According to reports by the media, two apartments that are situated at Turquoise, Sentosa Cove have reduced their price psf when they entered the market. This reduction could lead them to a loss of almost $3 million each apartment.
The two projects are under the same owner. Their land area is about 2,777 sqft each and their acquisition was in November 2007 at $2,600 psf (existing prices at that time range from $2000-$2200 psf). Now, they are up for grab at $4.5 million to around $4.6 million each unit. The average price per square foot for that price range would be $1600 psf.
With the $1600 psf pricing, the owner of the said projects would definitely endure a great loss of about $2.7 million for each project. Though at loss, it is still manageable than the loss experienced by two condos (of similar size) at 91-units Turquoise.
It can be recalled that in July, the two apartments were auctioned via mortgagee sales at $1400 psf. Since the units were bought at $2,550 way back in 2009, the losses boosted up to hurting $3.2 million.
To Tan Tee Khoon, the executive Director of Knight Frank Singapore, borrowers are currently struggling to sell high-end properties and that they find them hard to lease because of the presence of new launch properties at prime districts.
Furthermore, Khoon pointed that the properties at Sentosa are quite distant from the main land (thus giving it an exclusive location) thus making it less attractive to buyers who seek practicability (if compared to houses situated at the main land Singapore).
Assumed by experts, luxurious properties might be repossessed by banks or financial institutions due to large quantity of borrowed money.
New Property to check out at Sentosa is The Residences @ W Sentosa Cove.