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This blog helps the property buying community to more easily share strategies, stories and helpful tips. It is an open blog. Anyone can join, contribute and invite others to join.

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Martyn Fleming: 0400 000 822
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03 May 2010

Buyer's or Seller's Market - Can we have it both ways?

Firstly, what does it mean to be in either a Buyer's or Seller's Market?

In short:
- If the number of Buyers are greater than the Number of Sellers = Seller's Market
- If the number of Buyers are less than the Number of Sellers = Buyer's Market

Okay, now that little theory is out the way.. back to the question: "Can we have both active at the same time?" The simple and short answer to this question is 'Yes' "Why?" Because there are different pressures on the supply and demand equation, depending on which segment of the property market we're analysing.

For example, if there's a large infrastructure project in a commercial precinct, it might increase demand for warehouse and office space in the surrounding area. A large amount of buyers may push the warehouse segment of the property market into a "Seller's market". At the same time, there may be only a few buyers interested in retail property in the same area, due to low consumer confidence and slow retail activity, indicating a Buyer's market in that area. These conditions can exist within the very same area.

Alright! Now we understand how demand and supply can the market and that a Buyer's and Seller's market can co-exist at the same time, in the same area. How can we profit from this knowledge?

Let's imagine we're about to buy a commercial property for our investment portfolio, our choice of property type (retail vs warehouse) will make a significant impact on how we approach the buying task.

When buying, it's important to scan the market using impartial data, as this will determine the strategies that will and won't work during the search, analysis and negotiation processes.

To learn more about the buying conditions in your area and selecting the right property for your property portfolio, talk to your Buyers Agent at Morpheus Property - 1300 911 576.

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