Housing Prices in Australia Research Paper Example | Topics and Well Written Essays - 2500 words

Housing Prices in Australia - Research Paper Example The headline says: "Government policies, charges 'stifling' housing growth." The report says that "the Property Council of Australia is warning of a looming housing shortfall as prices and taxes increase." The surge in median house prices in the last seven years has shut many people out of the market, ABC News quoted the Council as saying. The report however is on Western Australia and not on the whole of Australia, but still there has to be concern to avoid a possible downturn. From a stable property market, there is a trend of slowing down due to circumstances or causes that are the primary focus of this study. However, the situation may not be serious. The causes will be enumerated in the literature review. Property market in Australia is a major source of wealth creation for investors, contributing to the socio-economic well being of all Australians. The Real Estate Institute of Australia states that in the financial year 2005/2006, property sales totaled $186.1 billion. The Institute further said that 67% of Australians owned their houses and 28% rented on the private market. Property affects everybody in Australia. Those who are renting their houses and those who own their houses are a subject of surveys by the prominent institutions in Australia and even from outside Australia. Over the pa The Real Estate Institute of Australia follows and conducts studies and trends in the real estate business in Australia. It is the national professional association for the real estate industry. Over the past years, right after the 1991-1992 economic recession, there has been a stable residential property market in Australia. But there is a growing defect that the Property Council of Australia has warned in its latest press release. This pertains to the higher taxes imposed by the government. 3.0 Purpose and Objectives This study will examine the underlying growth on the property market of Australia and the impact of the higher taxes. Surveys conducted by prestigious organizations like Standard and Poor's and Real Estate Institute of Australia and other similar organizations that have stakes in the property market have revealed a steady growth. This was recorded over the past 35 years by Standard & Poor's and the years preceding the 1991-1992 economic crisis. We will also study the present policies of government over real estate and their imposition of charges and taxes, whether these taxes or fees are bearable by the general public. The people who are at stake here are those who own or rent their houses. Following are the questions to be answered in the study: 1. Is the stable growth registered by the property