“Boomtime property buyers now big losers” was the headline in a local newspapers today. The article featured property transactions which were losers. For example, the biggest loser went to the seller of a condominium unit at Seascape. The condominium was bought for $11 million in year 2011 and was sold for $6.35 million in October 2016 at a loss of $4.65 million. This translated to a loss of around 42% in capital. Seascape is a waterfront condominium residential development on Sentosa Cove and during boomtime, $11 million might seem “reasonable” for the seller (then the buyer) to purchase the property but now against the current macro economical backdrop, the seller accepted the sale tag of $6.35 million.
I would tend to believe that buyers of some of the pricey residential properties like for the above case might do it for property investments, thinking that the property they …Read the full article →