MARKET STUDY

Prepared by:
Siti Fairuz Binti Che Pin
Department of Estate Management
Faculty of Architecture, Planning and Surveying
Universiti Teknologi MARA Perak
 DEFINITION

• A process of enquiries that leads to an

understanding of what the present
state of play in the real estate market
and what is likely in foreseeable future
OBJECTIVES OF MARKET STUDY

• Solution– research a client’s market to

identify and substantiate solution to
marketing problem
• Decision making – ensure the client’s
decision making process has a basis
• Understanding market – clear
understanding of the market
• Reduce risk – assist in reducing risk
 IMPORTANCE OF MARKET STUDY

• To identify and qualify the potential market for

the proposed product and to gain understanding
of how it might be received. This will enable the
development team to adjust the product to suit
the market.

• Tofind out the existing state of supply and

demand
 CONT’S..

• To establish the selling price for types of building that has

been proposed
• To determine the current requirement of purchaser /
tenants
• To identify the feasibility of possible uses
• To look at the trends, patterns and causes for better
judgment about potential use of property.
 MARKET STUDY HELP TO
ANSWER
• What to build
• How many to build
• What is the development mix
• When to sell
• When to construct
 Conts..

• Period of development
• What price to sell
• What are the marketing strategies
• What rental to expect
• Who are potential buyer/tenant
Scope Of The Market Study
 Socio-Economic Factor

• Demographics
• Population growth
• Age & Household size
• Income Level
• Employment
• National/region/International economy
 Policies And Plan

• Local Authority Policies, Rules, Guidelines

• Land Office Particulars Guidelines
• Government Policies Related To Property
• Development Plan
• Infrastructure Development
 Property Sector
• Historic Growth And Trend
• Pattern Of Development
• Existing Stock, Future Supply ,Existing Demand
• Historic Value , Current Value
• Purchaser’s Profile
• Size and Type of Development, Layout
• Target Market, Market Strategies
 Cont’s..

• Current Value
• Purchaser Profile
• Size And Type Of Development
• Target Market
• Layout
• Market Strategies
How to carry out market study
INSPECTION
DECISION FROM THE MARKET STUDY