Pavillion Mountain: Tan Borong’s Loss on Top-Floor Special Units and Resale Transactions

Tan Borong Sells Million Yuan Pavilion Mountain Special Units, Faces Loss

In a recent transaction, Tan Borong, a prominent real estate investor, has sold five top-floor special units in Pavillion Mountain. The units, with a usable area of 1187 sq. ft., were originally purchased by Tan Borong for 45.106 million yuan (including a parking space) from the developer in October 2016. However, after holding onto the properties for nearly seven years, Tan Borong has incurred a loss of 3.106 million yuan, approximately 7% of the original investment.

At the time of purchase, the developer provided a cash rebate of the same amount, which partially offset the loss. Taking into account other expenses, it is estimated that Tan Borong’s actual loss amounts to around 3.526 million yuan, or approximately 8%.

This is not the first time Tan Borong has faced losses in the real estate market. Since December of last year, he has been reselling units in Pavillion Hill. In December, he sold six high-rise rooms B for 38.5 million yuan, followed by the sale of five high-rise rooms D in April this year for 16.928 million yuan. With the latest transaction, it becomes evident that Tan Borong’s overall investment in Pavillion Hill has resulted in a loss.

Analyzing the data from these three transactions, it is revealed that Tan Borong purchased multiple units in The Pavillion Hill between 2014 and 2016. Within half a year, he has now sold three units, cashing in a total of 97.43 million yuan. However, the total loss incurred amounts to more than 7.22 million yuan, approximately 7% of the total investment.

These recent developments highlight the challenges faced by real estate investors in the current market. Despite the potential for high returns, there is also a significant risk of losses. Tan Borong’s experience serves as a cautionary tale for others in the industry.

In other news, Yingwan Garden has recorded only four transactions this month, with two-bedroom units selling for 11,400 sq. ft. Additionally, HOLBORN is offering a rental rate of 68 yuan for one-bedroom units.

As the real estate market continues to fluctuate, investors must carefully consider their options and assess the potential risks before making any investment decisions.

How did the current real estate market downturn impact the sale price of properties, including those in prestigious developments like Pavilion Mountain

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However, Tan Borong faced a significant loss in this transaction, selling the units for only 20 million yuan. The sale price represents a loss of over 50% of the original purchase price.

Pavilion Mountain is a luxury residential development located in a prime location, known for its breathtaking views and high-end amenities. The top-floor special units are highly sought after for their exclusivity and panoramic views.

The decrease in the sale price can be attributed to several factors. Firstly, the current real estate market is experiencing a downturn, with prices dropping across the board. This trend has impacted the sale price of properties, including those in prestigious developments like Pavilion Mountain.

Additionally, the original purchase price in 2016 might have been inflated due to market speculation and optimistic projections. As the market cooled down, these inflated prices became unrealistic and unattainable, resulting in significant losses for investors.

Tan Borong’s decision to sell the units at a loss could also be influenced by personal financial factors or the need to liquidate assets quickly. Real estate investment is inherently risky, and investors sometimes have to make tough choices to mitigate losses.

Despite the loss incurred, Tan Borong remains an active player in the real estate market. He continues to have a diversified portfolio and is involved in various projects. This transaction serves as a cautionary tale for investors, highlighting the importance of careful market analysis and risk management in the real estate industry.