Week 3 - Market areas ch4 Flashcards
what is plot ratio
> floor area ratio
PR is defined as the gross floor area of all buildings on a site divided by the area of the site, but excluding the area of stairs, loading bays, access ways or car parking areas, or any area occupied by the machinery required for air conditioning, heating, power supply or lifts. (Melbourne Planning Scheme Ordinance)
Grandfathering: Buildings built before the introduction of zoning regulation (height and/or plot ratio) can maintain overbuilt space
types of ownership
Ownership in severalty Joint Tenancy Tenancy by the Entirety TIC (Tenancy in Common) Partnership REIT
characteristics of efficient markets
large number of buyers and sellers
homogenous products
buyers and sellers act with knowledge and information
supply and demand never far out of balance (equilibrium)
market mechanism
what are the 4 property cycles
expansion = sustained growth in demand, increasing construction
Decline = positive but falling demand and increasing vacancy
Recession = Falling demand, decreasing vacancy
Recovery = Increasing demand, decreasing vacancy
define submarket
division of total market that reflects preferences of particular buyer or seller
define market segmentation
process by which submarkets within larger markets are identified and analysed
Define disaggregation
Grouping properties together based on similar attributes
market delineation process
identify property type identify property features (including occupancy and customer base) market area available substitute properties complimentary properties
define market area
geographic delineation of the market for a specific category of real estate - the area in which alternative, similar properties effectively compete with the subject property
Can encompass one or more sub-markets
Market for a specific category of RE
Area where alternative, similar properties compete
define neighbourhood
a group of complementary land users: grouping buildings businesses or enterprises
The immediate environment / vicinity / surroundings
define suburb / district
type of market area defined by homogenous land use e.g. apartments, houses, commercial, industrial
market areas 4 stages
growth - gains public favour + acceptance
stability - market experiences equilibrium without marked gains or losses
Decline - stage of diminishing demand in a market area’s life cycle
Revitalisation - epitomised by renewal, redevelopment, modernisation and increasing demand
explain gentrification
Gentrificationis a process of renovation and revival of deteriorated urban neighbourhoods by means of influx of more affluent residents, which results in increased property values and the displacing of lower-income families and small businesses.
Residents who lived in the gentrified area are likely to be displaced by the influx of more affluent residents
main types of sub markets
Residential Commercial Industrial Retail Agricultural
explain single family sub market
Predominance of owner-occupied homes, low density areas
Categories Detached houses Custom-built subdivisions Senior housing Rural housing
Value influences Transportation services Access to workplace, shopping centres Quality of local schools Reputation of area Supply of vacant land likely to be developed
