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Individual property pricing will be affected by factors which are specific to them, that is property maintenance, property style and type, and age will all affect property value. In a wider sense, the national and local economy will have a influence on the price of a property. The increase in price of a given property will be influenced by a combination of supply and demand. Supply is relatively slow to change. Factors affecting supply would include.

• Finance: access to finance for developers, who produce new property for sale

• Government zoning:  Governments in Australia make decisions about the land use in a particular area. Government policy at both a state government and federal government level influence the supply. If new housing on the fringe of a metropolitan area is not rezoned from agricultural or industrial use to residential then it can constrain supply. The same occurs regarding zoning changes from low density to medium and high density areas. Factors influencing demand for investment property include.

• Migration:  As Australia continues to grow housing requirements also increase. As present in Australia we are undersupplied in housing stock and are not building at a volume that keeps up with inflation.

• Employment: regional employment growth will change demand for property. This can be influenced by employment within a certain sector such as mining and resources or other drivers such as government office locations and head office positioning.

• Infrastructure: This covers amenities such as hospitals schools, and shopping centres

• Transport:  The ability for residents to access transport is a critical aspect of an urban area. This may include, road, rail, light rail and buses -

• Wages : House hold incomes affect property demand – high employment  and rising incomes influence what  people can afford and are willing to pay to purchase a property.

• Interest Rates: Those people purchasing property are frequently borrowing money to do so. As a result the interest rates and therefore the cost of money will influence the amount they can afford to repay, and therefore limit the size of new purchases.

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