Market analysis exam

Question 1

Explain European settlement trends

Answer 1

• Began in 1788 when British established a penal colony in NSW
• The arrival of the first fleet marked the beginning of the European presence
• The colony relied heavily on convict labour (develpoment/farming)
• Free settlers were encouraged to migrate, leading to expansion across Australia
• Establishment of new colonies and the discovery of gold fuelled further growth and attracted diverse populations
• Disrupted Indigenous ways of life
• Today Australia is a multicultural society

Question 2

What is the historical rates of Australian Cash Rate

Answer 2

Australian interest rate averaged 3.84%

Question 3

What is the target RBA inflation range?

Answer 3

2-3%

Question 4

What would good economic market conditions look like in Australia? (the health of economic indicators)

Answer 4

Good economic market would conditions would illustrate a relatively low inflation rate at approximately 2-3%, with rising GDP, a max 5% NAIRU unemployment rate, low CPI but a high WPI

Question 5

What are the underly drivers of major Australian cities?

Answer 5

Population growth – overseas migration, Infrastructure development

Question 6

What is expected to fuel economic growth in Queensland?

Answer 6

One of the largest factors expected to fuel economic growth within QLD is the 2028 Olympic games being held in Brisbane. From this planned future event, infrastructure development has been boosted with anticipated of future population increases and tourism growth

Question 7

How does the economic cycle work?

Answer 7

The economic cycle, also known as the business cycle, refers to the natural fluctuation of economic activity in an economy over time. It involves alternating periods of expansion and contraction in aggregate economic output, which are measured by indicators such as GDP, employment rates, and investment levels.

Question 8

The four phases of the economic cycle

Answer 8

Expansion – economic growth occurs (illustrated by the rise in GDP, consumer spending and employment

Peak – peak of economic growth occurs (maximum growth occurred – the economy can only go down)

Contraction – the decline in economic activity (resulting in a decrease in GSP, employment and consumer spending)

Trough – the lowest point of the economic cycle (from here the economy can only go up)

Question 9

Do cycles for different sectors and investment types align?

Answer 9

The residential sector has its own influential factors such as population growth, housing demand, affordability, mortgage rates and government policies

Question 10

What is cumulative causation?

Answer 10

Cities become more attractive to immigrants, which creates demand for services and consumables, attracting jobs, then attracting more immigrants. Advantages or disadvantages have an effect on the growth of and economy.

Question 11

What is gentrification?

Answer 11

A poor area is changed by wealthier people moving in, improving the location and attracting new businesses.

Question 12

What is metropolitan primacy?

Answer 12

Cities that have a large presence in terms of the economy, political presence – exerting a disproportionate influence and concentration of power

Question 13

What is urbanisation?

Answer 13

The main land-use change associated with the shift from primary production (agricultural and mining) to tertiary production (manufacturing) to quaternity production (services and information) (Rural to urban)

Question 14

Intensity of Land Use?

Answer 14

Refers to the level of utilisation of land for a specific purpose. It measure the effectiveness and efficiency

Question 15

When should you redevelop?

Answer 15

You should redevelop when the value of the land in existing use in under the value of the cleared site

Question 16

How do planning controls impact the property market?

Answer 16

Planning controls such as zoning regulations and neighbourhood planning imacts the types of properties allowed to be developed in certain areas, the restrictions on density allowances and demographic types (e.g. higher value areas – inner city = higher property values – gentrification)

Question 17

Why is the Property Market not as efficient as other markets?

Answer 17

Due to the fact prices are set on the buyer and sellers opinions and circumstances, not just the market at large. Properties are an illiquid asset.

Question 18

What is monetary and fiscal policy? How do they interact?

Answer 18

Monetary policy addresses interest rates and the supply of money in circulation – Bank.

Fiscal policy addresses taxation and government spending – Government.

Question 19

What defines a recession?

Answer 19

A significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.

Question 20

What is a cash rate?

Answer 20

The cash rate is the interest rate that banks pay to borrow funds from other banks in the money market overnight

Question 21

What is Keynesian economics?

Answer 21

Keynesian economics focuses on the role of aggregate demand in shaping economic outcomes and emphasises the importance of government intervention to stabilize and stimulate the economy. The use of fiscal policy for example can be used to influence the demand for certain services through the implementation of stimulus checks

Question 22

Write a list of indicators for each sector

Answer 22

Rents: Applies to all sectors because with all property types property owners rent of the space

Vacancy: applies to all sectors as all property types experience vacancies

Yield: as all property types are investments the yield property indicator illustrates the

Incentives: commercial properties such as retail and office spaces offer incentives more so than residential and industrial properties because commercial property is highly competitive with tenants looking for the best deals to conduct business. Residential properties don’t usually have incentives, as it has different market variables such as location amenities and housing prices

Demand: there is demand for all property sectors

Supply: due to the demand for all property sectors, there is often new supply for these sectors

Question 23

What are the different types within each sector?

Answer 23

Residential: high-rises, low-rise, detached housing, town houses
Commercial: prime grade, second grade office and retail spaces
Industrial: prime and secondary grade

Question 24

What are the main considerations for each sector?

Answer 24

Residential: location, demand, supply, affordability, vacancy rates, rental yield
Industrial: location, functional requirements, market demand, supply, e-commerce
Commercial: location, tenant demand, incentives, rental yield, vacancy rates, leasing terms

Question 25

How are the properties within each sector classified?

Answer 25

Residential: single family homes, apartments/condominiums, townhouses, duplexes/triplexes, vacation homes

Commercial: office buildings, retail, industrial, hospitality, healthcare, educational, mixed-use

Industrial: warehouses, manufacturing facilities, distribution centres, flex spaces, research and development

Question 26

Key physical and locational attributes - Residential

Answer 26

Physical: number of bed and bath, floor area, amenities, appliances/flooring/finishes, energy efficiency and sustainability features

Location: proximity to schools, parks community areas, access to public transport and roads, safety and security of neighbourhood, nearby entertainment and dining, desirability of location in terms of lifestyle and reputation

Question 27

Key physical and locational attributes - Commercial

Answer 27

Physical: Total leasable area or rentable space, layout and configuration of the space, facilities such as escalators/loading docks, compliance with building codes and regulations

Locational: accessibility of customers, employees and suppliers, visibility to high foot traffic and vehicular traffic, proximity to other commercial establishments and businesses, availability of parking or transportation options for customers and employees, market demand and growth potential in surrounding area

Question 28

Key physical and locational attributes - Industrial

Answer 28

Physical: size and layout (floor area/ceiling height), clear space or column spacing for efficient storage and production, loading docks, truck access or distribution infrastructure, specialised features such as temperature control, heavy machinery support or ventilation

Location: access to transportation networks, proximity to suppliers, customers or distribution hubs, zoning regulations and land availability, infrastructure support for logistics, utilities or specialised industry needs, workforce availability and skills in local area

Question 29

Locations Theories

Answer 29

Von Thunen’s
Concentric zone theory
Axial development theory
Sector theory
Multiple nuclei theory

Question 30

Growth multiplier theories

Answer 30

The Keynesian model
Economic base theory
Urban hierarchy and central place theory

Question 31

Von Thunen’s

Answer 31

Von thunens location theory seeks to explain the spatial distribution of different land uses based on their proximity to the market and transportation costs.

The theory assumes an isolated state with a single central market and uniform, flat terrain

Question 32

Concentric zone theory

Answer 32

According to the concentric zone theory, cities grow outward from a central business district (CBD) in a series of concentric rings or zones. Each zone represents a different type of land use and exhibits distinct social and economic characteristics. The model assumes that land use patterns are primarily influenced by factors such as transportation, land values and competition for space.

Question 33

Axial development theory

Answer 33

A concept used in urban planning and urban deign to guide the development and organisation of cities along transportation corridors or axes. The model emphasises the importance of linear infrastructure, such as roads, transit lines, or rivers, as the backbone or axis for urban growth and development

Question 34

Sector theory

Answer 34

As an alternative to the concentric zone theory. The sector theory explains the spatial organisation of cities based on the sectors or wedges of development radiating from the central business district.

According to the sector theory, cities grow in a pattern characterized by the expansion of various sectors or corridors along major transportation routes, rather than in concentric rings.

Question 35

Multiple nuclei theory

Answer 35

An urban growth theory that suggests that cities are not organised around a single central business district but rather around multiple canters of activity or nuclei.

According to the multiple nuclei theory, cities are complex and dynamic systems with various specialised centres that emerge and interact with each other. These nuclei can be influenced by factors such as transportation, land availability, socio-economic characteristics, and historical development patterns.

Question 36

The Keynesian model

Answer 36

The Keynesian model, named after the economist John Maynard Keynes, is an economic theory that focuses on the role of aggregate demand in determining economic output and em0plyment levels. The model suggest that fluctuations in aggregate demand, particularly in times of economic downturns, play a significant role in shaping the overall economy.

Question 37

Economic base theory

Answer 37

An economic concept that explains the dynamics of regional or local economies. According to ths theory, regions or local economies have two sectors: the basic sector and the non-basic sector. The basic sector consists of industries that produce goods or services primarility for export or trade outside the region, whhle the non-basic sector produces goods and services consumed within the region.

Basic activities – those industries producing goods and services for outside demand.

Non-basic activites - goods and services produced by the inhabitants of the urban area only

The size of an urban area depends on the amount of goods and services being supplied to outsiders “exports”. The growth of basic activities is seen as the dominant cause of urban growth.

Question 38

Urban hierarchy and central place theory

Answer 38

Urban hierarchy refers to the ranking or ordering of cities and towns based on their size, function, and importance within a regional or national context. It recognizes that not all cities are equal in terms of population, economic activities, infrastructure, and services. Instead, cities tend to form a hierarchical structure with larger and more influential cities at the top, and smaller towns or cities at the lower levels. The urban hierarchy reflects the varying degrees of urbanization, economic development, and regional importance within a geographical area.

Question 39

What is the difference between a growth multiplier theory, pattern of growth theory, economic base theory, etc

Answer 39

Growth multiplier theory: focuses on the idea that certain industries or activities in an urban area can generate positive multiplier effects on the overall economy
Pattern of growth theory: refers to theories or models that explain the spatial patterns or forms of urban growth. It explores how cities expand, develop, and organise their land uses overtime
Economic base theory: also known as the Export Base Theory or Location Theory, focuses on the economic structure of a city or region

Question 40

Cumulative Causation

Answer 40

An economic concept that describes a process in which small initial changes in an economic system can lead to increasingly larger effects and disparities over time. It is often associated with regional development and the growth of industries or economies.

In the context of cumulative causation, positive feedback loops play a central role. The initial advantage or development in a specific industry or region created positive feedback mechanisms that lead to further growth and accumulation of resources, capabilities, and advantages. this, in turn, attracts more investment, skilled labour, and other resources, reinforcing the initial advantage and creating a self-perpetuating cycle of growth.

Question 41

Acknowledgement vs Welcome to Country

Answer 41

An acknowledgement of country is a statement or act that acknowledges and pays respect to the traditional owners of the land. It Is a way to recognise the enduring presence and contributions of Aboriginal and Torres Strait Islander peoples to the land.

A welcome to country is a traditional ceremony performed by aboriginal and Torres strait islander peoples to welcome visitors to their traditional lands. It is a formal protocol that is typically conducted by an Elder or traditional owner of the land. The welcome to country involves storytelling, dance, music, and cultural protocols to extend a warm and official welcome to visitors, acknowledging their presence and fostering a sense of respect and connection to the land and its indigenous heritage.

Question 42

Cultural Heritage from Indigenous Perspective

Answer 42

From an indigenous perspective, cultural heritage holds deep significance and is an integral part of identity, spirituality, and community for Aboriginal and Torres Strait Peoples in Australia. It encompasses a wide range of elements, including land, language, song, dance, art, storytelling, ceremonies, ancestral knowledge and connection country.

Question 43

Cultural Heritage laws, database and register

Answer 43

One of the cultural heritage laws include – Aboriginal cultural heritage Act 2003

Cultural heritage database and register

Aboriginal and Torres Strait Islander Cultural Heritage Database and Register

The purpose of the cultural heritage database is to:
- Assemble information about Aboriginal and Torres Strait Islander cultural heritage in a central and accessible location
- Provide a research and planning tool to help Aboriginal and Torres Strait Islander parties, researchers and other persons assess the aboriginal and Torres Strait Islander cultural heritage values of particular areas

Question 44

Property council of Australia reconciliation Action plan

Answer 44

A reconciliation action plan is a strategic document that outlines an organizations goals, strategies, and actins to foster reconciliation between indigenous and non-indigenous Australians. It typically includes initiatives such as cultural awareness training, employment and procurement opportunities for indigenous Australians, community engagement, and partnerships with indigenous organizations.

Question 45

Waterfront Brisbane Precinct Evolution

Answer 45

The waterfront precinct was home to many tribes including the Turrbal and Jagera people
Two local creeks roughly defines the extent of the Waterfront site at the time of European settlement. Big (wheat) Creek (which eventually became creek street) to the north was the larger creek extending back across towards the western bank of the city, while little creek located to the south was a minor system.

Question 46

What is Quantitative and Qualitative data?

Answer 46

Quantitative data is the collection of numerical data, specifically, data which illustrates the extent or presence of something e.g. demographics

Qualitative data is the collection of informative data e.g. notes, observations, transcripts

Question 47

What is Primary and Secondary data and why/when would you use it?

Answer 47

Primary data is data obtained directly from the source while secondary data is data obtained from the person who obtained the primary data. The different types of data is used for various situations, including the type of document being created, the availability of current data

Question 48

What are the different data collection methodologies and when would you use them?

Answer 48

Surveys – used when you want info such as opinions, attitudes, demographics

Interviews – collected from a smaller group of participants who can provide an in depth discussion on a certain topic

Observations – this data collection method is used for information regarding description, behaviour (how they felt), interactions

Experiments – used in a conditioned setting to obtain specific results based on a hypothesis

Case studies – in depth examination on a specific individual group, organisation, or situation. It is used to gain a deep understanding of specific content

Document analysis – useful for studying trends, policies, historical events and other already available data

Question 49

Why and how do you use multiple data sources for research?

Answer 49

You would use multiple data sources to provide an array of data to illustrate/prove the concept/information you are writing about

Question 50

How do you select suitable data analysis tools?

Answer 50

Understand your research objectives and what type of data you want to analyse

Understand the data characteristics that will be best used (qualitative or quantitative)

Determine analysis techniques

Will the analysis require costs (program licensing)

Question 51

What presentation methods would you use and why? (Charts, line-graphs, pie-chats, scatter- lot, histogram)

Answer 51

When using certain data there are an array of prestation methofds to choose from, including – line graphs, pie charts, histograms. Its important to know which graph is the best option to use.

Line graphs, for example, illustrate and compare different data against the same axis (cost against years)