Martin Lee @ Sg
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Unsold High End Property

There was an article in today’s Straits Times which reported that as many as 1000 completed high end condominium units were still unsold.

Twelve of these developments were completed this year and each had more than ten units still unsold as of last month. Ten developments were in prime areas.

Most of these projects were launched in the property boom of 2007. Some developers even chose to hold back from selling their remaining units as prices are still below their previous peak. Selling at a lower price would be detrimental to existing owners.

A few of these developments even had a large percentage of unsold units. Looks like some developers got burnt jumping onto the bandwagon bidding for land at aggressive prices.

For existing oweners/investors of those units, the unsold units might put a damper on the prices of their units as buyers might prefer buying the new units. You do need to have long holding power for property.

Development, Total number of units, Unsold units as of Oct 2010

  • Paterson Suites, 102, 79
  • Belle Vue Residences, 176, 61
  • Lumiere, 168, 51
  • Turquoise, 91, 47
  • Latitude, 127, 45
  • 8 Napier, 46, 42
  • Riveria Gardens, 49, 23
  • Orchard View, 30, 21
  • The Orchard Residences, 175, 19
  • 18 Shelford, 19, 15
  • Aalto, 196, 55
  • St Michael Regency, 49, 13

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2 comments
Nuts says 8 years ago

In recent months, high-end condos are tapering off their price appreciation. Most investors with that kind of money have been going for landed property in the last 4-5 months. Just like stocks and any other financial assets, there is an intrinsic & speculative values. Central condos have appreciated by the most since Apr 2009 and many people feel that prices have overshot. They are now looking at landed for better value.

Mass mkt condos still quite strong though, thanks to relatively strong job prospects for middle-class types, and promoting desire and confidence to upgrade. But definitely will see slowdown by late 2011 or 2012, due to tens of thousands of new units coming online.

Long-term property investors may want to hold off till the next major recession, as prices are really quite toppish by now. Don’t think property prices can continue to go up another 20% without some strong correction. In the meantime, if still bullish about local property in the short-term, might as well speculate in the major property developer / contractor stocks.

Reply
    lioninvestor says 8 years ago

    I always feel that rising property prices has to be supported by rising income. If one is faster or slower than the other, it will need to pause to wait for the other to catch up.

    Reply
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