For those who are already using Pivot Table, they have been sold on its benefits. I am one of them too. But many who have not done so wondered what is so good about it that caused others to fall head over heels in love with Pivot Table. The reason is very simple. It is a great analytical tool which helps you look at a huge chuck of data in multiple dimensions. Let me explain with the example on the Singapore private property prices.
Imagine you have no idea how the private property prices are like in Singapore and is keen to purchase a property in Singapore. You approached an agent who asked you some of the basic questions like where you would like the property to be in, how big is the unit,what is your budget, etc. Then the property agent will show you some properties in the area that meets your requirement. As the professionals always say, you must do your due diligence when you invest in a property. So as you move closer to sign on the dotted line, the following questions are likely to come into your mind:
- Can the price be lowered?
- Am I buying at the highest price?
- What about other properties around the area?
If you ask the agent, he will properly offers answers like :
- You must like the property,
- It is everybody’s guess whether prices will go up or down, etc.
- There are always risk involved when you invest in a property. You must be ready for the downside.
A lack of information will cause you to take on more risk than a commercial property company who has a higher chance of getting that good deal. and what is the competitive advantage they have that you don’t have? Data and Analysis. Your analysis at this moment is based on what other people tells you and what the property agent tells you. But if you can get hold of the historical records, you can then make an informed guess like the commercial property company.
So imagine if you are ready to invest in a property and don’t know which area you would like to invest in and at what price should you sign on the dotted line. Using Pivot Table and data freely available for download on URA website, you can make use of Pivot Table to first identify the district you can consider. Then using the data, drill into the specific area and identify condos that are within your expectation. You can further plot the historical records to find out how the prices have moved for the past 24 months, all by using Pivot Table. With this simple analysis, you are likely to make an informed decision and invest in a property with lowered risk, or should I say with your eyes open. If you are keen to get hold of a copy of the data and analysis, put down your intention as a comment. If there are enough interest, I am keen to organise a session to share you the data that I have collected, demonstrate the power of Pivot Table and share with you my analysis.