Will you wish there was a housing crash in Singapore if you can get a 3-bedroom luxury apartment at The Sail over looking Marina Bay Sands for just $3,000 a month? The equivalent was what happened in Miami.
Brandon Klein, a 26-year-old tax accountant, stays at 50 Biscayne Boulevard, one of the luxury holiday condos built during the 2004 to 2008 boom to attract second-home buyers. Housing market has plummeted in end 2008, and with 7,000 unsold condos, almost a third of the 22,079 units in 75 buildings in Miami’s core, it has transformed Miami. With US$2,700 shared among 3 friends, Brandon is living in an apartment with 24 hour concierge, a ‘sick’ view of Downtown and a life he can never imagined. Some areas, previously only middle aged wealthy appear have transformed into dorm like residences. Interestingly, this has infused life into the vacation beach environment.
If Singapore had a 10% unemployment, 2010 GDP growth forecast 2.8 percent and household consumption increasing by just 1.8 percent, we can probably have S$2,700 rental for a 3-bedroom apartment at The Sail. Will you want that? While Singapore private home prices have tapered off in June, I do not think we wil ever have $2,700 The Sail to stay.
Full article from Bloomberg here
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