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Overvalued or undervalued properties?

"Price is what you pay, value is what you get" - Warren Buffett

A property's market price and market value also differs as price is determined by a willing buyer and willing seller for an arm's length transaction, whereas market value is assessed by a licensed valuer. However, Value to each can be very subjective as interest, needs and goals differ from person to person and each's portfolio. Not forgetting that a difference between price and value also impacts the financial threshold of buyers.

Taking these personal considerations aside leaves us with looking at the wider fundamentals and price analysis of a property with a systematic approach. See Applying fundamental and technical analysis to property: Qualitative, quantitative, and technical approaches to analysing a property.

As, physical property is heterogenous, illiquid, comes with higher transaction cost and longer transaction time compared to stocks which are homogenous across its units, more liquid, lower transaction cost and have shorter transaction time. These factors coupled with an individual's personal interest, needs and goals adds to the complexity of each's valuation.

"Only when the tide goes out do you discover who's been swimming naked" - Warren Buffet.

Hence a thorough analysis, risk management/ safety net as well as entry and exit safety strategies together with each's interest needs and goals will assist in determining whether a property is overvalued or undervalued to each.