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May 07

Parc Life

Last month Katsumi Tada, a Japanese millionaire, experienced the largest sale loss of an apartment in Singapore. The loss was of $15.8 million for the sale of St. Regis penthouse which was originally purchased in May of 2007 for $28 million and sold last month for $12.2 million.

For a high end residence in that area, even those watching the market could see that the per square foot price was a bargain for Parc Life EC. Tada’s previously owned unit was picked up for a mere $2,028 per square foot in comparison to nearby luxury apartments with a price range of $2,500 to $3,000 per square foot.

Parc Life EC in Sembawang

According to experts however, if one were to take into account the fluctuation in exchange rates of Singapore’s dollar compared to the Japanese yen, the shortfall equates to a much smaller figure of $12.9 million in Sembawang Parc Life EC.

Going by data from Bloomberg and Fraser Centrepoint, a Singapore dollar was equal to 78 yen when Tada purchased the penthouse in 2007. With this in mind, he purchased the penthouse property for $28 million (or 2.184 billion yen) at that time.

In comparison, when the penthouse was bought by Andy Chua, owner of Yun Nam Hair Cair, Singapore’s dollar amount was equal to 87 yen. This would mean that the property changed hands for 1.061 billion yen. Going by that logic, Tada only lost $12.9 million (or 1.123 billion yen).

Parc Life Fraser Centrepoint

Fraser Centrepoint Parc Life

Saktiandi Supaat, the head of foreign exchange research for Maybank Singapore Parc Life EC, explained that it is possible that the financial losses experienced by Tada was cushioned by a weakening yen against the Singapore dollar.

He further pointed out that it made sense to invest in a property market whose currency value is expected to prosper in line to the home country of the investor.

Managing director of Singapore Christie Homes, Samuel Eyo, has stated that these types of investments are quite common among individuals of high net worth there for Parc Life EC.

Parc Life EC

He further adds not to mistake that these people are losing so much. A significant difference can be seen between very wealthy investors who carefully plans for everything they want and HDB owners who have a limited supply of cash in Parc Life EC.

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