The Law of Supply and Demand
The absolute and unquestionable model of price determination for real estate market is based on the law of supply and demand. By analyzing the supply and demand we can determine the appreciation of a market, the velocity of sales and expectations of buyers and sellers. Logically, if a real estate market experiences an all-time high demand for properties (buyers) and a limited supply (sellers) then we can expect skyrocketing prices for properties in general. In that case, we can predict to see average properties find buyers quickly.
Absorption rate drives Bali real estate economy
We would like to introduce you the absorption rate. This statistic calculates the rate at which homes sell in a given time period. Absorption rate is calculated by dividing the number of sales in a given month by the number of available homes for sale. C9 Hotelwork last report showed an astonish absorption rate of 40% for one bedroom units in Bali. Translation : 40% of one bedroom units found buyers within one month, pretty impressive and inviting for investors isn’t it ? See the following charts for the market absorption by location and by villa type.
Warning
On the island of Gods (Bali), property market is appreciating fast and gives sellers a great bargaining power. Buyers and tenants must be well advised because they have less control and must negotiate carefully to meet seller demands in order to make the purchase or lease.
Source: C9 Hotelworks Market Research
Intan Goyana and Bali Radar Team
The absolute and unquestionable model of price determination for real estate market is based on the law of supply and demand. By analyzing the supply and demand we can determine the appreciation of a market, the velocity of sales and expectations of buyers and sellers. Logically, if a real estate market experiences an all-time high demand for properties (buyers) and a limited supply (sellers) then we can expect skyrocketing prices for properties in general. In that case, we can predict to see average properties find buyers quickly.
Absorption rate drives Bali real estate economy
We would like to introduce you the absorption rate. This statistic calculates the rate at which homes sell in a given time period. Absorption rate is calculated by dividing the number of sales in a given month by the number of available homes for sale. C9 Hotelwork last report showed an astonish absorption rate of 40% for one bedroom units in Bali. Translation : 40% of one bedroom units found buyers within one month, pretty impressive and inviting for investors isn’t it ? See the following charts for the market absorption by location and by villa type.
Warning
On the island of Gods (Bali), property market is appreciating fast and gives sellers a great bargaining power. Buyers and tenants must be well advised because they have less control and must negotiate carefully to meet seller demands in order to make the purchase or lease.
Source: C9 Hotelworks Market Research
Intan Goyana and Bali Radar Team