You feel that your property is under-priced — a freehold, surrounded by a few 99-years development. These 99-years are newer developments while your freehold is about 10 odd years.
How should you position your property to show its value to potential buyers?
A key reason why all the 99-years around your development is high in PSF, is because they will launch at a later date. When launched at a later date, either through en-bloc or through government land sales, the acquisition price that the developers pay for the land price will increase as the years go by.
Furthermore, the launch price definitely has been set at a higher benchmark, which is why, once the project has TOP-ed, the resale transactions will take the launch price as the benchmark.
Naturally, a newer development, even though it’s 99, could be very much higher in PSF than your freehold development. So when you want to sell your place, it is very important to position your property to show the key value of it so that the buyers know that, the surrounding 99s are already at this PSF, and the square-foot benchmark now entering into this freehold development at this PSF is actually quite reasonable.
In addition, of course, we have to take into consideration how much your banker can match in terms of the valuation. In fact, we can refer to the recent case of the Oasis Garden unit.
It is, similarly, a freehold development, with 134 units, for 10 odd years. It is also surrounded by residences, some 99, which have higher PSF than the Oasis Garden unit.
We managed to sell this property in 30 days, at a good price for the seller, and to a buyer who appreciates its value — a freehold with relatively reasonable PSF compared to the 99-years. We used a comparative approach in the video to highlight the value of the property. The video lets potential buyers know that it makes sense to buy this freehold, that despite the selling price, the overall quantum vis-a-vis the PSF is still very worth it.
