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The above transaction statistics are based on caveats lodge with the Singapore Land Authority (SLA). However, caution is needed while interpreting the data as caveat lodgement is not compulsory. As such, some property owners may not lodge caveats until they take a mortgage loan [and the mortgagees would lodge caveats to protect their interests on the mortgages].
The context of this study is important. While it was done initially in an attempt to ascertain the ‘Most Sellable’ projects in town, it turns out that the lists can be used to ascertain the ‘Not Sellable’ projects and ‘Difficult to Sell’ project.
- Sellability Checklist
In other words, the above information can indeed act as a ‘Sellability Checklist’ for listing agents in general. For example, if the name of the project in which an agent’s listing is located is not in this list, it belongs to the ‘Not Sellable’ category. If the name of the project is in this list but not being highlight, the agent’s listing may be ‘Difficult to Sell’, for one reason or another.
The study uncovered 23 most sellable projects in the Core Central Region in the past six months and they may remain ‘sellable’ for some time. However, having said that, readers should approach the data with caution because the ‘quantity’ of transactions is just one of the few critical success factors which include location, supply/demand situation in the specific location which has a direct impact on the asking price. The project may sell due to the novelty factor for the time being or because the particular market segment has many ‘flipping’ going on; but the unique factors may change over time due to extrinsic factors such market volatility or change in buyer’s taste or perception. Therefore, agents must continue to keep their pulse very close to the ground and continue to update on the basics of real estate.
Though the findings are at best inconclusive, one thing is for sure - if a project has ‘less than 10 transactions’ in half a year, it must definitely belong to the category of ‘difficult to sell’.
Sam Gian’s take:
The Newton Law of Motion also applies to real estate sales, i.e. a project which is ‘sellable’ remains ‘sellable’ until another more ‘sellable’ project comes along. The ‘sellability’ factors such as the location (e.g. near resort, MRT, CBD etc); earning capability (in terms of rental income), prestige (such as sea fronting or luxury level etc) determine whether a property is a ‘winner’. In this time of great uncertainties, agents should advise their buyers to go for ‘sure winners’. Who are the ‘sure winners’? Refer to the lists again.
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Download:
Synopsis of ‘Basic Customer Psychology’
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