WHat other constructive comments to give. People in hdb estates have proven that property market is all emotional and zero rationale. No point giving scientific explanations anymore. Look at huge stagnant resale market. Anyway next time, all these new launch will become resale too.
Hopefully, the euphoric buyers will flow into detached landed market too, but unlikely, they are too poor for that.
And May I ask, Do u know the scientific reason behind this? Let me tell u the facts.
1. This is happening because new projects are being launched at higher prices in recent months, causing new home prices to surge ahead of resale prices.
2.Some new launches are priced higher because developers paid higher land prices towards the end of the land-buying cycle that ended in early July 2018.
3. Even if resale condo sellers want to tag their prices higher, their unit sizes are much bigger than new homes, so they can't increase the per square foot price too much or they will risk hurting buyer affordability.
4. In addition, the number of new sales surpassed that of resales in the first three quarters of this year, which is the total opposite seen in the past two years. For instance, in the first three quarters of this year, 53.1 per cent of total sales, or 7,469, were new sales, while 46.9 per cent, or 6,607, were resales. But in 2018, 40.3 per cent, or 8,795, were new sales, while 59.7 per cent, or 13,009, were resales.
The above shift is due to more new projects being launched this year, and more new homes being transacted.
And that’s what I meant by scientific and constructive reasons of the above scenarios rather than just your Usual standard one liner sarcastic statement. Will such situation remains permanent? My answer is NO. Property price /volume betw resale and new sales is all about supply and demand at different juncture of the cycle.
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