Chart of the Day: See the plunge in posh home selling prices at Sentosa

And how higher-priced projects are at greater risk of a price correction.

A dearth of transactions in the last 11 months make it difficult to read trends into the micromarket in Sentosa. However, based on available data, condominium prices in Sentosa may be approaching their end-2006 levels, when prices were just about to take off significantly.

According to Maybank Kim Eng, homes purchased after 2006 and sold in the last 12 months lost only 5-21% of their value, in our estimation. These are much smaller than the losses incurred by the units at Turquoise.

Maybank Kim Eng says that the large losses at Turquoise can be partially explained by the project’s higher launch price. Its $2,605 psf launch price is about 75% above the average of The Oceanfront ($1,360 psf) and The Coast ($1,592). These two were launched one year ahead of Turquoise, meaning that higher-prices projects at Sentosa are at greater risk of a price correction.
 

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