Pricing Your Unit

Understanding Price

As Warren Buffet's mentor, Ben Graham, famously said: "In the short run, the market is a voting machine. In the long run, it's a weighing machine."

PRICE is a result of the push and pull of buyers and sellers. It reflects what sellers will accept and what buyers can afford. Real estate fundamentals are fairly straightforward: Economic activity, household incomes, propensity to save and invest. These are the forces that affect people's decision to buy a home.

Compared to the fluctuations in the global stock market, the Singapore property market has seen steady price appreciation due to careful regulation. Property prices reflect this country's stable economic growth over time, and the increased spending power that affords us in home ownership.

Due to the reduction in market speculation, we may see property prices as a fairly reliable component of valuing a home.

Historical Transactions

DATA SOURCING

We acquire historical transactions for your development or estate from a reliable data source through our paid sources.

How far back we look depends on the unit, but generally extracting more data helps us support a certain price point.

Certain data sources are incomplete, especially for high-end property such as Good Class Bungalows (GCB), where NDAs may prevent timely publication of purchase price. It's important to know where to find complete, accurate data.

DATA CATEGORIZATION

Different sections of projects or estates are priced differently: A commercial development with SOHO units in one tower may sell higher than the other.

By looking at all transactions in an unsystematic fashion, one risks mispricing their unit for sale. This could lead to a valuable unit sold within a week under market value or a overpriced unit not selling for a year.

We categorize data to understand price performance over time. This helps us accurately price your unit to ensure your sale process goes smoothly. Of course, the seller's needs may require a specific pricing strategy that may be deliberately higher or lower than market rate.

DATA ANALYSIS

We analyze price data based on a variety of internal factors: Unit size, facing, floor level, access to facilities, etc. While also taking into consideration external factors: Comparable projects / estates, market sentiment, geopolitics, etc.

We look at price patterns from different angles to derive insights, arriving at a reasonable range in which to list and sell your unit.

Current Listings

COMPETITOR CHECK

We consider what similar properties are selling at: The competitive landscape.

By understanding how our competitors are pricing, we can better position your unit to meet your goals. A unit priced too high above similar units won't be sold.

First we compile listings from popular listing platforms. We ensure this only includes unique listings as some units have multiple agents marketing them, and actual listings. Many fake listings exist with some agents just fishing for leads.

COMPETITOR ANALYSIS

The next step is to go through a socratic process: Why are certain units priced this way? Is a certain price warranted? Why are certain units priced very low?

We analyze data and arrive at answers to these questions to help us best price your unit within the context of the market.

Recommendation

By considering both our analysis of historical transactions and current listings, we derive a simple recommendation to our clients, based upon solid research conducted on reliable, complete data.

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