Just saw this interesting article on the Straits Times: Banker buys out 45 of the 55 units of an upscale FH condo in town.
45 out of 55 is kind of absurd, isn’t it? Since it was a bulk deal, he managed to get in at $2300psf, or an 18% discount. For a FH condo in town, that really isnt too bad. It’s 2 blocks away from an upcoming TEL station and just down the road from the Botanic Gardens.
Starlight Suits, Nouvel 18 and iLiv@Grange has also had bulk deals in the past 12 months, and they have all been discounted 22%, 16% and 23% respectively off the individual unit sale price.
Looking at these developments, I think it’s safe to say that upscale units in the open market now are prone to at least a 20% drop in current conditions, and more if the backdrop of everything else deteriorates.
I’m very skeptical when it comes to Singapore property. I know exactly zero people who are looking at any private developments now. The only guy I know that can comfortably buy a private property is very happily renting because it just makes more sense for him to rent than to buy.
On the bright side, at least properties in Singapore aren’t yet majorly screwed like some places in the US, where a mall was sold for $100, or 0.000000625% of its highest appraised price.
I really don’t believe that real estate should be the default first investment that people rush into, but what the heck do I know?
Anyway, my takeaway from this is that prices are going down at least 20%. Let’s see how things go.