Owner incurs $111, 000 loss despite buying near bottom of market

Properties sold near the bottom of the market are not a value buy necessarily. A 969 sq ft apartment at Icon, a residential project located a short walk from the Tanjong Pagar MRT station, was lately sold at a loss of $111, 000. In November 2009 The seller got purchased the system, after the marketplace picked up through the Lehman Siblings crisis quickly.

He had paid out $1. eighty six million, or perhaps $1, 921 psf, for the purpose of the unit, which can be located over a 40th floorboards. Comparable equipment in the expansion went for the average price of $1, 725 psf last year.

On November 10 this kind of full day, the unit was resold for $1. seventy five million, or perhaps $1, 806 psf, 6% below the price. This calculates to a 1% loss each year over eight years.

A further 969 sq ft device located straight above it had been also bought at a reduction amounting to $179, 500, or 9%. The seller got also paid out a toppish price of $1. ninety six million, or perhaps $2, 022 psf, in November 2009 on the same moment as the first owner.

He sustained losses, inspite of selling the system near the high of the marketplace in 2013. The unit fetched $1. 79 million, or perhaps $1, 837 psf, about July nineteen in a resell transaction, 2013.

So far, there were 60 resell transactions affecting units bought in 2009. Of them, 57 had been sold at money and 3 at a loss. The 57 equipment were recently purchased in a average price of $1, 386 psf. The three models sold at a loss were previously bought at an average price of $1, 958 psf.

The 646-unit Icon was one of the best-selling residential projects when it was launched in 2003, right after the Severe Acute Respiratory Syndrome outbreak. Many units were snapped up at an average price of $650 psf. The 99-year leasehold condominium was completed in 2007.

A total was seen by The development of 611 sub-sale transactions between 2003 and 2010. Sub-sale, which refers to secondary market transactions before the issuance of the Certificate of Statutory Completion, is often seen as a barometer of speculative activities.

The biggest loss in the week of Nov 8 to 15 amounted to $828, 000. It accrued to a 1, 227 sq ft unit in Marina Bay Residences. The seller had purchased the unit in August 2010 in a sub-sale at $3. 83 million, or $3, 120 psf.

A 1, 227 sq ft unit at Marina Bay Residences was flipped three times. The third seller took in a lack of $828, 000.

On Nov 11, the unit was resold for $3 million, or $2, 445 psf � a lack of 22% over a six-year keeping period.

Interestingly, the unit continues to be flipped three times. The first seller, who bought the unit from the developer in December 2006 at $1, 701 psf, made a profit of $612, 300 when he flipped the unit in June 2009 at $2, 200 psf.

The second seller, who flipped the unit in August 2010 at $3, 120 psf, reaped a profit of $1. 13 million. Unfortunately, the musical chairs halted and the third seller, who sold the unit this full month, sustained a hefty loss. The unit is located above the 30th floor. Marina Bay Residences is a 428-unit, 99-year leasehold creation completed in 2010.