The property cooling measure continues to take effect on private properties. It was reported that:
- 4.2% of secondary market transactions in 2014 suffered losses. In 2013 it was just 1.96%. In 2012, it was 1.5%. In 2011 it was 1.8%.
- The biggest losses were mainly in districts 4, 9 and 10.
- There was an apartment at Idyllic Residences which was sold at $565 psf in August 2014. The purchase price was $904 psf representing a whopping 38% lost!
Obviously this is a buyer’s market. I have a number of clients who have huge amount of cash just waiting to jump back to the property market. They must be so happy. Yet, those who had overcommitted to properties have everything to worry about - declining property prices and increasing interest rates.
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