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Methodology

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INDIVIDUAL POSTCODE ASSIGNMENT Student Name: | Nguyen Thi Mong Nghi | Student ID: | 18573400 | Class: | MK1MDP | Lecturer: | Peter Wong | Submit Date: | December 19, 2015 |

EXCUTIVE SUMMARY

This report explored the hypothesis that ALPHA PROPERTY DEVELOPMENT GROUP whether they should invest in property in Edgecliff. The report uses previous research (secondary data) to examine many elements, such as: demographics, geographic, type of dwelling, sales prices of dwelling… in order to decide should the ALPHA GROUP join the market or not. In conclusion, the result of this study recommends that the ALPHA PROPERTY DEVELOPMENT GROUP should target for renting house with target market – Upper class in Edgecliff.

TABLE OF CONTENTS

EXCUTIVE SUMMARY 1 TABLE OF CONTENTS 2 INTRODUCTION 3 DISCUSSION 4 CONCLUSION 10 REFERENCE LIST 11

INTRODUCTION

In marketing business, marketers usually use segmentation to have more knowledge about consumer from choosing more than one of many segmentation variables. Segmentation variables are grouped into four categories: demographic variables, geographic variables, psychographic variables and behaviouristic variables. In demographic and geographic variables, marketers think that there is a link between customer’s needs and purchasing behaviours.
The ALPHA PROPERTY DEVELOPMENT GROUP is interested in investing significant amount of money into building property within Australia. The company has already developed a variety of properties across Australia, including both residential and commercial building. But what type of property should they invest in developing and in which approximate location?
This study, the ALPHA PROPERTY DEVELOPMENT GROUP will be used as an example to demonstrate the link between customer’s needs and purchasing behaviours by using demographic and geographic variables. Finally, it is recommended that the ALPHA PROPERTY DEVELOPMENT GROUP should invest in renting house for Upper-class people in Edgecliff.

DISCUSSION

Demographic and Geographic of Edgecliff:
Edgecliff is a small suburb in East Sydney, in the states of New South Wales, Australia. The distance from Edgecliff to Sydney (Centre) is 4 kilometres. The postcode of Edgecliff is 2027. There are 5 suburbs surround Edgecliff, include: Double Bay, Woollahra, Paddington, Rushcutters Bay and Darling Point.

Picture 1: Edgecliff Suburb
(Source: censusdata.abs.gov.au)

* Edgecliff’s population:

Population: | 1,981 | Male: | 935 | Female: | 1,046 | Average age: | 38 |
Table 1: Population of Edgecliff suburb in 2011
(Source: censusdata.abs.gov.au)
The number of citizens in Edgecliff were 1,981 people, which male made up 47.2% and female took up to 52.8% with the medium age was 38.

Table 2: The age distribution for Edgecliff and the Average Australia. Age categories | Edgecliff postcode area | Percentage (%) | Average Australia | Percentage (%) | 0-4 years | 90 | 4.5 | 1,421,050 | 0.63 | 5-14 years | 85 | 4.3 | 2,722,975 | 0.31 | 15- 24 years | 141 | 7.12 | 2,866,471 | 0.5 | 25-54 years | 1,068 | 54 | 8,981,574 | 1.2 | 55-64 years | 192 | 9.7 | 2,503,360 | 0.8 | 65 years and over | 404 | 20.4 | 3,012,289 | 1.34 | Total: | 1980 | | 21,507,719 | 0.92 |
Source: Based on 2011 Census QuickStats: Edgecliff.
The table illustrates the age distribution for Edgecliff comparing to average Australia.
It can be seen clearly from the table that the majority of Edgecliff’s population was people aged from 24 to 64 years. However, comparing to average Australia, elders aged 65 years and over was the highest percentage.
According to the table, comparing to Edgecliff’s population, the percentage of Edgecliff’s residents who aged from 24 to 54 years was 54%. Meanwhile, the percentage of people who aged from 65 and over was 20.4%. However, when comparing to “Average Australia”, citizens in 64 years and over group took up slightly higher proportion than 24-54 years group (1.34% and 1.2%, respectively).

* Income:
According to Census QuicStats (2013), the medium weekly family income, couple family have 2 types of income: Families with children and families without children.

Source: Based on 2011 Census QuickStats: Edgecliff.
The chart compares the average weekly income between Edgecliff, New South Wales and Average Australia in 2011.
It is clear that Edgecliff had the highest medium income in both types. Meanwhile, there was a slightly difference between New South Wales and Average Australia. * Families with children: $3,345 (Edgecliff), $2,370 (NSW), $ 2,310 (Average Australia) * Families without children: $3,129 (Edgecliff), $2,120 (NSW), $2,180 (Average Australia)
In addition, the average weekly income per Edgecliff’s citizen was $1,176 and the median income of household was $1,783 per week (Qpzm LocalStats, nd)

* Occupation:

Source: Based on 2011 Census QuickStats: Edgecliff.
Figure 3 shows the percentage of Edgecliff’s occupation in 2011 with many different employments.
The graph indicates that the main works of people who live in Edgecliff are Professionals (41.5%), Managers (20.1%) and Clerical and Administrative Workers (13.4%).

Types of dwellings, services (Shopping centres, transports) in Edgecliff. * Types of dwellings:
Table 5: Type of dwelling in Edgecliff (2011) Type of dwelling | Number of house | Percentage (%) | Occupied private dwelling | 977 | 86.8 | Unoccupied private dwelling | 149 | 13.2 |
Source: Based on 2011 Census QuickStats: Edgecliff.
There are 2 main dwelling types in Edgecliff: Occupied private dwelling and unoccupied private dwelling. The number of occupied private dwellings was about 6.5 times as many as those unoccupied houses (977 and 149, respectively). * Tenure:

Picture 6: Housing tenure in Edgecliff.
Source: Based on 2011 Census QuickStats: Edgecliff.
The picture gives information about tenure of house in Edgecliff in 2011 with several types.
The table shows that the majority of housing tenure in Edgecliff was “Rented” with 51.9%. Meanwhile, the percentage of occupied private house, which was fully owned, was 28% and private dwelling that owned with a loan was 17.3%

* Services: According to homesales.com.au, in Edgecliff, there are many supermarkets, shopping centres, banks, hospitals and health cares, restaurants, etc…such as: Coles, Woolworth, Commonwealth Banks, Jean Colvin Private Hospital…
Train is the most common transport in Edgecliff. Train stations in Edgecliff are on the Eastern Suburbs Line of the Sydney Trains network. It is usually very busy during rush hour and train. * Sales prices of dwellings:
It is stated by homesales.com.au that the medium price for dwelling was $1,644,993 and the average price for units was $899,696. In addition, the median renting fee for house was $1,475 per week, for units was $650 per week. Furthermore, the average time for selling one house in Edgecliff was 49 days and for one unit was 28 days.

CONCLUSION

In my opinion, it is recommended that ALPHA PROPERTY DEVELOPMENT GROUP should aim for upper-class market and invest on renting house. Because of the following reasons: * There are many homes in Edgecliff that can provide beautiful views of Port Jackson (Sydney Harbour), and it is surrounded by Double Bay, Woollahra, Paddington, Rushcutters Bay and Darling Point

* The most popular occupations were Professionals, Managers and Clericals and Administrative Workers

* It is convenient for people who live there because there are so many shopping centres, banks, hospitals, transport system as well as parking areas, etc. * Most of people who live in Edgecliff renting house instead of buying one.

REFERENCE LIST

1. Australian Bureau Statistic (2013). 2011 QuickStats. Retrieved December 14, 2015, from http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/SSC10794 2. Qpzm (nd). Edgecliff demographic (NSW) Local Stats. Retrieved December 15, 2015, from http://edgecliff.localstats.com.au/demographics/nsw/sydney/eastern-suburbs/edgecliff 3. Homesales.com.au (nd). Edgecliff , NSW-2027-Suburb Profile. Retrieved December 15, 2015, from
https://www.homesales.com.au/location/edgecliff-nsw/

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