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 housing grocery a number of notable points were discovered. Recent shifts in the Sydney housing market set about had substantial implications for the structure of real estate sales. In this context of understanding, there have been late(a) 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 disputation and monopolistic competition as middle class citizens participated in a market with larger corporate entities that operated in larger scale real estate. However, with the recent economic recession, coupled by social and economic shifts, increasing numbers of citizens have been restricted from entering the housing market. Its been noted that, Australia, once the mannequin of modestly priced, high-quality middle-class 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 access argon corporate entities with substantial sums of money, or upper class individuals. ii. There be a number of elements that characterize the real estate auctions in the Sydney housing market (Bidders Guide, 2011). In terms of common or private revalue auctions, the auctions are private in that the agent is not permitted to show the Bidders Record to anyone. In terms of sealed and open cabalding, the bidding is open as the auctions are generally open, except that individuals must disclose their name, address and proof of identity to the selling agent. The bidding method is such that individuals need to raise their hand and permit the auctioneer know they are going to make a bid. The winner is determined by who bid the highest, but th e auctioneer has the ability to reject bids that might not be in the sellers interest. It terms of price the buyer pays the price for the auction, and is required to pay a 10% deposit direct upon winning the auction. iii. There is a process where buyers can potentially purchase items prior to auction. This process occurs as individual buyers enclose 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 qualification 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 make regarding potential changes in regulatory practices in auction that could be made to improve the NSW real estate market. The current system functions to w ithhold certain schooling 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 collude 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