New Reporter
14-04-23, 09:37
39 condo units sold at a loss in February 2023, the biggest at S$2.68m
April 11, 2023
Home prices are at their peak in the last two years, with private residential property prices increasing by 3.2% in the first quarter of 2023.
This signifies a good time for owners to sell their properties, as they’re more likely to get higher capital gains.
Unfortunately, not every owner can realise a capital gain even when they sell their properties during a property boom.
Among the private residential property transactions recorded by URA (captured as of 11 April 2023), 99.co found 39 condo transactions that were loss-making in February 2023. At the same time, condo resale prices have increased by 1.4% in the same month, as noted in the 99-SRX Flash Report.
https://i.imgur.com/6TnwZ0t.png
https://i.imgur.com/xVXXwwH.png
92.3% of the loss-making units were bought during a property boom
A common trend we observed was that most of the units (36) were bought when prices were sky-high. This is one likely reason why the owners still suffered capital losses despite selling the properties during a peak.
https://i.imgur.com/nInzAAH.png
When we filtered them down by their holding periods, 30 of them (76.9%) were held for at least 10 years. All were bought during a robust property market, except a unit from Marina Collection and two units from Marina Bay Suites, which were bought when prices were down in 2008 to 2009.
76.9% of the loss-making transactions came from the CCR
Interestingly, among these 39 loss-making units, a majority of them (30 units or 76.9%) came from the Core Central Region (CCR).
The Rest of Central Region (RCR) recorded seven condo losses, while only two units from Outside Central Region (OCR) were sold at a loss.
As mentioned in the 99-SRX Flash Report for February 2023, prices of resale condos in the CCR have dropped in the month, albeit marginally by 0.3%. This may explain the relatively high number of condo losses coming from the CCR.
Meanwhile, when compared by market segments, those in the OCR have seen the highest price growth at 2.3%. This is followed by resale condos in the RCR, which clocked a price increase of 1.4%.
According to Wong Siew Ying, Head of Research and Content at PropNex Realty, one possible explanation is that prices at new launches, such as Terra Hill in the RCR and Sceneca Residence in the OCR, may have influenced resale prices in these market segments.
64.1% of the loss-making units were from upper floors
Another trend we noticed was that more than half (25 out of 39) of the loss-making units had come from the upper floors, from the 10th storey to the 40th storey.
Considering that upper-floor units tend to be in higher demand and command higher prices, it’s interesting that a handful of them were sold at a loss.
A likely explanation is that owners from the upper-floor units may have held their units longer, hoping for the right time to sell their properties when the price is right. In fact, among these 25 upper-floor units, 18 were held for at least 10 years.
On the other hand, some owners of lower-floor units may have sold their units earlier to cut their losses.
More at: https://www.99.co/singapore/insider/condo-units-sold-loss-feb-2023/
April 11, 2023
Home prices are at their peak in the last two years, with private residential property prices increasing by 3.2% in the first quarter of 2023.
This signifies a good time for owners to sell their properties, as they’re more likely to get higher capital gains.
Unfortunately, not every owner can realise a capital gain even when they sell their properties during a property boom.
Among the private residential property transactions recorded by URA (captured as of 11 April 2023), 99.co found 39 condo transactions that were loss-making in February 2023. At the same time, condo resale prices have increased by 1.4% in the same month, as noted in the 99-SRX Flash Report.
https://i.imgur.com/6TnwZ0t.png
https://i.imgur.com/xVXXwwH.png
92.3% of the loss-making units were bought during a property boom
A common trend we observed was that most of the units (36) were bought when prices were sky-high. This is one likely reason why the owners still suffered capital losses despite selling the properties during a peak.
https://i.imgur.com/nInzAAH.png
When we filtered them down by their holding periods, 30 of them (76.9%) were held for at least 10 years. All were bought during a robust property market, except a unit from Marina Collection and two units from Marina Bay Suites, which were bought when prices were down in 2008 to 2009.
76.9% of the loss-making transactions came from the CCR
Interestingly, among these 39 loss-making units, a majority of them (30 units or 76.9%) came from the Core Central Region (CCR).
The Rest of Central Region (RCR) recorded seven condo losses, while only two units from Outside Central Region (OCR) were sold at a loss.
As mentioned in the 99-SRX Flash Report for February 2023, prices of resale condos in the CCR have dropped in the month, albeit marginally by 0.3%. This may explain the relatively high number of condo losses coming from the CCR.
Meanwhile, when compared by market segments, those in the OCR have seen the highest price growth at 2.3%. This is followed by resale condos in the RCR, which clocked a price increase of 1.4%.
According to Wong Siew Ying, Head of Research and Content at PropNex Realty, one possible explanation is that prices at new launches, such as Terra Hill in the RCR and Sceneca Residence in the OCR, may have influenced resale prices in these market segments.
64.1% of the loss-making units were from upper floors
Another trend we noticed was that more than half (25 out of 39) of the loss-making units had come from the upper floors, from the 10th storey to the 40th storey.
Considering that upper-floor units tend to be in higher demand and command higher prices, it’s interesting that a handful of them were sold at a loss.
A likely explanation is that owners from the upper-floor units may have held their units longer, hoping for the right time to sell their properties when the price is right. In fact, among these 25 upper-floor units, 18 were held for at least 10 years.
On the other hand, some owners of lower-floor units may have sold their units earlier to cut their losses.
More at: https://www.99.co/singapore/insider/condo-units-sold-loss-feb-2023/