http://propertysoul.com/2012/10/08/the-fear-of-losing-out-part-ii-eco-showflat/
The fear of losing out (part II: eCO showflat)
October 8, 2012
One Sunday afternoon hubby and I drove past
the second property that I bought in 2003.
Next to it, we were surprised to see the carpark almost full at the eCO showflat.
The site of eCO is an empty slope right in front of Bedok Court. I remember the grass on this slope has been replanted at least twice in three years, probably to hold the loose soil.
On the left of the site is a whole stretch of land built with Terraces and Semi-Detached houses, extending all the way to the coastline.
Mentioned in his book
Secrets of Property Millionaires, this is also where property investor Rayney Wong bought three Semi-Detached houses at $1.8 to 1.9 million at the peak of the property market in 1996, and later forced to sell at a loss of $1.3 million.
We were greeted by a Far East sales representative. As you may know, an in-house sales is usually less experienced than an agency representative.
So when the Far East staff commented that Bedok Court is an HUDC, I quickly bit my lower lip not to let out a giggle.
He was also convinced that we would come back after driving around the neigborhood. Unfortunately, he forgot to take down our contacts before we left.
Anyway, the first showflat showcased a 2-bedder with basic finishings, tiny rooms and no bathtub.
The 3-bedder showflat was no better. It claims to have 1,270 sq ft but looks at most 900 sq ft, losing the precious space for the big balconies. The combined living and dining room is so small that it can only fit a long (rather than round-shaped) dining table. The kitchen is much smaller than the ones in all the 1-bedders I’ve purchased before. The crowd there made the place look even more crammed.
The sales representative told us that there were only two units of 3-bedders left (really?). They are selling at $1.8 million and $1.83 million (i.e. $1,417 psf and $1,441 psf respectively) after discount. The condo blocks are facing each other with no view at all. And the units won’t be ready until 2017.
What? For $1.8 million, I can buy a 2,400 sq ft full seaview 3-bedder at nearby Bedok Court with less than $750 psf. And even a 600 sq ft 1-bedder is asking over $1 million (over $1,700 psf).
He asked us to be fast, hinting at a few group of buyers at the discussion tables ready to place a deposit.
I could vaguely recall when I went to view my nearby
second property in 2003, the 1-bedder was also close to 1,200 sq ft. Unlike the eCO, it came with huge living/dining room and bedroom. And it was asking for only $300 psf!
During the two viewings, I was the only buyer there. The agent almost begged me to buy.
I remember looking out of the window at the breath-taking seaview, wondering why no other buyer came to fight with me for this big ‘gem’ here.
Now thinking back, I am grateful for this. For over the years, the property had generated very good rental return. At the end, I managed to sell it for a 119 percent profit.
At this moment, with this crowd of enthusiastic buyers hustling before my eyes, I couldn’t help but wondering what’s on their mind.
Are they hoping that this property can still give them a reasonable rental return at $1,400 to 1,700 psf? Or it can miraculously double in value when they sell it in a few years’ time?
Do they have the need for accommodation so imminent that there is no other alternative but to buy right now?
Or is it simply the Singapore kiasu culture that makes the fear of missing the boat more frightening than making a big loss?
Originally Posted by phantom_opera
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