Hi,
Resale Condo price is high?
1) Resale market suffered an impact after the 2013 TDSR/MSR cooling measure implementation.
2) In 2014 we saw that there is a negative year-to-year dip of ~5%. From 2015 onwards it slowly gains its footage and moves up healthy.
3) In 2020, due to the pandemic it suffered a 3% of dip, but in 2021 to date, there is a healthy growth of 2.44%.
4) According to past history showed that whenever there is a negative dip, the following year will slowly move up, and this will last for a few years.
5) If we look closely at the trend for the past 20 years, the resale market is more sensitive to the major events happening in the world.
6) Thus although might feel that the current resale market is high, in reality, it is just a feeling. It is clearer to look into a different regions, condos to understand the actual situation.
Cooling measures:
1) Most of the cooling measures implemented from 2006 to 2013, the biggest impact to the market is TDSR/MSR.
2) ABSD does have an impact but mainly is a technical adjustment so that buyers will be more cautious about the purchase. The volume of transactions dipped in 2019 compared to 2018.
3) Although there is an impact when a new cooling measure is implemented, the effect usually is mild. Because the government likes to keep the price under control but not to collapse the market.
4) So if you are planning to wait till the cooling measure before you act, I would think you will lose more than gaining.
5) Example, if the price moved up 10% after 3~4 years. A new cooling measure was announced, the price dipped 5%. Are you gaining or losing? Because so far, the dip is mild even TDSR/MSR implemented in 2013, it is a mere 5.52% to be exact.
Thereafter from 2015 to 2019 it gained 13.97% and dipped by 3.01% in 2020. So if you bought a property in 2014 and sell now, are you make or lose?
6) So you didn't buy anything in 2014, you wait till 2020 and buy because the PPI had dipped in 2020. You actually paid 10.96% more compare to what you bought in 2014.
7) Although the time of entry is important, time of exit is also crucial. A fact you can't be denied is property price is constantly moving upwards. So the later you buy the more you have to prepare to pay higher!
Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at
90110636
, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer
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