Question

Discuss the current state of the apartment housing market in Strathfield South, Sydney, identifying the drivers of this development growth. Include any capital market issues (e.g. credit availability and exposure, interest rate expectations, potential tax changes) that you think may impact the market in your discussion.

Answer 1

CURRENT STATE OF APARTMENT HOUSING MARKET

A} IN STRATHFIELD SOUTH

The property investment such as apartment housing did not perform well in the last year scenario. And it was against the general trend of country. The median home price has marked a decrease of -4.00 percentage in the last report. And the capital gain of the real estate business has also marked a steady fall in the profit generated by these people. Almost one third of the population depends on the rental homes for their stay. And the median rental price for a week is almost $700 and the rental yeld accounts for a 1.5 percentage.

B} IN SYDNEY

While considering the apartment market in Sydney, we are clear that the apartments in the city are getting more and more expensive at any instant. The median housing price has reported a rose of three percentage when compared to the previous year. The new policies enacted enhance this scenario. When it come to new apartments , the buyers are more concerned on it and the sellers has to clarify these concerns to a clear number to enrich their business.

The main factors which drive this housing market includes, economic growth, mortgage availability, interest rate, consumer confidence, and supply. The housing market will flourish if there record an increase in the income of people, and only in such condition the investment to buy the house will increase. The interest rate has also a major impact over the industry. And also the difference in the demand and supply will also impact this. The geographical factors also have a great influence over this housing market. And also the equilibrium to maintain between the earnings and the price of apartments is also important. These are the major factors which drive this particular market.