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MarketHARD13.6% of exam

A market can support 40 additional comparable apartments over two years, while 80 units are expected to finish in that same period, with no offsetting removals. What does this suggest?

Correct Answer

A) Potential oversupply risk needing further analysis

Expected 80 new comparable units exceed the supported 40 additional units of demand by 40 over the stated horizon. That signals potential oversupply to investigate. Existing vacancy, phasing and other conditions are still needed for a numerical occupancy forecast.

Answer Options
A
Potential oversupply risk needing further analysis
B
Assurance that the new units will lease immediately
C
A proof of unchanged occupancy and rents in the market
D
A proof that construction cost alone determines demand

Why This Is the Correct Answer

Expected 80 new comparable units exceed the supported 40 additional units of demand by 40 over the stated horizon. That signals potential oversupply to investigate. Existing vacancy, phasing and other conditions are still needed for a numerical occupancy forecast.

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