It’s been nearly a year since we last wrote our article on the 13 condos with the most unprofitable transactions. How time flies. I’ve previously gone into further detail with why Stellar RV and The Tennery performed the way they did, and this time, I decided to change things up a little to set my sights on the East instead..
2017
As all of the above are in the same general area, there will not be a huge disparity in quality of location (barring a longer or shorter walk to the MRT). However, we can already see some interesting developments to focus on.
Grandeur Park Residences, which is four years newer than Urban Vista, comparatively isn’t priced all that much higher than The Glades.
If we’re willing to settle for older properties, we can see that East Meadows is priced only about 7.7 per cent higher than the Tanamera, although it’s newer by seven years.
From here, you can take a closer look at the properties, to note the discrepancies. For example, Grandeur Park Residences is bigger and much more crowded than Urban Vista, with 722 to 582 units; so you will be in a squeeze with more people.
Notable issues:
Stellar RV saw some grumbling over pricing when it first launched. Consider the average price for new launches in District 10, back in May 2012:
The average for the district was $1,636 psf. Now look at Stellar RV’s pricing at the same time:
The median developer price was $2,039 psf. Granted, the small unit sizes meant a lower quantum (around $1.2 million) – but the diminishing shoebox trend, along with the notable price gap, already left some market watchers wondering if it had much room to appreciate. This led to a weak initial showing, with only 20 transactions on its launch weekend.
In addition, Stellar RV has only small units. The absolute largest units at Stellar RV are 936 sq.ft., with most units being between 506 to 517 sq. ft. It’s clear that this development is aimed at landlords, who are disinclined to buy in such a weak rental market.