DLD transaction data vs. market value — why they diverge.

DLD registers the price at which a specific transaction was completed and registered. It is a data point, not a market indicator on its own. A single transaction price reflects that specific buyer and seller's circumstances — which may include related-party pricing, distressed timing, off-market negotiation, or a transaction structured to include or exclude certain costs and fittings.

• Timing lag. Registration date may trail agreement date by weeks or months, during which market conditions shift.
• Non-arm's-length elements. Family transfers, developer buy-backs, or related-party deals often clear at non-market prices.
• Inclusions/exclusions. Furnished vs. unfurnished, parking allocation, or service charge arrears can shift effective price without appearing in the headline figure.
• Outliers. A single unusually high or low transaction in a small sample can distort a simple average if not screened out.

A defensible valuation doesn't just average recent DLD transactions — it screens the dataset (removing related-party and clearly distressed transactions), adjusts each comparable for differences versus the subject property (floor level, view, condition, size), and time-adjusts older transactions to the valuation date using an appropriate market movement index.

What this means for clients

If you're relying on a single "comparable" transaction price to challenge a valuation, ask whether that transaction has been screened for arm's-length status and adjusted for property-specific differences. A properly reasoned valuation report will show its comparable set and adjustment logic explicitly — that transparency is what separates a defensible market value opinion from a simple data lookup.