Since we are analysing Executive Condominiums, we’ve selected an ideal candidate for our topic on hand.
There was an EC which TOPed during the Global Financial Crisis.
(We’ll reveal the name of this EC in a bit.)
Without the benefit of hindsight, going by pure market sentiment, with markets crashing everywhere, buyers who bought in during the Financial Crisis should have lost money right?
How else could it have panned out?
With stock markets plunging, does anyone really expect the prices of this EC to pick up?
In the same way that the stability of current markets today are threatened by the impact of covid, buyers today are put off from making any kind of foray into the property market.
It is the exact same sentiment today as anyone would have had in 2008, gazing at the colossal fallout of markets everywhere.
"Markets are crashing. It's not the right time to enter."
What do you think? Should prices move up or down from 2008?
From 2008, prices took a slight dip (with an outlier data point) but proceeded to grow from there.
Looking at the chart, if you were pondering about this question, there is no doubt about the answer – buyers DID NOT lose money.
Let’s be a bit more specific. Prices didn’t just grow from 2008 – it grew by at least 49% till a peak in end 2014.
Does it mean no buyers lost money?
We want to provide you with as fair a dissection as we can, and show you the unprofitable transactions as well.
To show you only the profitable transactions would not be a fair discussion.
There were a total of 22 unprofitable transactions, just 8% of the 270 profitable transactions.
The amount of “loss” experienced by the buyers ranged from $34,000 to $138,000.
But here’s something to pay attention to.
ALL of the unprofitable transactions came after the Financial Crisis, and were purchased from 2013 to 2015.
Does it mean that it’s not a good idea to buy later into the lifespan of an EC? Well, not necessarily, but prices do tend to stagnant after a while.
(Contact us for more information on this)
This is in stark comparison to Parc Canberra, which is located a mere 350m away from the nearest station, Canberra MRT Station.
To know more about the effect of proximity to MRT, read our other article Fact or Fiction: Do ECs Near To MRT Gain More Value?