Factor 3: Supply & Demand
The most important factor to determine the property market is still the supply and demand.
Developers know the supply and demand very well before they decided to bid the land or collective sale.
Let say if I want to buy a project. I will look at the supply and demand of the region.
But how to check the supply & demand?
For example, Parc Clematis near Clementi MRT. You look at the supply near Clementi MRT, how many of them?
Now we have The Trilinq, Regent Park, and Clement Canopy. In the near future, we have Parc Clematis and Clavon. And Clavon will be the last new launch condo in Clementi. So eventually, total there will be only 5 of them the walkable distance to the Clementi MRT. As compared to Lakeside MRT, you will realize that actually Clementi could be undersupplied for the private condo. (8 projects).
There are 3 ways to check whether the demand is high for a particular location.
Here, I will share one of them which is using the rental yield. Higher rental yield could be an indicator of low supply high demand. Homeowners with high rental yield are reluctant to sell their properties. Because they are comfortable to collect high rental income and not easy to find another property with the high rental.
For your info, Clement Canopy 2-bedroom rental can fetch up to $3,600. This could be an indicator of high demand.