In Singapore, we see huge price difference in houses, cars, food, etc… Undiscerning investors or buyers are paying for features or things that they may not need but yet they paid.
Today, let us take a look at cooked food. At the lowest end, we have the humble mixed vegetable stall at coffeeshop selling at $3.20 - $3.50 for a meat and 2 vegetable plus rice. Chicken rice is sold at $3.50 too. In a hotel, similar chicken rice or mixed rice will cost $10 and above. Is it worth paying 3 times more for a similar dish with better taste, service and good ambience? Personally, I don’t think it is worth it. The coffeeshop mixed rice is not too bad after all. Many men will go if the hotel staff is a pretty woman. Well, I chose not to.
In laptops, computers, we see this situation as well. The lowest end laptop cost $500 at a sale. The highest end that is super thin cost $2,000 onwards. This is 4 times more in price for slight improvement in performance and weight.
Car prices fluctuate greatly due to the COE prices. 3 years ago, it may cost $60,000 for a brand new Toyota. The new BMW then may cost $200,000. Please note that the $200,000 BMW can only sit 5 adults comfortably. It is not as if it can sit 15 persons or can run 3 times faster. Which is worth it? Though, I love BMW cars, I think the Toyota is more value for money than BMW. Also the extra road tax, maintenance and petrol dollars make me cringe.
In housing market, this is evident too. A 1,000 square feet apartment in Sentosa cost $2 Million. A similar unit in Paya lebar cost only $1 Million. Is the scenary in Sentosa 2 times more beautiful or the air 2 times more fragrant? I doubt so. Investors or buyers are again paying millions this time for some features that they do not need or for their ego.
It is your choice.
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