According to the most recent survey of our readers, nearly 70% of the respondents indicated that they are planning to build or purchase a new home over the next 2 years. These results indicate that the growth in the construction industry is likely to accelerate in the near future. Therefore, this industry continues to offer lucrative opportunities for investment.
The article tries to reach the conclusion that construction industry is an attractive investment opportunity, by using results from a reader's survey regarding plans of "new home purchases". Although there are plausible links between this survey result and the constrution industry outlook, the current logic being presented is poor and the author has failed to fiorm a logical and strong argument.
First of all, the background of the survey was never clearly revealed. The decision to purchase a new home in two years time can be much more popular amongst young readers, comparing to readers with a family. Without further demographic information on the survey sample, the current high level of positive response is not sufficient to forecast a higher-than-usual growth neither for the property market, or for the construction industry.
Secondly, a growing contruction market is only one of the many elements to judge whether or not the construction market is an attractive investment opportunity. While the arthur makes no attempt to forecast the future growth of labour cost and building material cost, it is difficult to judge home construction's profit margin, which is an equally important element of an attractive investment opportunity.
Last but not the least, the authur fails to state the current occupancy rate of new-built home, which should be an important assumption while forecasting a growing demand in new home constructions. If there is a sufficient pool of newly-built homes that can be sold to buyers, a surge in the market demand does not automatically transform into growing demands of constructing new home properties.
In order to support author's statement with concrete rationale, it will also be helpful to include the methodology used in the readers survey, survey sample size and demographic information of those samples. The author can also provide an market overview of the existing projects-under-construction, hence identifying a gap between the number of completing new homes and the market demand.
The article tries to reach the conclusion that construction industry is an attractive investment opportunity, by using results from a reader's survey regarding plans of "new home purchases". Although there are plausible links between this survey result and the constrution industry outlook, the current logic being presented is poor and the author has failed to fiorm a logical and strong argument.
First of all, the background of the survey was never clearly revealed. The decision to purchase a new home in two years time can be much more popular amongst young readers, comparing to readers with a family. Without further demographic information on the survey sample, the current high level of positive response is not sufficient to forecast a higher-than-usual growth neither for the property market, or for the construction industry.
Secondly, a growing contruction market is only one of the many elements to judge whether or not the construction market is an attractive investment opportunity. While the arthur makes no attempt to forecast the future growth of labour cost and building material cost, it is difficult to judge home construction's profit margin, which is an equally important element of an attractive investment opportunity.
Last but not the least, the authur fails to state the current occupancy rate of new-built home, which should be an important assumption while forecasting a growing demand in new home constructions. If there is a sufficient pool of newly-built homes that can be sold to buyers, a surge in the market demand does not automatically transform into growing demands of constructing new home properties.
In order to support author's statement with concrete rationale, it will also be helpful to include the methodology used in the readers survey, survey sample size and demographic information of those samples. The author can also provide an market overview of the existing projects-under-construction, hence identifying a gap between the number of completing new homes and the market demand.
