What Pasir Ris 8 sales data reveals

By Ida West

September 3, 2021



SINGAPORE (EDGEPROP) - Pasir Ris 8, a newly-launched integrated condo, has been in the news recently for its spectacular sales, which prompted a DBS analyst to attribute this to the sign of an asset bubble. Now that the dust has settled and the transactions are published, we decided to look deeper into the sales data at Pasir Ris 8, block by block and stack by stack, to uncover the truth and potential learnings.

Why Pasir Ris 8?

This condo is a great case study for property seekers and professionals to better understand the intricacies of pricing. The fact that all the transactions occurred within two days removes variables such as the passing of time, and thus changing market expectations which may distort the study of pricing from the equation. The development is also sizeable, which averages out the outliers. Additionally, Allgreen, the developer, was able to adjust their prices multiple times during the two days. This meant that the caveated pricing accurately reflected the underlying demand and supply of a well-functioning market, in other words, the actual price (or very close to actual) buyers are willing to pay for. (In contrast, a dysfunctional market meant that either sellers have too much supplies that nobody wants or buyers have demands that can’t be met. For example, during the toilet-paper rush at the beginning of the pandemic, most stores ran out of toilet paper because they were not able to adjust their pricing even though buyers may be willing to pay more for them. The end results were that stores ran out of toilet paper, buyers went home angry and nobody knows the real price buyers are willing to pay for toilet paper).

Having looked through every single transaction, now let us reveal what our analysis of the transactions can enlighten us about the real estate market.



Read more at:
https://www.edgeprop.sg/property-new...s-data-reveals