Australia Housing Market - Admission/Application Essay Example

Sydney, the capital city of Australia is considered to range second in terms of cities with costly housing system, a situation which has caused much concern among the inhabitants. This paper aims to deal with the subject of house ownership in Sydney Australia and mainly addresses issues to do with as the market structure and real estate auctioning in the city Australia Housing Market. Sydney’s housing systems is among the world's most expensive housing systems. This situation has lasted for quite some time (Michael, 2008 1).

Different sections of the city attract varying house prices, which is an ownership factor that has greatly affected the potential buyers who like the media are obsessed with this subject. Structures erected closer to the city are more expensive than those in the outskirts and get to the extent of four times as costly as the latter. Significant infrastructural development in some specific regions has seemed to attract considerably investment in the areas. Competition for housing is rather hinged on the buyers and not the developers who far from not completing housing projects as desired by the clients seem to access ready customers in the vast Australian housing market.

The rate of population growth in the country has for sure outweighed property development and the upsurge in the number of immigrant have not helped reduced the burden in any way. These are among the factors which have made house prices in Australia and more so in Sydney very expensive. The state of oligopoly is thus perfectly present within this city. With regards to perfect competition and monopolistic competition, the housing market faces both situations since it is likely that one seller is approached by many buyers and not the other way round.

The shortage in housing systems as compared to the growing population is responsible for this. Real estate auctioning in Sydney follows strict procedures, which help ensure the buyers capability to purchase the property. Before an individual is allowed to bid for a property at auction, it is mandatory that he/she registers with the auctioning agent who keeps the client’s details confidential. Generally, property auctioning in Australia is public as the bidders display their registration cards in the process of bidding.

They use the open ascending bidding process where the prospective buyers bid one against the other with raising the price overtaking their predecessor’s offer. The starting price is usually set at a minimum by the auctioneer and the highest bidder gets to buy the property at auction. Selling items before the real auction is an occurrence that happens in some cases, a procedure which allows vendors to dispose off their properties earlier than planned. This procedure basically involves the hidden process where an auctioneer sells a product at a better price especially when a buyer gives a good offer before the actual day.

The essentially approaches the vendor and makes an offer, better than what would possible be made at the actual auction. The auction might therefore, be cancelled considering the pact made by both parties that is, the vendor and the buyer. In some cases, the buyer gives some form of down payment, which makes it impossible for the other bidders to outdo him during the real process. This may make the whole auction process consequently end up as a formality as the highest bidder