10/06/2021
Is the Resale Property Market very hot now? 🔥🔥
Based on what I’m witnessing on the ground as a Property Agent, it is indeed RED-HOT. The confluence of various factors such as the Pandemic, delay in construction of new homes, and the need to Work From Home has indeed caused a flurry of buyers into the resale market.
This present situation reminded me of the period 2012-2013 where homes can be sold in one single day (flying off the shelves so to speak). Sellers are calling the shots now when it comes to negotiation and buyers have no choice as the matter of the fact is current supply of ready homes are really tight. There is a supply-demand imbalance In the property market right now ⚖️
Below is a case that I personally handled for a buyer recently that demonstrates the kind or resale market we are in, even in the face of a pandemic that will not go away anytime soon.
✅ Live Case : Undecisive buyer who regretted taking 1 day to think
Have been showing this buyer around and viewed a couple of 4-room HDB resale flats. The most recent unit they saw was on the Mid-floor facing the park. The only concern they had was the potential “noise” they might be getting from children playing there, hence the buyer requested for 1 day to think before making any offer to the Seller’s agent.
Unfortunately, when they were ready to put in an offer the next morning, another group of buyer had come in, just the night before and gave the seller’s agent a much higher offer than what my buyer had intended to offer. The deal was sealed and too late now despite my buyer willing to out-bid. Well, SPEED matters in this current market 🔥 and just a few of hours of hesitation can cause you to lose out on your desired property 😅 In the end they settled for another unit which was on the 2nd floor, ended up paying more but I guess they could not wait any longer. Till now, their frustration remains. I can totally understand!
Whether we like it or not, the HDB resale market is rising fast and prices have now recovered to 2013 levels (the last time such exuberance was in full swing). Back during 2012-2013, Cash-Over-Valuation (COV) can go up to as high as $100k and people actually paid that kind of $$$ without batting an eyelid! Fast forward to 2021, I am witnessing before my eyes a similar kind of Euphoria in the HDB market as demand outstrips supply.
Conclusion: For home buyers especially first time home seekers, do not get overwhelmed with the emotions and fear of losing out. If you are in need of your own place urgently, keep an open mind and be willing to explore areas outside of your original intent, as that may offer you a wider choice of options and not put you in the position of “I got no choice but to pay this price”.
Things are moving very fast and a word of advise for buyers: when you see a unit you like, be swift and decisive and make an offer quickly which is within your budget. Take a step back and if possible, consult your family members whether that asking price is reasonable. When you get swept up in the emotions, it can be hard to think clearly.
Lastly, if you are not familiar with the intricacies of navigating the resale market, try not to do it on your own. The seller’s agent represent the Seller’s interests, not your interests. My advise to you is to engage a Property Agent to help represent and protect your interests as a buyer. That will save you from a lot of emotional turmoil from having to face competing bids, frustrations over offer rejections, and most importantly from overpaying for a unit. No point saving that couple of thousands of dollars.
Have a property-related question? Do reach out to me below. Always happy to speak! Stay safe!
Email: [email protected]
Website: https://www.jake.sg
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