Question

Give a discussion about the demand and supply conditions for your product or service.( Ray White- Property, Rental,Hiring and Real State Services)

Answer 1

Ray White is an extremely popular and prominent real estate company or enterprise which operates over several countries such as Australia, New Zealand, Indonesia, China, Hong Kong, the Middle-East, and parts of the USA. It was established in 1902 in Queensland, Australia, and has its main headquarter in the same country as well. The company widely specializes in various product categories mainly including residential, commercial, and rural real estate properties and also hotels, marine properties, property management funds, and investment schemes, and so on. Now, as reported by various government and public agencies both at the state and the federal level, an overall economic slowdown mainly in Australia, which is the chief country of operation and origin of the company, the overall capital or business investment in the real estate sector has relatively decreased in the last few years with a downturn in capital investment on new commercial properties and residential lands which has adversely affected the new construction projects and development of commercial projects by the company. This has affected the overall supply level of various commercial and rental properties by Ray White in Australia. However, during late 2016 and early and mid-2017, the domestic market demand for the real estate properties in general increased dramatically and the market experienced a remarkable rebound or recovery with specifically higher demands registered in the urban areas and outskirts of Sydney and Melbourne. The Gold Coast in the western part of the country and some regions of New South Wales also exhibited significant demand growth and all of which, subsequently resulted in the biggest sales revenue of the company during the fiscal year 2016-17 which was nearly four percent higher than the previous fiscal year. The overall ascendancy and improvement of the consumer demand situation pertaining to both the business/commercial and residential rental and private properties in the entire Australiasia during the last couple of years have also significantly contributed to the company's higher profitability and higher customer or client satisfaction through product quality enhancement. The supply level of the commercial or business rental and private properties improved considerably by the end of 2017 compared to its initial slack during much of the 2015 fiscal year. In recent times, the company management has invested mostly on highly mechanized and advanced group technology platforms to improve or revolutionize the architectural operations and designs of the properties and customer service processes or mechanisms to enhance customer/client value and convenience. A higher consumer demand for both business/commercial and private residential properties in the Australiasia region mostly has also increased the property values or market price in the coastal and urban regions targeting towards business/commercial rentals and private offices and the company registered a staggering 10% increase in the yearly profit during the 2016-17 fiscal year compared to the previous fiscal year. The real-estate boom or growth continued during the 2017-18 fiscal year capitalizing on the increasing trends in demand in the urban and coastal regions of Australia and parts of New Zealand but however, the onslaught of COVID-19 outbreak has recently slowed down or exacerbated the overall market situation to certain with a relatively lower overall consumer demand in the real estate market and a fall in the private investment level, thereby affecting the supply level as well which has led to a present market downturn from a general standpoint. However, consumer confidence is expected to rise as the pandemic outbreak becomes gradually weaker and the market would expectedly recover to rebound back to its pre-epidemic phase.

References

https://www.raywhite.com/ray-white-group-reports-record-sales/

https://raywhitecommercialgoldcoast.com/news/what-a-recession-could-mean-for-commercial-property