Understanding Days on Market (D-O-M) and what does it mean to Sellers and Buyers?

In Singapore’s fast-moving property market, Days on Market (D-O-M) is a crucial factor that both sellers and buyers should be aware of. Whether you’re selling an HDB flat or a private condominium, how long your property remains on the market can significantly influence its final sale price and buyer interest. This article will explore what D-O-M means, why it’s important, and how it can impact your decisions in the Singapore property market.

What is D-O-M?

D-O-M refers to the number of days a property remains listed for sale from the day it's put on the market until the day it goes under contract or is withdrawn. In Singapore, this varies depending on the property type. For example, HDB flats generally have a shorter D-O-M compared to private condominiums, reflecting the difference in market demand for these segments.

Why D-O-M Matters for Sellers

1. Avoiding the "Stale" Effect

   • In Singapore’s competitive property market, properties that remain unsold for too long risk becoming “stale.” Buyers may perceive long-listed properties as either overpriced or problematic. The longer your property stays on the market, the more likely it will attract lowball offers. Pricing your property correctly from the start is essential to avoid extended D-O-M.

2. Price Strategy

   • Overpricing is one of the key reasons properties linger on the market. Sellers often set higher-than-market prices hoping to secure a premium. However, this can backfire as buyers become more informed and cautious, especially in cooling markets. As such, pricing your property too high initially may lead to prolonged D-O-M and, eventually, the need for price reductions.

How to Reduce D-O-M in Singapore

1. Price It Right

   • A well-priced property is likely to attract more interest and close faster. To price your property effectively, it’s important to consult with experienced real estate agents who understand local market trends and comparable sales. Listing at a price that reflects current demand can drastically reduce D-O-M.

2. Enhance Your Marketing

   • In Singapore’s digital-first market, good marketing can make a huge difference. High-quality photos, virtual tours, and detailed descriptions are crucial to attracting the right buyers. Strong digital presence on property portals and social media platforms can also increase visibility, shortening D-O-M.

3. Understand Market Conditions

   • Singapore’s property market is dynamic, and market conditions play a big role in how long a property remains unsold. In a seller's market, properties typically sell faster due to high demand and limited supply. On the other hand, in a buyer's market, where supply exceeds demand, D-O-M tends to increase, requiring more strategic pricing and marketing.

Buyers: How to Use D-O-M to Your Advantage

1. Negotiation Leverage

   • If you find a property with a long D-O-M, it could indicate that the seller is more motivated to close the deal. This can give buyers an edge in negotiating for a better price or more favorable terms.

2. Avoid Rushing Into Hot Properties

   • Conversely, properties with a very short D-O-M might lead to rushed decisions and competitive bidding, especially in high-demand areas. Understanding local D-O-M trends can help buyers avoid overpaying due to market pressures.

Conclusion

D-O-M is a key metric in Singapore’s property market that both sellers and buyers should understand. Sellers can reduce their D-O-M by setting the right price and investing in high-quality marketing, while buyers can use D-O-M insights to negotiate better deals. Being aware of this important metric helps both parties make informed decisions and succeed in their property transactions.