Buying a condominium is not an easy task. It involves research and careful decision-making. After assessing the price of property within the reach of a potential buyer, he must match this with the prevailing prices.
Using online sources such as Land Price List, the potential buyer can get an idea of the prevailing house and lot or condominium prices. These sources provide updated information about new properties for sale or for pre-selling. Other online sources provide details on furnished, semi-furnished, or unfurnished condominium units.
Condominium pricing is dependent on economic forces. In a healthy economy, many companies build properties. This follows the increased demand for the product. In an affluent or upwardly mobile economy, there are more people willing to buy condominium units. This creates a demand, which builders and developers address by putting up new buildings.
Of course, there is market segmentation between different profiles and corresponding prices. In recent years, due to the increased building starts, there was a slow down in price increases for the middle market. At the same time, the low-end of the market maintained its upward pricing trend.
Not a Bubble
A bubble occurs when the pricing heats up, creating a large demand that then explodes if the economy cannot maintain the prices. In short, the demand suddenly drops and the prices become higher. Developers cannot take their prices below a certain minimum, and plenty of units are left unsold. This situation can take a long time to remedy, with prices wallowing in stasis.
There is no indication of a bubble at the moment. Even if there is a price slowdown in the mid-range market, the other tiers are not affected and demand continues to grow, along with their prices.
Condominium pricing is not an exact science. For a buyer, the pricing trend is never an issue, but what’s important is to address the individual’s need for shelter in a secure, safe community near the office or school.