atans1

Sentosa Cove: His god deserts Kong Hee?

In Property on 15/07/2014 at 4:21 am

“We believe in you for better jobs, raises and bonuses, finding money, money finding us, incomes, royalties, real estates, dividends, inheritances…We pray to Jesus and there shall be a turnaround,” sums up the essence of the prosperity gospel*.

I was reminded of the above when it was reported yesterday that the trial of Kong Hee and friends was resuming.

Well his god seems to have left him to swing in the wind when it comes to property investing. Reminder: he owns a Senosa penthouse. A benefactor of Kong Hee’s church, an Indonesian tycoon, Wahju said in court a few months ago, that  he and Kong have been paying $17,000 a month each for a penthouse at Ocean Drive since 2008.  The tycoon had tot it would make a gd investment.
The penthose remains underwater, not literallo, of course. I was reminded of the penthouse by a BT report of a few weeks ago, that I juz read on Sunday.

ABOUT two in five Sentosa condominium units have resold at a loss in the past year, symptomatic of the plight of luxury homes here, as financing restrictions put off buyers, industry watchers say.

Since May last year, 31 units have changed hands at six Sentosa projects: Marina Collection, Seascape, The Azure, The Berth, The Coast and The Oceanfront, according to data compiled by STProperty.sg from URA Realis.

The profitability findings is in line with data gathered by HSR Research which shows resale prices at the plush Sentosa district falling 25 per cent to about $1,800 psf in the first five months of this year, compared to around $2,400 psf over the Jan-May 2013 period**.

Maybe his god thinks giving him Sun Ho and her filthy rich parents (they are paying his legal fees) is enough prosperity for one man? But he was too greedy and incurred the wrath of god? Hubris?

Or maybe he is a S’porean Job. The Lord’s praise of Job prompted Satan to challenge Job’s integrity, suggesting that Job served God simply because God protected him. God removed Job’s protection, allowing Satan to take his wealth, his children, and his physical health (but not his life) in order to test Job’s character. (Wikipedia)

And all will be well. God rewards Job’s obedience during his travails and restores his health and doubles his original riches.

Let’s see.

——————

*Another continent, another country (poorer). But the same rationale and motivation for donating generously

The service is for thanksgiving, which coincides with the first Sunday after payday. In what sounds like an economic report, the congregation is told to not worry about the first, second and third quarter of the year and that in the fourth quarter, there is still a chance to be blessed financially and materially. Congregants give testimonials describing long ambitions to land a job within government, to acquire a bigger house or a car and detailing how after fasting, praying, giving to the church, they are at last reaping the rewards. A leather-lined bin lands at Baobab’s feet. Give what you can, and you will be blessed …

… In Nigeria, where decades of governments have stolen hundreds of billions of dollars of oil money but most people live on less than $2 a day, many turn to religion, believing that only God can protect them and pull them out of poverty.

Note “poverty” is relative.

**Of the 31 transactions in the past year, profitability analysis could not be done for seven because caveats, which include information on purchase prices, were not lodged for the units. Profitability is calculated by subtracting purchase prices from selling prices. Of the remaining 24 transactions, 10 resold at a loss.

Among the loss-making transactions, four were units at The Berth, the debut project at the Cove which was launched in 2004 and completed in 2006. Three units made losses at The Oceanfront, two at the Coast, and one at the Azure.

Two in particular made seven-digit losses. A 2,982 sq ft unit at The Oceanfront sold for $5.65 million ($1,895 psf) in November last year, after it was purchased in April 2008 for $7.2 million ($2,415 psf) – a $1.55 million loss.

Another 2,820 sq ft unit at The Coast sold for $4.8 million ($1,702 psf) in January this year, two years after it was purchased at $6 million ($2,128 psf). This was a $1.2 million loss.

SLP International executive director … suggests that this could be due to owners struggling to find tenants for their units amid the weak leasing market. Some may also not be able to secure high enough rental rates to service their loans. (Most Sentosa homes are bought not for own occupation, but as investment.) “So they may find it a better option to just liquidate,” he said, adding that the location is also not the most convenient for expats to commute to the mainland for work.

Another industry watcher added that buyers who bought units at $2,100 psf and above appear to have “overpaid”. Those who profited from their resale deals mostly bought in at lower psf prices; a handful even got their units at $800, $900-plus psf back in 2006.

Meanwhile, several Sentosa Cove units are also up for sale at auction houses here. A 2,777-sq-ft unit at Turquoise condo, put up for sale by a lender at a Colliers’ auction this week, yielded no bids, despite having reduced its opening price to $4 million from its previous $5 million.

Two Sentosa homes are up for auction by DTZ, both by lenders, one at Turquoise and another at Marina Collection. Another four are for sale by private treaty (akin to private negotiations) by JLL – two at Turquoise and two at Marina Collection.

Typically, banks repossess homes and put them up for auction as part of a repayment structure when delinquent mortgagors (borrowers) are unable to find buyers and dispose of their properties themselves.

JLL’s head of auction … aid: “The owners of the two Turquoise units bought them at $7 million each, which is quite difficult to match in the current market.

“Auctioning is a good method to garner all interested parties in a room to competitively bid. Potentially, the owner can also expect to get the optimum price because it’s a competitive method of sale.”

Meanwhile, some Sentosa condos such as Cape Royale and The Residences at W have made strategic decisions to lease out their unlaunched units instead, given current soft condo prices on the Cove.

Roaring sales in the waterfront enclave back in 2006-2008 were hit by the financial crisis and had hardly recovered when the private housing market succumbed to successive rounds of cooling measures from 2009 … “For property prices anywhere, what goes up will also come down.”

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  1. […] TOC: Have you seen our professors? – Thoughts of a Cynical Investor: Sentosa Cove: His god deserts Kong Hee? – My Little Corner: Problem statement is simple. Why is policy complicated? – Yours […]

  2. What rubbish are you writing? Everyone, poor and rich, is affected one way or the other.

  3. Nothing good will come out of frauds especially those selling fake religions such as prosperity gospel which is unchristian and false. Kong us a big fraud not in falsifying Christianity but also fradulant in cheating church funds through deceptive schemes sham bonds, false invoices, xtron plus companies to swindle the donors of a false church. In the end Gov myst ask who else are involved among the con schemes introduced by heretics Benny Hinn, Phil Pringle, mentor Canon James Wong whose accountant friend in Church of Our Saviour Daw Ching also falsified accounts, who else overseas are involved in keeping other millions undeclared. This is just a tip of a multimillions scam.

  4. Those not aware of Kong Hee false teachings can view his teaching on scriptures taken out of context as he tries to promote prosperity gospel copied from heretics in USA. A psstor Paul Choo took his sermons and detected false interpretations from verses, misguided by his mentors Phil Pringle and worst the so-CALLED NCIU which moved from Australia or NZ to Usa and hardly a credited theological school. Next City Harvest grants un-qualified theological degrees to their own cult students. Blind leading the blind.

    In the end people should check Canon James Wong association with jailed fraud Cho Yonggi who also created scams to benefit financially. Sounds familiar. Yonggi son was also jailed for fraud.

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