PRODUCT MIX OF CONDOMINIUM DEVELOPMENTS

Abstract

The concept of product mix has been introduced into the market as early as in the 1960s. Since then, this concept has been widely utilized in an array of industries. However, little of its applications have been documented in the real estate industry. In this study, the researcher attempts to establish the relevance of the product mix concept to the condominium development business. A survey conducted among practitioners in the industry affirmed the practice of a product mix (unit type) determination process among development firms. The main findings revealed locality, target market / theme, state and timing of market and site constraints as pertinent factors that affect product mix for condominium developments. Demographic trends, vacancy rate and developer's preference were found to have less impact on product mix decisions. A surprising finding was made in which majority of the respondents disclosed that profit margin of unit types was not a factor in their consideration of the product mix for their condominium developments. Following the survey, a case study comprising 46 condominium developments was carried out to verify the results of the survey against empirical observations. Preliminary analysis revealed slight deviations from the results of the survey, suggesting that certain views held by current practitioners may no longer stand in the dynamic market of today.