Is This So Called Prestigious East Coast Project Doomed For Buyers?

If you wanted a freehold, so called prestigious condo unit along East Coast, thenĀ Meyer Mansion condo must have caught your attention before.

Developed by the famed Guocoland who tends to overpay for en-bloc and even more extremely overcharges for its own development, as we had discussed before, this project along Meyer Road is heavily overpriced. That does not mean it’s quality or other elements are bad, but it’s price is grossly and artificially inflated, not due to real demand, but because since they have a habit of overpaying, they have no choice but to pass on these extra costs to the consumers like you and I in the form of exaggerated numbers.

There are usually a few different types of property buyers in Singapore:

Group A: Those who wish to purchase a good value unit for themselves and sell it when the price is right or pass on to their descendants if they love it

If you belong to A, then negotiating a good number with the agent should result in an eventual good deal for you, if you can get a decent and very sizeable discount off it. After all, the quality build and freehold status is good for this purpose.

Group B: Those who are willing to pay whatever it takes to get the most prestigious unit to show off to their lower SES acquaintances

Well, you probably can show off to those HDB dwellers, but the real rich are not impressed by it. They can easily afford a landed property right along Meyer Road as well, which is freehold too. So, not the best bang for the buck if you belong to this group here.

Group C: Opportunists who purchase hoping to flip upon TOP or a few years after that

I would say that this project is a good option for this, because freehold properties tend to appreciate faster, and hold its value more steadily. But the downside is that this is being built by one of the greediest ones around with sky high and non-sensible asking prices. So, like group A, only get it if you can get an extremely significant discount off their asking, or flipping for profit is near impossible.

Group D: Investors who buy for rental cash flow and long term appreciation

Forget it. It is not anywhere near an MRT station despite the agents representing it saying so. As you can see from the arrow below, it shows the scale of the map below. The two black circles represent the estimated locations of the upcoming MRT stations in that area. It is not walkable, and bus services are far and few between. Expats look for convenience as a big factor in determining where rent – they get none here. Yet if you buy a unit here, and blindly pay the stupid asking that the Guocoland is asking for, you are forced to keep rental rates high. So which smart, high flyer expat will pay you good rent? None!

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