Pricing a property is not simply a matter of looking at the last transaction in the development and adding a little more.
Recent transactions are an important starting point, but buyers do not make decisions using historical transactions alone. They also compare what is available today.
That means examining competing listings. If several similar units are available, buyers will compare price, floor level, facing, condition, layout and presentation before deciding which properties deserve a viewing.
Individual property characteristics matter as well. Two units of the same size in the same development can command different levels of interest because of their views, orientation, renovation, floor or layout.
The initial asking price also influences the launch of the property. Pricing substantially above where buyers perceive value can reduce enquiries and cause the listing to remain on the market. Repeated price reductions later may weaken the property's negotiating position.
This does not mean pricing cheaply. It means positioning the property at a level that can be supported by evidence while allowing an appropriate negotiating margin.
Our View
The objective should not be to advertise the highest possible asking price.
It should be to achieve the strongest defensible selling price the market is prepared to support.
Good pricing creates interest, protects value and gives the seller a credible position when negotiations begin.