Quote:
Originally Posted by Unregistered
There is no doubt, a good property investment will generate wealth, especially in Singapore. However there is also such a thing as a bad property investment and bad timing. While Oldman and a lot of other Richmen have succeeded and have posted their successes here, this forum hardly ever hears from the Suaymen who bought in 1997.
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1997 and Bishan 8 condo are often quoted as the case study for the worst possible year and project in property investment.
Even salary.sg had this write up dated July 11th, 2010 "At Property Peaks, Don’t Buy"
"Among the 4 leasehold properties listed in the ST article, the worst performing one is Bishan 8. It is now selling at only $802 psf, which is 27% lower than its $1,100 psf launch price!"
At Property Peaks, Don’t Buy | Salary.sg - Your Salary in Singapore
Just an update, Bishan 8 is now back to $1,100 psf as of Q3 2011, so the owners have broken even after 14 years.
Instead of illustrating the weakness of property investment, this case study in fact demonstrates its strength in that even the worst performer has broken even.
What about similarly risky investments like stocks? If we compare apple with apple, the worst performing stock investment like Pan Electric where investors lost all their money, would be equivalent to Bishan 8 selling for $0 psf today.