Working in property allows me to know how developers price their property during launching. Nowadays, I help the valuers to do verbal indication. The bankers will expect a certain price and most of the time, we couldn't give the price they want. They will question us why the value is so low that the buyer bought it in higher price.
Actually, if you buy a unit in a new condominium, the price of the unit is not a market price. During the feasibility study stage of a proposed development, the developer will do market survey to check the current market value of same type of property. After knowing the market value, they will mock-up the price to maximise their profits earned from the whole development. In another word, the listing price the developer put is not market value. It is the agreement between buyers and developer that buyers are willing to buy homes with that listing price.
Actually, if you buy a unit in a new condominium, the price of the unit is not a market price. During the feasibility study stage of a proposed development, the developer will do market survey to check the current market value of same type of property. After knowing the market value, they will mock-up the price to maximise their profits earned from the whole development. In another word, the listing price the developer put is not market value. It is the agreement between buyers and developer that buyers are willing to buy homes with that listing price.
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