Many things are happening currently in the market! Check out our piece below on a quick summary of key pointers.
Mindset not changing even when market is changing
With the property market shifting, mindsets are not keeping up. As participants in the property market have gotten used to the bull run in the market, it will take time for these mindsets to shift and accept the current realities that are upon us.
Today we point out the signs of the shifting market, so you can learn to observe and realise the truths in the situation we face today and in the upcoming future.
Agents asking for feedback
During hot periods, agents would not be asking for feedback. Units are gone before they have the chance to ask for feedback. Nowadays, we see agents asking for feedback after viewings, make of that what you will.
Most sellers will start to see a drop in viewings. For sellers that receive many viewings without an offer, there is an issue with the agent. The agent is not qualifying buyers properly and bringing viewers so the seller will not change agents.
Property listings are the same
There are no real resale supply in the market so there are dummy listings or unrealistic sellers that are able to keep finding agents to list their property.
Tenants realise they are getting viewings recently, and landlords asking for feedback. The rental demand has dropped in general.
New launch selling at TOP
The next few years will see a market downturn, prices are likely to drop. If a new launch that has TOP is not earning money after paying ABSD, it's a bleak outlook. Earning money right after TOP is tough, it depends on holding power for many units.
Resale rental vs New launch rental
Rental price for new launch is cheapest after the first year of key collection. It will be tough for resale rentals in the same area as a new launch as the tenants will all flood to the new launch units available for rental.
Private market Sales
Property above 1.5million would find it hard to sell. 1-1.4million would be able to find buyers. 2-bedders would still move, but 1-bedder is likely to come to a standstill. Properties below 1.4mil will still move, slowing for those between 1.4-1.5mil, and definitely tough for those above 1.5mil.
Prices will not fall for new launches as developers bid high. New launches will not sell out within 1 year, but developers have 5 years to sell the units. Launch day tends to do well, with developers taking a longer time to sell the leftover units. New launch units will still be sold, but they are unlikely to see any profit at TOP.
Byebye En Bloc
Various factors contribute to the end of En Bloc for now. Government Land Sales is one key factor contributing to this phenomenon.
There will be less COV being seen in the market. It's hard for 'prime' units to be selling, with those at prices above 700k. Also, there will be a drop of sellers in the HDB market, with owners not really selling during a recession unless they are forced to. Situations of asset allocation, upgrading will not be seen during a recession.
Sellers in the market
There will be sellers in the market who are trying their luck at high prices, and are not serious sellers. There will always be unrealistic sellers regardless of whether the market is going up or going down.
Listings do not always fully reflect the real state of the market. For a serious buyer, it's important to find the serious sellers.
Signs of the current market
All the above-discussed signs and opinions can be felt and seen by those in the market today.
Being able to realise the current state of the market will allow you to make the right judgements for yourself.
Aaron spills all as he shares the signs of what can be observed in the property market in current times! Watch as he goes through each of his points in the video below.