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For this assignment you are to imagine that your group has formed a small business offering consulting services to potential buyers in the residential real estate market. The business is to collect...

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For this assignment you are to imagine that your group has formed a small business offering consulting services to potential buyers in the residential real estate market. The business is to collect and analyse data on sales of houses and apartments in Melbourne and to produce informative suburb reports for clients based on their preferences and budget. Choose one member of your group to be responsible for obtaining the data. This group member should download the spreadsheet corresponding to their student ID from the OneDrive Datasets folder link on the LMS. This spreadsheet contains data on a simple random sample of 326 observations on sales of houses and apartments in two Melbourne suburbs (South Yarra and Richmond) in either 2018 or 2019. The spreadsheet contains the following columns: Price Selling price of property in $’000 Bedrooms Number of bedrooms Type House or Apartment Year Year of sale, 2018 or 2019 Suburb Richmond or South Yarra NearestPrimary distance to nearest primary school (km) Part A: First Draft. Due by 10am on Friday 24 April Report 1 (10 Marks) A descriptive and comparative analysis of the property markets in the suburbs of South Yarra and Richmond, written for a general reader with an interest in the market in this area. It should describe, with supporting statistics and graphs, the prices and characteristics of properties being sold across both suburbs. Report 2 (10 Marks) A report written specifically f o r a c l ient w h o is a si ngle fi rs t ho me buyer looking for an apartment near the city (either South Yarra or Richmond would be fine) a nd h as a budget of $500,000. Part B: Final Draft. Due by 10am on Friday 29 May The same data set must be used in Parts A and B. Word Limit 1000 words. Reports 1 and 2 should be revised following feedback on the first draft. Report 1 (20 Marks) A descriptive and comparative analysis of the property markets in the suburbs of South Yarra and Richmond. It should describe, with supporting statistics and graphs, the prices and characteristics of properties being sold across both suburbs, along with any changes over time. Report 2 (20 Marks) A report written specifically f o r a c l ient w h o is a si ngle fi rs t ho me buyer looking for an apartment near the city (either South Yarra or Richmond would be fine) a nd h as a budget of $500,000. Report 3 (20 Marks) A report written specifically f or c lients w ho a re a d ual i ncome f amily with a young child wanting to move into Richmond (either a house or apartment with two bedrooms or more would be fine), w ith a b udget o f $ 1 million. Appendix (20 Marks) A technical appendix (which would be not be of interest to the general public, and is therefore not included in the word limit) which sets out the detailed steps of all statistical inference carried out to inform the first t hree s ections o f t he report.
Answered Same Day Jun 01, 2021

Solution

Monali answered on Jun 03 2021
134 Votes
Report 1 (20 Marks) A descriptive and comparative analysis of the property markets in the subu
s of South Ya
a and Richmond. It should describe, with supporting statistics and graphs, the prices and characteristics of properties being sold across both subu
s, along with any changes over time.
· Market overview:
There are 2 subu
s, namely, Richmond and South Ya
a, for which property details are available for two successive years of 2018 and 2019. Blow summary indicates large number of properties in both subu
s are available so that comparative analysis can be performed. Below is overview of market in both areas.
In property market purchaser gives consideration to prices and area space. Therefore, following area wise examination of property attributes.
South Ya
a Subu
overview
· Mean property price:
As noted above, 158 properties are available in this area. Mean of property price is $843,000/-. Below chart shows comparison of different bedroom wise area to overall average price in subu
. It is clear to see that 1- & 2-bedrooms properties have prices far below overall mean price for South Ya
a property. 4-bedroom prices are almost four times higher compared to overall mean for the area.
· Property type comparison:
Purchaser are often interested in difference between house and apartment. Buying larger property will go in direction of choosing House and smaller property will be chosen from Apartment type. Therefore, logically also, House has more price compared to Apartment. House in South Ya
a subu
is more than 3 times price of Apartment, as show in below comparative chart.
· Minimum price comparison:
Purchaser is interested in minimum prices in overall area and across different bedroom and property types. This is useful comparison to make choice within bedroom space, house or apartment type. Minimum price for overall area, 1-bedroom and apartment type is the same. But minimum prices for 2-bedroom area twice, 3-bedroom five times, 4-bedroom sixteen times compared to overall minimum property price in area (approximately). Minimum price for house is three times higher compared to overall subu
minimum (approximately).
· Maximum price comparison:
Purchasers are interested in knowing what would be maximum price in subu
. Overall maximum price of property in South Ya
a subu
is similar / approximately same for 4- & 3-bedroom, Apartment and house prices. Prices for 2-bedroom & 1-bedroom are far lower compared to overall maximum prices.
· Minimum and Maximum difference comparison:
Having checked minimum and maximum prices in South Ya
a subu
, next we look at the difference between groups across categorisation. Apartment and overall prices area very expensive with higher bar indicating maximum prices in both categories. Other categories across bedrooms and house type property has relatively lesser bar length indicating price difference between is relatively lesser.

· Price increase or decrease:
Purchasers are interested in price appreciation across categories and in overall area. In South Ya
a area, appreciation of price is seen across all categories, but interestingly, no property of 4-Bedrooms is available in 2019. This indicate low demand, no 4-bedroom property sale in 2019 and higher price of 4-bedrooms in South Ya
a subu
. Also, prices of 1-bedrooms decrease over 1.2% from 2018-2019. This indicates no demand and over supply despite maximum 1-bedroom prices are far lower compared to overall South Ya
a subu
maximum property price.
    Property
    2018
    2019
    % Change
    Overall average price
    801
    928
    15.9%
    3 Bedroom average price
    1677
    2033
    21.2%
    2 Bedroom average price
    721
    948
    31.5%
    1 Bedroom average price
    415
    410
    -1.2%
    Apartment average price
    640
    672
    5.0%
    House average price
    1953
    2007
    2.8%
Richmond Subu
overview
· Mean property price:
As noted earlier, 168 properties are available in Richmond area which being higher compared to South Ya
a. Mean property price is $961,000/-. Below table shows price of properties based on number of bedrooms and type of property. It is clear to see that 1- & 2-bedrooms properties have prices far below overall mean price for Richmond. 4-bedroom prices are almost twice times higher compared to overall mean for Richmond subu
.
· Property type comparison:
Purchaser base choice on type of property and therefore, critical to look at prices for houses and Apartment. Prices for house is twice that of Apartment, as show in below comparative chart.
· Minimum price comparison:
Looking above we saw that overall mean price being higher for Richmond subu
compared to South Ya
a. Next, look at minimum price comparison across categories in Richmond subu
. This will give perspective on choice based on minimum prices across different categories. Minimum prices for overall area are approximately same for 1-Bedroom and Apartment. Prices for 2-bedroom are comparable to overall minimum prices. But minimum prices for 3-bedroom are more than three times, 4-bedromm are approximately four times and houses type properties are two & half times higher compared to overall minimum prices in Richmond subu
.
· Maximum price comparison:
Purchasers are looking at Richmond subu
where overall prices are higher compared to South Ya
a. Therefore, it is imperative to look at maximum prices across all categories. Overall maximum prices are same for house type property and approximately similar for 4-Bedroom and 3-Bedroom. Prices for Apartment and houses type properties are approximately twice lower compared to overall maximum prices in Richmond subu
.
· Minimum and Maximum difference comparison:
Below graph and data comparison clearly show that Richmond is rather expensive subu
with wide difference in maximum and minimum prices across all categories. Maximum and minimum prices of 4- and 3- Bedroom are comparable.

· Price increase / decrease:
Below is price appreciation / depreciation from year 2018-2019. Despite being overall expensive compared to South Ya
a, 4-Bedroom apartment are showing growth in prices and therefore indicating potential area of growth from 2018-2019. This also goes in direction of customer preference from year to year. Prices for 2-Bedroom and Apartment are decreasing from 2018-2019 indicating over supply.
    Property
    2018
    2019
    % Change
    Overall average price
    904
    1069
    18.3%
    4 Bedroom average price
    1726
    1837
    6.4%
    3 Bedroom average price
    1343
    1581
    17.7%
    2 Bedroom average price
    948
    879
    -7.3%
    1 Bedroom average price
    410
    427
    4.1%
    Apartment average price
    672
    566
    -15.8%
    House average price
    1280
    1515
    18.4%
· Price increase or decrease comparison in both subu
:
Prices for 1-bedroom decrease in South Ya
a was at 1.2% but in Richmond it is increasing with growth of 4.1%. This indicates shift from South Ya
a to Richmond in 1-bedroom category. 2-bedroom in Richmond has shown negative prices of 7.3% while in South Ya
a growth of price is 31.5% for 2-bedroom. Therefore, shift from Richmond to South Ya
a for 2-bedroom apartment.
Report 2 (20 Marks) A report written specifically f or a client who is a single first home buyer looking for an apartment near the city (either South Ya
a or Richmond would be fine) and has a budget of $500,000.
· Preliminary, we are looking at fixed budget of $500,000 and interest to pay minimum price. Based on this, prices considerations comparison subu
s are given below.
· Overall minimum prices in both subu
s are approximately same price with South Ya
a being lower.
· 4- & 3-bedrooms are out of the budget of $5,000,000. And need for single person is adequate space with minimum price. In lieu of this, 1-bedroom and Apartment type property are good choices.
· 1-bedroom and Apartment type property have similar average prices in both subu
where prices being minimum at South Ya
a. Also, apartment price growth in South Ya
a decreased in price only by 1.4% compared to price growth of 4.1% in Richmond from year 2018-2019.
· Table of choices for spot purchase for year 2019 is shared below. Apartment of 1-bedroom in South Ya
a is at $237,250/- is available at minimum price. And is therefore recommended for single person.
    Price'000
    Bedrooms
    Nearest...
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