1

Question 1

What are the demand and supply factors?

Answer 1

1. Demographics, interest rates, economy, government subsidies /, policies, consumer confidence
2. Labour, land and materials

Question 2

Discuss Bear and bull market conditions

Answer 2

1. Bear market means rent tends to be lower,
2. Bull market means rent tends to be higher

Question 3

What influences r.e price

Answer 3

1. Fixed income - the available yield in the bond market influences how much investors expect from the r.e investments
2. Equity - only has real influence during financial crisis and securitization when R. E are securities and are sold on the equities market

Question 4

What are the three primary centralizations forces?

Answer 4

1. Economies of scale - how cheap its to produce a product
2. Economies of agglomeration- now productive or costs are in relation to other areas
3. Positive locational externalities- how surrounding areas support a place

Question 5

Name nine economic bases

Answer 5

F.I.R.E., farms, military, government, manufacturing, mining, transportation, diversified, service

Question 6

Other factors that influence urban economics

Answer 6

Location and residual land value
Competition, equilibrium and highest and best use
The role of transportation
Land use principles

Question 7

What is residual land value

Answer 7

The remains value when all items are taken away from the land

Question 8

What is rent

Answer 8

The cost of using a space

Question 9

Similar competing
Exclusive competing
“Inferior” competing

Answer 9

Similar competing products stabilise market prices
▪ Exclusive competing products increase market prices
▪ “Inferior” competing products decrease market prices