Reported in propertyguru.com.sg was a news about a boutique developer called C&C Development. A few of its uncompleted properties have been put under the hammer recently after the winding up of the company with its last business day on 22 July. (As per reported by The Straits Times). According to Grace Ng, Head of Auction and Sales at Colliers International, the developers who paid very high prices for land may find it hard to sell the properties at the targeted price. The current market slowdown is a major setback.
Chua Beng Chye, partner with the Restructuring and Insolvency Practice Group at Rajah & Tann, shared that today there are a growing number of property and construction firms facing financial headwinds. The two key reasons for this include escalating costs and slowdown in the property market. Anyway despite being put under auction, it is not always that these uncompleted properties could be sold. A recent auction of C&C’s partly built double-storey, semi-detached homes with attic and basement in Kingswear Avenue, Serangoon Gardens, by Colliers International with an opening price of S$2.8 million received no bids. Perhaps it’s also because the new buyer would have to complete the homes themselves.
If anyone has some news about some of these unfortunate timing by some boutique developers in Malaysia, do share yeah. Their decisions would provide to us lessons especially for some of us who’s more risk-averse. There’s nothing such as a never ending property price march. This brings us back to individual investors. There’s really no point in taking too much risks and over-stretching ourselves. No one can be lucky all the time because the peak may just be around the corner. Happy investing.
written on 29 July 2016
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