Beruflich Dokumente
Kultur Dokumente
Market System
Market determines product prices and
output through forces of supply and
demand:
a. Supply: Qty of goods/services
businesses are willing to sell at different
prices at a specific time (seller, producer,
or business)
b. Demand: Qty of goods/services
consumers are willing to buy at different
prices at a specific time (buyer, or
consumer)
Market/Equilibrium Point:
The price and qty combination where supply equals demand
a. market forces eliminate surplus or shortage
b. supply, demand, and equilibrium only exist in a market
(capitalist) system.
Competition
The rivalry among businesses to convince consumers to buy their
goods/services
degrees of competition (market models):
1. Perfect Competition: numerous sellers, standard product
2. Monopolistic Competition: many sellers, product differentiation
3. Oligopoly: few sellers, interdependence,
4. Monopoly: one seller, one product
LAND
Factors of Production
(basic resources):
EC ONOMICS
Products
Properties
Supply/Demand
Construction
Pricing
Property Prices
Market
Property Market
Competition
Among Developers
Office zone
Manufacturing
Residential
zone
zone
RENT
RM 1.50psf
OBJECTIVES
Investors
Profits/Returns on Investment
Contractors
Authorities
Objective in Investment :
To preserve or enhance the real value of the asset and receive
a flow of income over time.
Private
Individuals
Property
Companies
Development Companies
Undertake property projects
Highly geared (Loans)
Specialise in Residential, Commercial & Industrial
properties
Property
Companies
Pension Fund
Insurance Co.
Charities
Trusts.
MARKET STUDY
Purpose :
1. To determine the nature and types of property market during
2. Focus on one type of development on a particular location.
3. To determine whether there is a demand to the present supply or
to the proposed Project
Market Study in Important Under The Following Conditions
1
Location of Site
Nature of Site
Availability of Infrastructure
Local Demand
Local Authorities
Climatic Condition