Marketing Research Assignment Help
Introduction to Marketing Research
Businesses make their investments based on proper planning facilitated by understanding of the present and future market factors. In the real estate industry, demography is a principle factor that shapes investment. SKY HIGH Real Estate Developers faces a challenge in understanding the Australian demographics to aid its planning for present and future investment. The company requires data related to the size of household, age of household members, and family income. Therefore, the firm must access population data and projection to plan its investment on the type of house to build. The data to use in the planning on the kind of property in demand today and the future will be collected from secondary source. The secondary sources in this study include data from Australian Bureau of Statistics, 4442.0 – Family Characteristics and Transitions, and other credible sources with demographic data on Australia.
The research Process
Define the Problem
Housing is an essential industry influenced by population. Since population is a changing element, the demand for houses changes with a change in population’s size, preferences, interest rates, rent, and prices. Companies in the real estate sector rely on demographic data and projections to plan for present and future development. The Real estate growth is highly dependent of the demographic trends, as changes in population, family size and income can affect the future of real estate sector in substantial manner. SKY HIGH Real Estate Developers cannot make any future plans for investment without demographic data to understand its composition and other factors that will influence the housing sector. Obtaining population data will help the company in determining the type of houses, prices and rent. The required data should capture the present household income and wealth, employment status, family size, and age of the household members. The income parameter will help in determining the pricing strategy, while the size and age of the family and its member influence the type of house and the amenities to include. For example, if the household has an elderly or disable person there are construction standards to meet to ease their movements.
Planning the Research Design
The study will use secondary data since it is easily available and cost effective. Additionally, it is impossible to collect primary data on the subject since we do not have the resources and expertise to conduct a nationwide data collection. Projecting national population trends requires the use of experts, resources, and confidential data that is outside the access of this research. The collection of population data is conducted by the Australian Bureau of Statistics and the projection of the population are calculated by the Australian Bureau of Statistics and the United Nation.
Planning the Sample
The data obtained from Australian Bureau of Statistics has mainly addressed the whole population with an aim of identification of demographic trends of Australia. It indicates that research was more of census, than sample based study. Additionally, the overall data for Australian demographics and households is aggregate of the data for different states of Australia. It shows that data is highly inclusive and it is highly dependable for analysing the expected real estate trends of Australia.
Collecting the Data
To provide an accurate projection based on data, the research collected different types of data including changing demographic and social trends. The data collected include the national population size, family size, family composition, family income and wealth.
In the next 20 years (by the end of 2039), national population size is projected to be 33.5 million people. The annual growth rate of population of Australia is 1.6%[1]. This is population estimated from immigrations and natural increase (births-deaths)[2]. The data on ageing population is expected to be high over the next 20 years due to sustained low fertility and increasing life expectancy[3]. This implies that the number of the elderly (65 years and above) will be high. The size of the family is expected to be small comprising of four members as the fertility rate holds at 1.7. The family size is projected based on the assumption that the fertility rate is constant and households are made up of a nuclear family with both parents. Based on 2012 population data, we can project that a majority of people, 88%, will be living in households[4]. The total household weakly income for Australian household is expected to be sustained at $ 1, 234. Based on 2011 data the family composition, couple family with children was the majority, 44.6%. [5] Most households will have elderly women given that the mortality rate for men is high. In 20 years’ time the baby boomers (born 1946-1964) will be in the elderly group[6]. The number of persons living alone is expected to sustain at 9% of the population and families with non-dependent children to be higher than those with children aged between 0-17.
Analyzing the Data
The family is expected to become smaller in Australia, as people now prefer to have less children. This trend indicates that SKY HIGH Real Estate Developers needs to consider aspect of family size in its future real estate strategies. For instance, given the size of family town houses are likely to be more demanded by people, which requires the company to incline more towards small houses development to address the needs of small families.
Increasing elderly population, as result of enhanced life expectancy shows that overall population of Australia is increasing.[7] Additionally, increasing immigrant and new births are also adding up in population growth of country. This increase has clear implication for real estate sector in terms of growth rate and SKY HIGH Real Estate Developers needs to formulate strategies through which it address the growing housing needs of its target segments. Moreover, the increase in elderly population rate calls for consideration to their differentiated needs related to design and structure of households. For instance, they might not be willing to climb stairs and need more airy and spacious houses to get relax.
Retirement of baby boomers is another identified trend in demographics of Australia,[8] indicating that this population group will be willing to transfer in areas which are less crowded. The inter-regional migration trend is thus expected and SKY HIGH Real Estate Developers needs to focus on areas which are slightly away from urban and commercial areas. The prices of countryside real estate are always less than that of urban areas, yet increased movement of baby boomers to the countryside might escalate real estate prices of these areas. Thus, profit earning opportunity will be substantial for SKY HIGH Real Estate Developers.
The average level of weekly income has also increased, which is $1,234.[9] It indicates that with increase in income level, population will seek for stability and housing will be their preferences. Likewise, individuals will also be willing to pay more rents for places which are comfortable and easily approachable from work. This trend will escalate the property prices of urban areas and more development will be needed. SKY HIGH Real Estate Developers can focus on urban development as well as an effort of making more profits. Likewise, it can consider developing apartments which could meet the needs of population group who are willing to live alone, which is currently sustained at 9%.
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Formulating Conclusion
The research was conducted to identify demographic trends of Australia, such that its impact on Australia real estate can be considered, for recommendation of future strategies to SKY HIGH Real Estate Developers. It was found that population growth is increasing, with enhanced rate of immigrants and increased life expectancy. Family sizes are getting small than the past and nuclear families are emerging. Additionally, income level of people is also improving and baby boomers are approaching retirement. Based on these trends, the following recommendations are made to SKY HIGH Real Estate Developers;
- SKY HIGH Real Estate Developers needs to address the segment which has highest growth potential. Such as people approaching and getting retirement and elderly segment is expected to see continual growth based on increased life expectancy. By tailoring real estate construction to the needs of this segment in terms of location, house size and design, can benefit the company in long run.
- Secondly, based on trend of living alone and nuclear families, the investment in apartments and town houses seems an attractive opportunity for SKY HIGH Real Estate Developers. The development of town houses and apartments for rentals can lead to long run growth of company and it is expected to be profitable and with improve income level, people are willing to spend on satisfaction of their housing need.
References
ABS, 2019. Australian demographic statistics, Australia’s population grows by 1.6%. [Online], Available at; https://www.abs.gov.au/ausstats/[email protected]/lookup/3101.0Media%20Release1Dec%202018. [Accessed; 31 August 2019]
ABS, 2015. 4442.0 – Family Characteristics and Transitions, Australia, 2012-13. [Online], Available at; https://www.abs.gov.au/ausstats/[email protected]/mf/4442.0. [Accessed; 31 August 2019]
ABS, 2016. Census quick stats. [Online], Available at; https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/036. [Accessed; 31 August 2019]
Abs, 2018a. 3101.0 – Australian Demographic Statistics, Jun 2018. [Online], Available at; https://www.abs.gov.au/ausstats/[email protected]/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument. [Accessed; 30 August 2019]
ABS, 2018b. 3222.0 – Population Projections, Australia, 2017 (base) – 2066. [Online], Available at; https://www.abs.gov.au/AUSSTATS/[email protected]/mf/3222.0. [Accessed; 30 August 2019]
[1] https://www.abs.gov.au/ausstats/[email protected]/lookup/3101.0Media%20Release1Dec%202018
[2] https://www.abs.gov.au/AUSSTATS/[email protected]/mf/3222.0
[3] https://www.abs.gov.au/ausstats/[email protected]/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument
[4] https://www.abs.gov.au/ausstats/[email protected]/mf/4442.0
[5] https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/036
[6] https://www.abs.gov.au/ausstats/[email protected]/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument
[7] https://www.abs.gov.au/ausstats/[email protected]/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument
[8] https://www.abs.gov.au/ausstats/[email protected]/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument
[9] https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/036
