Sunday, May 12, 2019

Independent Review of the Housing Market in Sydney Essay

Independent Review of the Housing Market in Sydney - Essay Examplei. In examining the overriding structure of the Sydney house market a deem of luminary points were discovered. Recent shifts in the Sydney housing market have had substantial implications for the structure of real estate sales. In this context of understanding, there have been recent shifts in the type of economic structure exhibited in the Sydney housing market. Bell (2011) indicates that for many years the Sydney housing market wavered between perfection competitor and monopolistic competition as middle class citizens participated in a market with big corporate entities that operated in larger scale real estate. However, with the recent economic recession, coupled by social and economic shifts, increasing verse of citizens have been restricted from entering the housing market. Its been noted that, Australia, once the exemplar of modestly priced, high-quality materialistic housing, to now the most unaffordable housing market in the English-speaking world (Zappone 2011). Within this context of understanding, its noted that the Sydney housing market has increasingly shifted towards an oligopoly, as the only individuals able to gain market rag are corporate entities with substantial sums of money, or upper class individuals. ii. There are a number of elements that characterize the real estate auction sales in the Sydney housing market (Bidders Guide, 2011). In terms of joint or private value auctions, the auctions are private in that the agent is not permitted to show the Bidders tape to anyone. In terms of sealed and open program lineding, the bidding is open as the auctions are generally open, barely that individuals moldiness disclose their name, address and proof of identity to the selling agent. The bidding method is such that individuals bring to raise their hand and let the auctioneer know they are going to make a bid. The achiever is determined by who bid the highest, but the auctioneer has the ability to reject bids that might not be in the marketers interest. It terms of price the buyer pays the price for the auction, and is required to pay a 10% deposit immediately upon winning the auction. iii. There is a process where buyers push aside potentially purchase items prior to auction. This process occurs as individual buyers submit prices for bid before the auction goes up for sale. The auctioneer then has the ability to accept or decline these auction prices according to the sellers interest. If several bidders submit an auction bid prior to auction, then the auctioneer has the option of choosing the bid in terms of the sellers interest. There is also a reserve price that must be met in order for the auction to be sold (Bidders Guide, 2011). iv. There are a number of recommendations that have been do regarding potential changes in regulatory practices in auction that could be made to improve the NSW real estate market. The current system functions t o withhold certain information after the auction. In these regards, the auction purchaser is not revealed to other participants. In this auction environment, the lack of transparency makes it possible for sellers to conjure in an environment that promotes an oligopoly in the housing market through restricting sales to potential buyers. As Zappone (2011) notes, the Sydney housing market has become the third most expensive in the world. Through increasing

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