Now its buyer’s property market in Pakistan
Buyer’s property market
A buyer’s property market can be defined as a market where properties are more than the buyers. In this case buyer has more choice and negotiating power. In buyer’s market, buyer gets the cheap deal as buyer has more property options.
Seller’s property market
A seller’s property market can be defined as a market where buyers are more than the properties. In this case seller has more negotiating power. In seller’s market, seller gets the more value of property due to shortage of properties.
How to know that its buyer’s or seller’s market?
Economic condition is also a good indicator of buyer’s or seller’s market. The cities with booming economies create lot of jobs with better living facilities. People definitely move towards the cities that have economic boom. In the cities where economy is booming there will be more demand for properties and it will be definitely a seller’s market. On the other hand, cities with declining economies are the cities where property demand is low and it property market will be a buyer’s market.
Rise and fall in property prices
Property price trends are also good indicators of buyer’s and seller’s market. Property price rise is the indication of fewer properties and more buyers. Property price fall is the indication of more properties and less buyers. When property prices are rising then its seller’s market, but when property prices are declining its buyer’s market.
Pakistan’s property market is currently the buyer’s market
Since June 2016, we have entered the buyer’s property market in Pakistan. Due to tax amendments 2016, property prices are constantly falling. Price fall can be seen in every city of Pakistan. Due to desperate sellers who want to minimize losses, there are more properties in the market than buyers.
Biggest victims of price fall are Karachi, Lahore and Islamabad. These cities saw huge price rise due to massive investments in reality sector. Now sellers have reduced the prices up to 30-40% but even cannot find buyers. Buyers are in watch & see mood and are waiting for prices to be bottomed out first.
Until now prices have decreased by 35% in many areas but more price fall is on the way. Prices will keep falling to the point where genuine buyers with white money can afford to buy properties, as FBR has totally blocked the flow of black money into real estate sector. Hopefully late December or January will be the time when prices will be bottomed out. After that we will see some activity on property market where genuine buyers with white money will start buying properties.