Essay about Demand and Supply for Housing Market in Epping

2302 Words Apr 26th, 2012 10 Pages
EXECUTIVE SUMMARY

The objective of this report is to outline the reasons as to what of the difficulties facing Sydney’s property market and analyse how the relationship between demand and supply influence Sydney’s housing market. This report will also evaluate the recent and future trends in Epping housing market. The outcome of this report will be submitted to the local government in order to provide recommendations in ways to improve the Epping area housing market.

Introduction and structure to the housing market

1. Sydney’s housing market focusing on Epping
1.1 The level of demand and supply in Epping

2. Recent and future trends in Epping housing market

3. Factors influencing demand side of Epping housing
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This table supports the argument that immigration is on the up, and if supply on housing is not met, even higher property prices could well be expected.

Another trend that may affect the housing market in Sydney or Epping for that matter could be the prices of shares in the stock market. Investors, depending on the prices of shares may help to push up or push down the prices of houses.

As the graph below illustrates, in 2010 the prices of shares has been rather lukewarm, which could indicate that investors might choose to invest in the housing market instead, helping it to push prices up in areas like Epping. Thus, depending on the future trend of the stock market, the housing market may also be influenced by it.

[pic] This graph shows the pattern of the last 5 years of the All Ords index http://markets.smh.com.au/apps/mkt/interactiveChart.ac?idx=XAO

The future trend for Epping housing market seem to point to even higher property prices due to the proposed rail link between Parramatta and Epping. In the midst of the election battle, the now Prime Minister Julia Gillard made the pledge to inject 2.1 billion dollars into the Parramatta–Epping rail link which should save commuters 25 minutes of travel time between Chatswood and Parramatta. Construction will begin next year and have a projected finish for 2017. This will be a significant project for the area in that it should have a desirable effect in terms of public

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