Condo units sold during the 1996-1997 property peak are now selling at below their launch prices. This is reported in yesterday’s Straits Times. But in the report, no one stated the obvious:
You are taking a big risk if you buy at a peak.
The ST article listed 3 freehold properties that are still “under water”. The Chelsea Gardens at Walshe Road is now selling at an average of $1,508 psf, almost 21% lower than its launch price of $1,900 psf. Similarly, Gardenville (also at Walshe Road) and Avalon (Anderson Road) are selling at around 16-17% below their launch prices.
Among the 4 leasehold properties listed in the ST article, the worst performing one is Bishan 8. It is now selling at only $802 psf, which is 27% lower than its $1,100 psf launch price!
We are now again seeing record propery prices. If you buy now, and let’s say you are as unlucky as the Bishan 8 sellers, you could also make a 27% loss.
Don’t be like this couple.