Around 3 years ago, someone debated with me about a certain developer’s project. She bought a new shophouse and said that she was lucky to get that shophouse because there were so many people wanting that unit. I asked what’s the reason to buy that property. She said she has not yet decided but that was not important. She said that when it’s a product from a good developer, it’s best to quickly grab hold of the opportunity.
I told her that property should always be based on P.D.F. Price first followed by Developer and followed by the Features. Thus her reasoning of buying just because of the developer may not be the wisest one. She disagreed and said that the risks are low since the demand for the shophouses are high due to that particular developer. Anyway, to cut the long story short, her shophouse is completed and at the moment, she was not doing anything except for continuing to pay for the monthly mortgage.
In the whole row, only a few ground floor shops are opened. As for the price, well, according to her if she sell now, she will get almost the same price as what she paid for. The fortunate thing for her is that both she and her husband are very highly skilled and thus highly paid and could continue paying the mortgage without much issues. When the whole township is occupied in a few years time, I am sure the demand for the shophouses may rise and together with this the prices too.
Let me reiterate on the P.D.F concept. When pricing is overpriced, the only thing which could save the project is TIME. It is certainly not the developer’s branding, regardless of who they are. If the price is right, then we look at the developer’s track record. A good developer will certainly deliver as much as they promised. When these two are good; price and developer, then we look at the features. Please always remember that many developers may have awesome features planned but this is by no means doable all the time. Anyway, if the holding power is strong enough, then perhaps TIME will come to the rescue in the near future. Happy holding and anticipating.
Next suggested article: Renting or selling? Get REN and REAs to help, okay?