reporter2
22-04-22, 10:23
Non-landed private homes in the suburbs reap big percentage gains in resale market in Q1
The most profitable trades in percentage terms come from homes in Outside Central Region where prices are up 36% over the last decade
Apr 22, 2022
https://i.imgur.com/5oTPsgy.png
SOME buyers who snapped up non-landed private homes in the Outside Central Region (OCR) walked away with solid gains as they divested them in the first quarter of this year, in line with the 36 per cent jump in prices in the OCR over the last decade.
According to data crunched by real estate consultancy Cushman & Wakefield, the top 5 profit-making deals by percentage in the resale market in Q1 2022 were all located in the OCR, with one seller netting a handsome profit of nearly 80 per cent in just under six years.
Cushman & Wakefield studied caveats for non-landed private homes with a prior purchase history and which were transacted in Q1 2022, and then ranked them as the top 5 profit- and loss-making deals, both by percentage and by quantum. The analysis is based on caveats lodged over 10 years from 2012 to March 2022.
The top profit-making deal by percentage was a 1,292 square foot (sq ft), second-floor unit at freehold Silahis Apartments in Telok Kurau in District 15, which transacted for S$1.715 million (S$1,328 psf) in March. The seller purchased the unit for S$960,000 (S$743 psf) in May 2016, which worked out to a total profit of 79 per cent or an annualised profit of 10.4 per cent, based on the holding period of nearly 6 years.
All five of the biggest profit-making deals by percentage were located in the OCR, where "non-landed prices grew by 36.4 per cent over the last 10 years," pointed out Cushman & Wakefield's head of research (Singapore), Wong Xian Yang. "Comparatively, Rest of Central Region (RCR) non-landed prices grew by 18.8 per cent. On the other hand, Core Central Region (CCR) non-landed prices went down by 0.9 per cent."
The leading profit-making deal by quantum in Q1 was a 3,520 sq ft, second floor unit at freehold development Juniper At Ardmore in District 10, which sold for S$10.25 million (S$2,912 psf) in January. The seller purchased it in April 2017 for S$7 million (S$1,989 psf), netting a sizeable windfall of S$3.25 million. The holding period was nearly 5 years, which works out to an annualised profit of 8.3 per cent.
Meanwhile, the top loss-making deals in terms of both percentage and quantum were largely projects in the CCR.
Wong said: "These units were purchased at, or close to, the peak of the market before the market cooled off in H2 2013, following the introduction of Total Debt Servicing Ratio (TDSR) in June 2013."
Price growth in the CCR has also been crimped by the additional cooling measures rolled out over the years, such as hikes in the Additional Buyer's Stamp Duty (ABSD).
"Given CCR's higher prices and higher proportion of foreign buyers and investors, the overall CCR remains relatively disadvantaged as compared to the RCR and OCR, which are supported by local and owner-occupier demand," Wong added. "On the other hand, CCR would see the most upside should cooling measures be peeled back."
The biggest loss-making transaction by percentage in Q1 2022 was a 10th floor, 1,281 sq ft unit at freehold project Helios Residences in Cairnhill Circle in District 9, which sold for S$2.8 million (S$2,186 psf) in January, or 42 per cent lower than the S$4.85 million (S$3,792 psf) price tag when it was bought in July 2013. Based on the holding period of 8.5 years, the annualised loss was 6.3 per cent.
By quantum, the top loss-making deal was for a unit at Belle Vue Residences, which transacted for S$4.7 million (S$1,324 psf) in March, nearly S$2.7 million less than the S$7.4 million (S$2,083 psf) the seller paid for it in September 2012. The 3,552 sq ft unit on the 5th floor was held for 9.5 years, during which the seller chalked up annualised losses of 4.7 per cent.
Located at Oxley Walk, Belle Vue Residences is a freehold property in District 9.
Cushman & Wakefield also studied the proportion of loss-making transactions in the secondary market, which retreated to 8 per cent in Q1 2022 from 9.1 per cent in Q4 2021 despite December's cooling measures as economic growth and an improving labour market continued to give sellers holding power.
"While rising interest rates would increase financing costs and erode holding power, the market should remain stable as leverage risk seems manageable, with loan curbs in place and (a tight) labour market," Wong added.
https://i.imgur.com/lw5HbjN.png
https://www.businesstimes.com.sg/real-estate/non-landed-private-homes-in-the-suburbs-reap-big-percentage-gains-in-resale-market-in-q1
The most profitable trades in percentage terms come from homes in Outside Central Region where prices are up 36% over the last decade
Apr 22, 2022
https://i.imgur.com/5oTPsgy.png
SOME buyers who snapped up non-landed private homes in the Outside Central Region (OCR) walked away with solid gains as they divested them in the first quarter of this year, in line with the 36 per cent jump in prices in the OCR over the last decade.
According to data crunched by real estate consultancy Cushman & Wakefield, the top 5 profit-making deals by percentage in the resale market in Q1 2022 were all located in the OCR, with one seller netting a handsome profit of nearly 80 per cent in just under six years.
Cushman & Wakefield studied caveats for non-landed private homes with a prior purchase history and which were transacted in Q1 2022, and then ranked them as the top 5 profit- and loss-making deals, both by percentage and by quantum. The analysis is based on caveats lodged over 10 years from 2012 to March 2022.
The top profit-making deal by percentage was a 1,292 square foot (sq ft), second-floor unit at freehold Silahis Apartments in Telok Kurau in District 15, which transacted for S$1.715 million (S$1,328 psf) in March. The seller purchased the unit for S$960,000 (S$743 psf) in May 2016, which worked out to a total profit of 79 per cent or an annualised profit of 10.4 per cent, based on the holding period of nearly 6 years.
All five of the biggest profit-making deals by percentage were located in the OCR, where "non-landed prices grew by 36.4 per cent over the last 10 years," pointed out Cushman & Wakefield's head of research (Singapore), Wong Xian Yang. "Comparatively, Rest of Central Region (RCR) non-landed prices grew by 18.8 per cent. On the other hand, Core Central Region (CCR) non-landed prices went down by 0.9 per cent."
The leading profit-making deal by quantum in Q1 was a 3,520 sq ft, second floor unit at freehold development Juniper At Ardmore in District 10, which sold for S$10.25 million (S$2,912 psf) in January. The seller purchased it in April 2017 for S$7 million (S$1,989 psf), netting a sizeable windfall of S$3.25 million. The holding period was nearly 5 years, which works out to an annualised profit of 8.3 per cent.
Meanwhile, the top loss-making deals in terms of both percentage and quantum were largely projects in the CCR.
Wong said: "These units were purchased at, or close to, the peak of the market before the market cooled off in H2 2013, following the introduction of Total Debt Servicing Ratio (TDSR) in June 2013."
Price growth in the CCR has also been crimped by the additional cooling measures rolled out over the years, such as hikes in the Additional Buyer's Stamp Duty (ABSD).
"Given CCR's higher prices and higher proportion of foreign buyers and investors, the overall CCR remains relatively disadvantaged as compared to the RCR and OCR, which are supported by local and owner-occupier demand," Wong added. "On the other hand, CCR would see the most upside should cooling measures be peeled back."
The biggest loss-making transaction by percentage in Q1 2022 was a 10th floor, 1,281 sq ft unit at freehold project Helios Residences in Cairnhill Circle in District 9, which sold for S$2.8 million (S$2,186 psf) in January, or 42 per cent lower than the S$4.85 million (S$3,792 psf) price tag when it was bought in July 2013. Based on the holding period of 8.5 years, the annualised loss was 6.3 per cent.
By quantum, the top loss-making deal was for a unit at Belle Vue Residences, which transacted for S$4.7 million (S$1,324 psf) in March, nearly S$2.7 million less than the S$7.4 million (S$2,083 psf) the seller paid for it in September 2012. The 3,552 sq ft unit on the 5th floor was held for 9.5 years, during which the seller chalked up annualised losses of 4.7 per cent.
Located at Oxley Walk, Belle Vue Residences is a freehold property in District 9.
Cushman & Wakefield also studied the proportion of loss-making transactions in the secondary market, which retreated to 8 per cent in Q1 2022 from 9.1 per cent in Q4 2021 despite December's cooling measures as economic growth and an improving labour market continued to give sellers holding power.
"While rising interest rates would increase financing costs and erode holding power, the market should remain stable as leverage risk seems manageable, with loan curbs in place and (a tight) labour market," Wong added.
https://i.imgur.com/lw5HbjN.png
https://www.businesstimes.com.sg/real-estate/non-landed-private-homes-in-the-suburbs-reap-big-percentage-gains-in-resale-market-in-q1