A 3 bedroom unit on #22-17 (1227 square foot) is now going for $1,786,190. The developer has definitely become very 'sincere' overnight in cutting prices to move units.
I had a blog post in September where i mentioned not to sell your flat if you can and that a close relative of mine has sold his flat in anticipation of a drop in price. Well, as an update, this relative of mine couldn't take it any more as he see the prices moving away and finally bought a studio unit (635 square foot) for $1.288m at D'Leedon on 29 December 2012 only to see developer cutting prices two weeks later when Round 7 was enforced.
I think the simple takeaway is this: Don't have a naked position in the property market.
There is a Chinese saying "衣食住行", meaning that a roof over your head (a place to stay) besides clothing and food is a basic necessity. I guess once you loses your roof, you probably will lose your head as well and start thinking and behaving irrationally.
I had a reunion dinner with my ex-colleagues two Fridays ago where one of them thanked me for advising her not to sell her executive condo in 2010. She had wanted to cash out because she thought the prices was high and wanted to rent a place near a good primary school for her eldest son. She is also expecting a price correction. I remembered telling her back then, "don't do it because you only have one property and you can never catch the top and the bottom". With the benefit of hindsight, if she has sold in 2010, she will probably be paying rental for 2 years and suffer the heartache of seeing the prices of her executive condo setting new records in 2012.
After thanking me, she went on to say, "well, i have just sold my condo at record price in December, what would you advise me to do next?" She has just sold her executive condo in Chua Chu Kang area where she has stayed for the last 13 years. I think she will probably get back around $1.2m in proceeds and that it has been fully paid for.
She then asked me "Should i....
(1) Rent a place and wait for prices to drop or
(2) Buy 2 new properties with the cash received or
(3) Buy one property now and buy another one a few years later.
What would you advise her? I will leave that for your thoughts. Feel free to comment, especially if you are thinking of taking a "naked" positing in the property market as well. :)