For the retail units, is MS collecting exorbitant price from owners?

I have made a simple calculation based on assumptions you have using the rate of return evaluation of free cash flow.
It turns out the investment will be at a loss of rate of return 1.23% per annum if the property price is to sell at 30% increase price only after 15 years. The reality is that if the loan interest is at 4+% a year, the increment of capital price should be more than bank interest of 4% and additional of another 3 to 3.5% of inflation to each year, which means increase of property price should be at 7-8% with a quick calculation. Should price increment is less than that, the investment will be at a loss and bank earns the investment returns from that property.
The IRR should be above the inflation rate or the fixed deposit rate or any bench mark % if this cash were to use in another investment which could fetch a certain %, e.g opportunity cost.

Something to share.




Attached thumbnail(s)

Still remember the front shops facing main road was selling 7m...ouch..