The following information is the last blog expressing the current state of real estate in Bury St Edmunds. If you haven't already, I'll advise taking a look at the SWOT Analysis & the PESTEL Analysis. Now it's time to give you graphs and make use of Porter Five Forces. If you are looking for more information on your local real estate check out our site. Also, If you would like to know how we can apply this information to your social media, web and business, don't hesitate to ask. Now let's dive in starting with trends.
Average Time on Market by Type in Bury St Edmunds (days)
Average Time on Market by Number of Bedrooms in Bury St Edmunds (days)
Number of Properties Found Advertised for Sale in Bury St Edmunds by Type
The Threat of New Market Entrants – High
The real estate market is relatively unique, and its uniqueness lies in the high-input, high-yield, and high-risk. Since the introduction of the reform and opening, real estate has been separated from the construction industry and has developed rapidly. The real estate market is a large potential for new entrants for the following reasons: The real estate industry as a pillar industry is of great importance to the national economy, which has attracted many enterprises to be involved in it. In recent years, the good operating performance of the real estate industry has aroused widespread concern from other industries.
The Threat of Substitute Products – High
Bury St Edmund's real estate market is still in the formative age, and the target customers are constantly changing. This is because consumption patterns gradually changed from public consumption before the reform and opening, to personal consumption after it. The transformation of Consumer attitudes and the high-grade price of the real estate provide an opportunity for the substitute. For example, in the residential market, although the current houses are good enough, they will be replaced by newer better housing if not quickly be sold. With the cars coming into family and transportation facilities improved, the real estate consumer attitudes are changing, and residential surbanisation trends will be more obvious.
The Bargaining Power of Suppliers – Moderate
The land belongs to the nation, the developers purchase its tenure, and they are subject to the effects of national and local government’s land policy, and so have been restricted in land acquisition. The cost of land acquisition is an important part of real estate total cost, and the land supply is limited, which makes the land suppliers have high supply-side bargaining power. Although the government has introduced several policies to stabilise the real estate prices, whether the prices of ordinary residence or high-grade is still rising, which follows that the second-hand house’s price is also increasing dramatically.
The Bargaining Power of Buyers – Moderate
The purchaser’s bargaining power has changed. Private consumption-oriented buyers will use more time to "bargain”. As the real estate market is also being standardised, the developers are lack of unified management of the price; and so the price competition among enterprises become increasingly fierce, as a result of this, the buyers in the real prices have increased bargaining power. The developers give large price fluctuations rights to the distribution staff, and their income has a direct relationship with the sales performance, which leads to the difference in the price in the same property. The buyers realise the “price flexibility" in the process of buying property, and that the buyer bargaining power is enhanced.
The Competition Between Industry Rivals – Low
The real estate development enterprises in the domestic market are continuously increasing. Normally, in any industry, there are more enterprises and more intensity will be. It’s not only because many enterprises must take a place in markets determined by the total demand, but also because every enterprise has the view that it is only a minor participant, hence its price or another investment strategy for the whole industry has minimal impact, and they will take a separate action. In such cases, cooperation between enterprises will become more difficult, which also intensified competition. Although there are many real estate development enterprises, their development capacity per year is very small, and the market can’t be dominated by one or a few large enterprises, and they can’t adjust their prices and other tactics to affect others.
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