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Construction

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Submitted By zhtianhang
Words 742
Pages 3
127.241 Albany Internal
ASSIGNMENT 1 2016

Weighted at 15% of total marks
Due May 6th

Section A [40 possible marks, 4 marks per question]
The following questions are based on your reading of the chapter by
Pirounakis from Real Estate Economics, A Point-to-Point handbook. They are intended to test your understanding, critical thinking and writing ability as well as application to the current residential real estate market.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

List four mundane considerations buyers of residential real estate consider. Why is pricing real estate ‘guesswork with a little science added’?
When the affordability index drops does property become more or less affordable? Explain your answer.
Describe the nature of ‘derived and authentic demand’ in relation to
Auckland residential houses.
Why is supply of land said to be inelastic?
How does the Proposed Auckland Unitary Plan (PAUP) aim to increase the elasticity (produce imperfect inelasticity) of land in the city?
Why do some commentators question the meaningfulness of talking about a single housing market? Explain and give examples in your answer. How can real estate function as an asset and be compared with other types of assets like shares, bonds, and money for example?
List three channels through which real estate interacts with the wider or macro economy.
One characteristic of real estate is high transaction costs. Explain what this refers to.

1

Section B (30 possible marks, 2 for each calculation [10 in total] and 20 for the summary comments)
Calculating investment performance, risk and uncertainty A property situated in a central Auckland suburb had a rental income of $32,000 over the last 12 months Outgoings are:
Rates $2200
Insurance $875
Repairs and maintenance $1600 The

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