The chain effect in property markets refers to the continuous cycle where sellers become buyers and vice versa, keeping the market moving; when new buyers are diverted to new launches (BTOs and SBFs) instead of entering the resale market, this breaks the chain effect, causing market stagnation because sellers cannot purchase their next home without new buyers entering the market.
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Singapore Property Market Stuck? The Chain Effect Explained! #shorts追加:
Why is the property market not moving today? Is because the Singapore property chain effect is being slowed down. How is it being slow down? Because the Singapore property market the there's no new buyer to come in to buy units because a lot of these new buyer is being pulled away by new launch BTO and SPF sales of balance flat. So if today you are a new buyer, if you go and buy a new launch, you go and buy a BTO or you go and buy a sales or balance flat, you will not enter the resale market. When you don't enter the resale market, you don't buy a property from a resale market seller. The resale market seller 90% of the time after selling away, they have to buy another property. So if nobody buys the seller's property, the seller will not be able to go and buy another resale property.
So if no if this seller cannot buy another resale property, this seller cannot go and buy another resale property. Understand or not? The seller will become a buyer, then the seller will become a buyer, the seller will become buyer. That's how the resale market works. So the resale market need to be pushed by new buyers because the new buyers they don't need to sell property they come in they buy okay they buy then the seller can go and buy another property then you will keep moving then the market will work you see the Singapore property chain effect will move but if nobody enter the market if all the resale all the buyers are are sellers that need to sell so example in the property chain effect all the buyers are buyers that need to sell off their property first then how to start the chain effect nobody to start the chain effect because nobody can sell one nobody can sell nobody can buy then the market don't move this is what is happening today Okay.
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