Industry Rivalry: Neutral To Unfavorability

1. Intensity of Industry Rivalry (Neutral to Favorable)
Compared to many other industries, the intensity of rivalry among developers in residential development is relatively low. The area where it is felt most is in competition for development land. When it comes to selling end units, developers typically try to avoid competing directly by 1) developing products in different markets / locations; 2) launching products at different time periods; 3) differentiating product types.
The key factor is that residential property is sufficiently differentiable and not subject to any sort of perishibility or technological obsolescence such that developers have much more flexibility with the timing of producing and selling their end product.

2. Threat of new entrants (Neutral to Unfavorable)
When an industry has over 60,000 registered participants, it is hard to conclude that barriers to entry are high. Although the number of entrants varies over time and according to market condition, they are sufficiently low

Lastly, capital providers, be they banks, shareholders or bondholders, may have different investment appetite for this industry at different times but whether investors or bankers demand a specific risk premium to provide capital is more dependent on the perceived risks at any point in the property cycle and not any kind of structural risk premium.

5. Bargaining Power of Buyers (Neutral)
Of all the five forces, this is perhaps the most dependent on 1) the stage in the industry cycle; 2) regulations to protect consumer interests and 3) financial state of individual developers. Given this wide variance, it is very difficult to conclude definitively that buyer power is always strong or always weak. The truth is buyer power will fluctuate greatly. Thus developers that have a