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Real Estate Essay

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In this assignment I choose Level 1 statistical area 3112005 and 3112704 as my object. This two areas are both located in Brisbane and about 6km from Brisbane CBD. SA1 3112005 belongs to suburb Alderley where SA1 3112704 belongs to suburb Newmarket. Although they are located in different suburbs, they are very close to each other, they are separated by Alderley Park. SA1 3112005 locates at the north of Alderley Park and SA1 3112704 is at the southeast side of Alderley Park. Consider these two SA1s are so close to each other and share the same park, I believe they will have similar housing characteristic and similar demographic pattern even they are in two different suburbs.

Demographic comparison Characteristic | 3112005 | 3112704 | QLD | No. of persons counted | 420 | 577 | - | Median age | 35 | 31 | 36 | % born overseas | 20.1 | 28.4 | 26.3 | % English only at home | 90.2 | 82.7 | 84.8 | % aged under 15 | 24.3 | 9.4 | 20.2 | % Married# | 51.6 | 20.7 | 47.9 | % unemployed | 4.3 | 7.2 | 6.1 | % manager* | 19.6 | 6.9 | 12.0 | % professionals* | 37.6 | 31.5 | 18.9 | % technicians and trades* | 6.1 | 9.6 | 14.9 | % labourers* | 2.4 | 8.8 | 10.6 |
*% calculate based on employed people aged 15 years and over
#% calculate based on people aged 15 years and over

Surprisingly, the demographic characteristic in SA1 3112005 and 3112704 are completely different from what I expect. SA1 3112005 is about twice size of 3112704 but with less people living in the area, 420 compare to 577, i.e. much lower population density and better environment. Consider that, people live in 3112005 is likely to be richer than 3112704.
Area 3112005 have lower %born overseas and higher %English only at home, which means there are more immigrations in area 3112704.
The %aged under 15 and %married in area 3112005 is more than doubled compared to 3112704, that indicate people live in area 3112005 are mostly family with children, where in area 3112704 most are singles. People live in 3112005 should be older, that is evidenced by median age is 35 in 3112005 compared to 31 in 3112704, also statistic shows over 45% of the population in 3112704 aged between 20 and 34. The unemployment rate is likely be higher for young people, and it is true in this case. The unemployment rate in 3112705 is much higher than in 3112005, even higher than QLD average.
Consider the population in 3112005 is more mature, they are more likely to become leaders in organization, young people is not likely become a manager. The %manager is less than 7% in area 3112704 compared to 19.6% in area 3112005 confirm that. The %professionals in both areas are over 30% which is much higher compare to QLD average standard 18.9% which shows person live in both areas are more educated than the average. That can also be evidenced by the low %labourers rate.
In conclusion, compare two SA1, people in both areas are more educated than average, however in area 3112005, people are older and at a higher level of organization, most population are family with children and they are likely to be richer compared to 3112704. People live in 3112704 are most single, younger and there are more immigrations.

Income comparison Characteristic | 3112005 | 3112704 | QLD | Median total personal income pw | $1,020 | $697 | $587 | Median total household income pw | $2,200 | $1,287 | $1235 | %Less than $600 gross weekly income | 10.4 | 22.7 | 22.8 |

The income comparison in two SA1 correspond to the demographic characteristic in each area. Median income in area 3112005 is much higher compared to 3112704 and QLD average, as my prediction before. People live in 3112005 are more mature and more than half of them are manager or professional, which are well paid jobs. Compare to 3112005, people are younger in 3112704 and not that experienced therefore they earn much less, their income is still better than QLD average as they are more educated than average.
In conclusion, area 3112005 is much richer compare to area 3112704, evidenced by higher median income $1020 compare to $697 and $2200 compare to $1287.there are much less poor people in 3112005 as well indicated by the percentage of less than $600 gross weekly income is about halved compare to 3112704.

Here is my assumption for housing characteristic based on demographic characteristic. * The property in 3112005 will be bigger, i.e. more 3 bedrooms and more house. * Higher %separate house in 3112005 as there is a smaller population. * Low rented rate in 3112005, family with children less likely to rent a home. Young people are likely to rent as they don’t have enough money to purchase a property. * Weekly rent in 3112005 will be much higher, as people live there are rich. * More vehicle per household in 3112005, car is a must have for family with children and they have money for that.

Dwelling Comparison Characteristic | 3112005 | 3112704 | QLD | % separate house | 88.9 | 30.5 | 78.5 | % 3 bedrooms or more | 81.5 | 35.8 | 76.5 | % rented | 26.4 | 69.7 | 33.2 | Median weekly rent | $381 | $285 | $300 | % 2 or more vehicle | 61.1 | 28.6 | 54.5 |

Compare these two SA1, it pretty much fellow my assumption, complete different housing characteristic in these two area. 3112005 is mainly separate house almost 90% are separate house, higher than QLD average. 3112704 has a lot of unit/apartment, only 30% are separate houses, not even half of QLD average. 81.5% of property are 3 bedrooms and more in 3112005, as this area is for family with children they need bigger houses and more bedrooms just like my assumption. While in 3112704, mostly 1 or 2 bedroom, which make this area perfect for young singles or family without a child. Only 35.8% are 3 bedrooms or more, again half of QLD average. Only 26.4% property is rented in 3112005 compared to 69.7% rented in 3112704. That fellow my assumption again, family with children is more likely to purchase a house compare to single, young people don’t have enough money to purchase a property and they are more likely to rent. 69.7% is more than double of QLD average 33.2%. Demographic characteristic will affect housing characteristic. Weekly rent is tends to be more expensive in the richer area as in this case. The dwelling structure affects rent as well, the more bedroom it has the higher rent, separate house going to cost more for rent compare unit and apartment as well. There will be no doubt the weekly rent in 3112005 will be much higher compare to 3112704. 61.1% of household in 3112005 have 2 or more vehicles since they are richer and family with children need cars. Compare to that, only 28.6% of household in 3112704 have 2 or more cars and over 20% of household in 3112704 don’t have a vehicle. Which can be explained by demographic characteristic, single young people don’t have that much money and car is not a must have for them. SA1 3112005 and SA1 3112704 are very close in location, but their demographic characteristic and housing characteristic are complete different. They both locate in Brisbane and about 6KM from Brisbane CBD, just separated by Alderley Park. However, family with children prefer 3112005, single young individual prefer 3112704 which may cause by the dwelling structure. There are more big house in 3112005, more unit or apartment in 3112704, big house will attract family with children and small apartment is better for singles. It works in the reverse way as well, if an area are most families with children, it is less likely a new apartment building will be built in that area. Therefore demographic characteristic and housing characteristic of an area affects each other. Income situation affects the housing characteristic as well. E.g. 3112005 is richer than 3112704 even they are so close, the rent rate in 3112704 is much higher as people in 3112704 can’t afford to purchase a property.

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