If you have been reading the Straits Times' Classified over the past few weeks, you might have come across several adverts on units for sale at Pine Grove. These are probably owners who are trying to cash out after the en-bloc announcement.
For those who have been following the local property market news (or our blog), you will know that Pine Grove is going en-bloc with a reserve price of $1.7 billion. This could work out to between $2.1 million and $2.75 million per unit, depending on the size of the apartment and the development charge.
The wife and I are particularly amused by this advert:
Assuming owner of a 1700+sqft unit (which we understand is the larger unit type in the development) will eventually get $2.7 million when en-bloc happens, you are asking someone to splash out about $2.4 million now in the hope of getting $2.7 million later. And if the en-bloc fails (again), the unit will probably revert back to the current market price of $1.5+ million (or lower, depending on market condition then). So we are looking at a possible upside of $300K versus a massive downside of $900K.
Good investment?! We'll let you consider the maths...
Granted that a seller is entited to quote whatever price he desires. But then again, one should not assume that the rest of the world is... well... intelligently-challenged.
Smiley Face
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