e-commerce industry.

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III. Special Report: 2018 real estate industry outlook
Figure 5
Source: (Sederstrom, 2018)
In 2018, it was assumed that the following year would be the turning point in the retail industry.
As a low-interest rate and high demand had provided a positive outlook to the investors and
builders. Moreover, in 2018 it was expected that the housing prices would rise and provide a
better flow of demand and supply. However, sudden fluctuations in the demand and excessive
supply have change direction of the industry (Rogers & Koh, 2017)
E. Recommendations and Conclusions
From the above situation, it can be recommended that:

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A. Government officials must adopt flexibility while dealing with foreign investors and
should not impose strict rules so that the investors can get opportunities and they buy and
sell properties on the regular basis (Rogers & Koh, 2017).
B. Real estate developers must lay prior attention to the maintenance of the properties so
that customers do not lose their interest. There should be a proper dwelling, which can
provide maximum satisfaction (Wake , 2018).
C. Due to the problems in the real estate industry, employee turnover has major concerns
for companies. Besides this, the disproportionate supply of properties about demand has
forced employees to move out of work. Such deviation can be reduced if the companies
evaluate the market before commencing the construction of the properties and put less
pressure on the employees and ensure their safety (Lasker, 2019).