Reasoning: An increase in prices with more transactions suggests buyers are willing to pay more, and properties are selling quickly.
Example: A popular neighbourhood with limited supply but increasing buyer interest.
Implication: High demand is from owner occupiers, investors and speculators due to economic growth, new infrastructure, new popular developments like a shopping centre, LRT/MRT station etc.
Reasoning: Rising prices with fewer transactions often indicate a lack of available properties rather than waning interest.
Example: A matured area like Bangsar or SS2, where owners are holding onto properties, causing supply scarcity.
Implication: Buyers face tougher competition, and prices are driven by scarcity.
Price Decrease, Volume Increase:
Indication: Oversupply or distressed sales.
Reasoning: Falling prices with increasing transaction volumes suggest sellers are under pressure to sell, perhaps due to economic conditions or oversupply.
Example: A new development with too many unsold units, forcing price reductions.
Implication: Buyers can negotiate better deals, but sellers may face losses.
Price Decrease, Volume Decrease:
Indication: Weak demand or market stagnation.
Reasoning: Falling prices and low transaction volumes point to reduced buyer interest and potentially unattractive market conditions.
Example: An area losing appeal due to poor connectivity, aging infrastructure, or economic downturn.
Implication: Caution for investors, as the area may lack growth potential in the short term.
Volume Stable, Price Increase:
Indication: Steady demand with limited supply.
Implication: The market is competitive but not overheated.
Volume Stable, Price Decrease:
Indication: Demand is softening or oversupply is emerging.
Implication: The market may be nearing a correction.
High Volume in Low-Price Segment:
Indication: Demand for affordable properties.
Implication: Buyers prioritise affordability, possibly due to economic uncertainty.
Low Volume in High-Price Segment:
Indication: Niche demand or unaffordability.
Implication: Buyers may shy away from premium segments unless the area has unique value propositions.
Disclaimer:
This document, created by City Valuers & Consultants, is intended for general informational purposes only and does not establish any advisory, fiduciary, or professional relationship. While based on established methods, it is not a definitive forecast, appraisal, or valuation, and we make no warranties or representations as to the data's current accuracy or completeness. The data presented includes third-party information, which could contain inaccuracies or be outdated, and has not been independently verified. We disclaim liability for any errors, omissions, or inaccuracies and any loss or damage arising from reliance on this information.
