This is also happen even to those older developments near MRT stations as well. For eg, The Queens which is just across Queenstown MRT. The price become stable since 2014 whereas price of newer developments like Ascentia Sky and Metropolitan shoot up in 2017. This trend is visible in almost all areas especially if the area have upcoming new launch. You may wonder why despite premium price in same vicinity, many home buyers choose to buy new launch rather than resale unit. As the examples shown previously, entering at right time and exit is crucial.ย
When developer acquire a site, it will seek financial from banks to fund the construction stage. Banks will therefore calculate its funding management and advice on what price point developer need to sell in order to make a profit. Hence, when you purchase from developer you are assure that you are able to secure a loan so long you are qualified within TDSR framework.ย
However, price is different when buying from resale market. Individual sellers of specific development will have to price according to valuation of most banks so that potential buyers will able to buy over. Banks will take into consideration base on past transaction of the development and not the aesthetic factor of the unit etc. Hence if seller price the unit over the valuation, he / she may have to secure the buyer for longer period of time.
Purchasing a new home require careful planning and not all units are able to replicate the ‘formula’ always. Speak to us today for more sharing insight at no obligation by simply connect 