Resale prices at luxury projects in neighborhoods popular among foreign buyers took a hit in 2014, raising concerns that foreigners could exit Singapore’s real estate market en mass.
Last year saw several high-end apartments in the city-state’s exclusive enclave of Sentosa Cove and the highly sought after address of Orchard Road sell at hefty losses.
The highest loss-making transaction was a four-bedroom apartment at the Turquoise@Sentosa, which sold for $3.9 million in July 2014, almost half the $7.1 million it was originally bought for in November 2007, according to data compiled by Maybank.
Of the top 10 loss-making sales in 2014, four were located in Sentosa and four in the Orchard Road area, which historically have attracted much higher foreign interest than other parts of the island.
“The concern around foreigners exiting en mass came about because resale values in foreign enclaves such as Orchard and Sentosa have dropped more than other areas,” Ng Wee Siang, head of research at Maybank told CNBC.