To study the metrics of a residential financial model such as absorption, pricing, price increases in order to improve the reliability and preciseness of the predictive model.
Oportunity
Develop a study that covers the following objectives:
- Identify the physical attributes of the project, the zoning restrictions, and the location of the project
- Identify the market area
- Measure the demand
- Identify the current and future supply
- Measure the balance between supply and demand
- Identify the competitive set of the project
- Determine the absorption or selling time of the projects
- Conclude the selling prices of the units and price increase
The type of project for which this type of report is designed is for a vertically constructed condo project (low rise or high rise) that may have multiple phases or towers. These are often found in master planned communities (higher income) and within macro projects (low-income housing) in Latin America.
Solution
Develop a market study with the following steps:
- Interview with the client and related parties
- Document request
- Property inspection
- Market data research
- Analysis and production of report
- Presentation to the client
Deliverable
Analysis of the Project
- Location
- Physical Attributes
- Zoning Analysis – and Restrictions
Market Demarcation
- Market area
Demand Analysis
- Demand Drivers
Supply Analysis
- Existing Inventory, Planned
Supply and Demand Equilibrium Analysis
- Oversupply, Undersupplied
- Market Cycle Identification
