Our property prices are market driven or sentiment driven?

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?

Hungry Ghost month avoid buying property?

You may have heard from the older generation, they said that buying property during Hungry Ghost month (Lunar Seventh Month) was a taboo. Their explaination would be : buying a property during that period would invite the "good brothers" into the new house. Thus, problems may arise. So is this true?

Well, if you were to look at past property transactions volume, most probably you would notice that transactions during Lunar Seventh month tend to be fewer. However, of late (recent years), this trend has changed.

People are buying properties in Lunar Seventh month, the change of trend could be due to buyers are young generation, who do not believe in such belief. Or is it high rising property price have made people to forgo such belief and those who did not jump on the boat fast enough to capture the low price are to regret later? Well, maybe you want to share your view on this?