Some points from the Matusik study:
- More than half the sales were "rebated sales", making it hard to determine the actual sales price. Most rebates were given early in the sales process.
- It took about 2 years to sell the 177 apartments in the complex.
- Only six apartments have been purchased by owner occupiers. This is a very low percentage. (My rule is to purchase only in buildings where there is a high percentage of owner residents in the building.)
- 70% of the buyers appear to be Chinese, either from the Sunnybank area, Southern States, Singapore or elsewhere.
- A number of apartments are now listed for resale, at about 10% below the recorded purchase price (before any rebates are taken into account).
"Too often the last dwellings in a new project are discounted [by the developer]. This undermines the project’s overall value; is very unfair to those who bought early in the piece (regardless of what incentives were offered) and also reduces the developer’s profit (assuming there is any!)"