Transacted property price, measured in price per square foot (psf) is often used as an indicator of market price in all global property research and reports.
However, what happens when the market has very few transactions especially in a trough cycle where transacted units do not represent the median value? Or what if in the previous period, more transactions occurred for smaller size properties eg 1 bedroom while the current period has more 3 bedrooms sold? Using such data can often compromise and distort trend lines as we are not ‘comparing apples with apples.’
Datamine overcomes this distortion by taking the middle floor unit of a 2-bedroom size as a proxy of the median price. During the construction or launch phase, almost all properties are priced incrementally ground up, meaning that lower floors are priced lower and progressively increase by a fixed interval for each floor up. So the middle floor is a fair estimate of the median price. As most developments offer one, two and three bedrooms, a 2-bedroom unit is a proxy of the median unit.
Eg, if a property has 40 residential floors and each level difference has an RM2000 price differential, then the 20th floor 2-bedroom unit is a proxy of the median price.
Datamine then consistently tracks that particular floor unit of the exact same size to maintain consistency.
Eg, During fieldwork, if the 20th floor 2-bedroom unit is unavailable, we will take the closest available floor and factor in the RM2000 price differential per floor to approximate the median price.
This way, we overcome Iskandar region’s low transaction volume that poses a challenge in getting an accurate median price statistic. Hence, asking price of a middle floor 2-bedroom unit is a more accurate depiction of market price.