Anyone still does not know that the property market is slow today? It’s slow. However, if someone were to tell me that it is now the buyers’ market, I have to say I disagree. Look at the chart showing the property price movements based on transactions. Sure, the number is at the lowest point in the whole chart and it’s way below the past average but what does it tell us? Yes, total transactions are still showing a positive increase and not a negative one. Briefly, sellers are STILL selling higher than the price they bought despite property market been on a downtrend when we compare it to 2012 in terms of total transactions. Okay, this is an average number yeah. Some may be suffering from a negative selling price definitely.
Why are buyers still paying a higher price despite the market being soft? Well, we MUST ask the buyers. Why are they still paying more for a property? Should they not pressure the seller to sell lower, lower and lower? This brings us back to demand vs supply which is different based on different areas! A mature neighbourhood surely will have huge demand (lots of ready amenities and conveniences) but the number of units up for sale is surely lower than the demand. This is why sellers owning units in these popular areas continue to have strong negotiation power (even if it’s more of holding on to the price versus calling the shots altogether). What this tells us also is that this is the best time to buy into less established areas too yeah.
However, what happens when the buyer wants to buy into a popular area and gives a very irrelevant price target? Look at image… Hahahaha… Ladies and gentlemen, the time to buy a property at an attractive price will not be around for a very long time. As for that property which everyone is currently waiting for? The only way for the price for that one to drop is for a financial crisis to happen. If it happens though, the first one to get the news and bought the unit would be the neighbour or relatives or close friends. This is why if we are really interested with one particular property, be REALISTIC. Give an offer which is close to the usually transacted price. Browse here: brickz.my You may just get to buy your dream home at a good price but never a low price. Happy understanding about demand versus supply and knowing that in the property market, average numbers do not mean much.
written on 12 March 2019
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