Absorption Rate

What is the adsorption rate? Real estate investors need to know

   

 

The absorption rate (Absorption Rate) is another matter for real estate investors. or condo investors must know Many people may not have heard of it. Today, Connex will tell you about the Absorption Rate or the absorption rate is one of the powerful analytical tools for choosing real estate investments. that the project or location How effective is it when choosing investments? Is it suitable for investment? believe that everyone will invest in real estate With millions of dollars, everyone must want the best location. The most popular project Help generate profits or income in investing in real estate. Is it true everyone?

 

 

Today we will bring you to know the Absorption Rate or the absorption rate. Let me tell you that those who are interested in investing in real estate. know the advantage Plus, it helps reduce the risk of investing in real estate as well.

 

 

What is the adsorption rate?

 

The absorption rate (Absorption Rate) is a number or indicator that projects in that location How efficient is investment? This absorption rate indicates the amount of demand for real estate in that location and how many buyers are compared to the total units of the project. For example, Condo XXX Assuming there are 100 rooms, 90 rooms have been sold. The absorption rate of this project will be 90%, which indicates that the demand for this project or location is quite high. Including helping us to analyze the potential of that location more easily, reducing investment risks

  

 

The formula for calculating the adsorption rate

 

From the first example, if condo xxx has the total number of rooms in the project at 100 units, 90 rooms have already been sold, which is easy to calculate the absorption rate.

 

(Number of units sold ÷ total number of rooms) x 100, which from the example given would be (90 ÷ 100) x100 = 90%.

 

The absorption rate of this project will be 90%. In short, that is, the higher the % number, the more it will indicate the potential of that location and project. can only get more This information can be analyzed in order to further invest in real estate.

 

 

What's the benefit of absorption rate?

 

When the absorption rate is a number that helps indicate the demand of condos in that location. So what are the benefits of the absorption rate for investors who are interested in investing in real estate? Let's see.

 

- Can be an indicator that projects interested in investing in are currently popular or not

 

- Can be used to assess the potential of the location interested in investing It makes it easier to analyze the demand for buying or renting on that location.

 

- used to assess the real estate market condition

 

 

The absorption rate is an aid in analyzing the potential of the project and that location, but investors should not only use the value of the absorption rate in the analysis alone. There should be a lot of things to analyze. and making decisions Whether it's about the price of that condo project. The higher absorption rate may result in condos having a higher selling price. Investing in a condo that is too high will have more risks.