Recently, I witnessed a few property launches and surprisingly to know that all the launches achieved 100% sold out rate within a day! Amazing, I must say. To think that some of the new projects are located in the infamous locations, but such locations did not even deter would be home-owners from buying.
I wonder is our property prices are really market driven? Or sentiment driven? Now, assuming that our property prices are market driven, then in such case, we are talking about a pool of buyers out there are eyeing for the same property but due to limited supply, this has driven up our property prices. So fair enough. But question is this the real cause of it?
In the recent launches, I also noticed that property agents would ask buyers to give their blank cheques first. According to the agents, this was to help buyers to place a booking of their choice unit. And I have to mind you, all those buyers were giving their blank cheques without knowing the selling price!
And the reason why the prices were not out was because these so called new launches were yet to be officially launched! Thus, property agents were unable to provide an exact selling price. So in order not to miss the boat, most buyers would give their blank cheques without even a second thought, after all there is no penalty fee involved if one decided not to buy later.
In most cases, due to the overwhelming response, most of the recent launches even had balloting system. And only few lucky buyers were able to get their units. Thus, selling prices were made known on the launched date. So is the case of sentiment driven market? Well, maybe you would like to share your view here?
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