18/03/2024
Recently I have had multiple clients sharing with me their concerns of how property prices are so high, it is therefore time for the property market to dip or worse, crash.
What is the basis for such a conclusion? Mostly, it is because of international economic uncertainty (war, recession, political instability) or the notional statement "what is already so high must come down".
Interestingly and conversely, most homeowners wanting to sell their unit would also share that their neighbours recently transacted their homes at $###Xpsf and therefore they think that they should also be able to command similar if not higher pricing since they have a better facing or are located on a higher level.
To achieve new market highs for their sale unit would bring them much joy. The underlying message is that there is someone out there who sees value in the home and are confident that our economic fundamentals and track record make it safe to enter the property market today even if it means they have to pay a slight premium for their choice unit.
Is the market really slowing down? With the successful launch of Lentor Mansion by Guocoland of more than 75% of 533 units on the first weekend of launch is evident enough to show the liquidity in the market. I previously also shared my thoughts on Lentor Mansion being a fantastic product checking all the boxes for a sought after development. I'm glad that my thoughts were affirned through their performance over the weekend.
Lentoria may not have performed as well like some other projects which have launched in 2023 and 2024 to-date. I attribute this to the fact that people today have the luxury of choice unlike in 2022 where there were so few launches that every launch hit a very high % sold on launch weekend.
This trifactor of being spoilt for choice, higher interest rates stemming today's demand and competition amongst developers in pricing their projects rightly has created this for buyers who are sitting on the fence to seriously consider taking action.
What do you think of the market? It’s already coming to the end of the 1st quarter of 2024, we are inching closer and closer to the 2nd half of 2024, which we are anticipating for The FEDs cutting FED rates down 3 times, at a minimum of 25 points each round.
When bank interest rates fall, would more or less people buy properties? With more people buying, would the price increase, decrease or stay put? What upcoming projects are people waiting for? What is the next project which would command such a successful launch like Lentor Mansion? If you would like to have a chat to find out more on the latest property market trends backed by a , do reach out for a chat!
Jason Yeo
HP: 94515026
Most Trusted Realtors
