23/03/2024
Are Property Prices coming down?
Just wanted to share this on 1 recent case! I was serving this Buyer, for resale HDB
The resale HDB buyer placed great trust on her wealth planner, parking a good portion of her wealth in financial services, gaining good interest. However, there was a point to note, her wealth planner dissuaded her from buying a property, yes she was 45 yrs old and dun even own a property under her name.
She had wanted to buy a resale HDB since 5 years ago but didnt went ahead as her wealth planner told her of market uncertainty. FYI, HDB prices are steadily on the rise till even today. When she eventually approached me and decided to buy, she was again advise to lowball for any units she like as her wealth planner advise her so stating facts that prices are already peaking and it will drop anytime, bearing inmind that she is looking at a good location on the high floor with pretty much unblock view.
So will price drop or stabilize?
Statistics show that prices are creeping up still. Why is this so despite so many government attempt to cool down the HDB market with massive influx of new btos?
Of cos there are so many other factors determining if prices will slide. One of which comes down to displacement cost, does the seller needs to sell? After selling, they would need to pay high prices for their next HDB, resale condo or even new launches, staggering at $2000psf for OCR units at Lentor area. Sellers know that if their unit is on the higher floor, renovated, closer to transport nodes and amenities, they would be able to fetch a premium price.
So as a buyer you would ask, if nobody buys from them, wouldnt the prices drop then?
Theoretically yes, that is if sellers have a need to sell. If sellers are looking to sell at good price before they even decide on their next purchase, or had to sell at a stipulated price for their purchased of dream unit, then likely they would not sell unless they achieved their prices.
As such, yes prices would likely drop or stabilize, and likely happen to units that are further away from amenities and lower floors.
On a side note, i would never advise my clients not to buy stocks or any financial investment tools as its not my forte, on the other hand, as a consumer, i felt that there is a need to analyse the market, not become a market experts but to make sound judgement on what was presented to you be it in financial investments or property purchase.
Consumers need to be empowered with datas collected, understand the market trend, historical facts and concept of growth. As a property buyer or seller, are you still putting your gut instinct to buy or sell your property?
Give me a buzz and let me show you how data analysis is crucial for making the right move. Its never just a trust what i say attitude, but rather, hear and analyse what was given and decide logically not emotionally.
Signing off
David Ho, 90671498
Propnex Realty Pte Ltd
