New Reporter
21-04-23, 10:06
Executive condos among top percentage gainers in Q1 resale deals
Biggest losers were properties bought during 2012-2013 market peak
Apr 20, 2023
SOME executive condominium (EC) homeowners in Singapore’s suburbs or outside central region (OCR) scored solid gains in the first quarter of this year, with properties changing hands for nearly double their original price.
Three of the top five profit-making resale deals by percentage were transactions in the OCR, where sellers pocketed profits of 82 to 86 per cent when they sold their properties in Q1 2023, according to data crunched for The Business Times by real estate consultancy Cushman & Wakefield.
Notably, two of the most profitable deals by percentage were EC units that were held for around seven years and then sold for an “attractively high profit”, said the consultancy’s head of research Wong Xian Yang.
An EC unit of 1,173 square feet (sq ft) at Sol Acres in Choa Chu Kang Grove was sold for S$1.65 million or S$1,406 per square foot (psf) in March. The sale represented a gain of 86 per cent over the unit’s purchase price of S$888,000 (S$757 psf) in February 2016. This works out to an annualised profit of 9.1 per cent, based on the holding period of around seven years.
In another deal, a 1,496 sq ft EC unit at Bellewaters in Sengkang sold for S$1.98 million (S$1,323 psf) in January, for an 83 per cent gain or annual profit of 8.5 per cent from the S$1.08 million (S$725 psf) the seller had paid in August 2015.
https://i.imgur.com/KupbYbH.png
The most profitable deal by percentage in Q1 2023 was for a 1,313 sq ft unit at the 99-year leasehold condominium The Sail @ Marina Bay in the prime core central region (CCR), which doubled in value when it changed hands at S$3 million (S$2,284 psf) in March.
The 47th-floor unit in the luxury District 1 condo was bought for S$1.5 million (S$1,142 psf), just seven months prior in August 2022. Based on a holding period of less than a year, the annualised profit works out to 222.6 per cent.
This transaction was likely an outlier, Wong noted, since the seller had originally bought the unit at S$1,142 psf, well below 2022’s median transacted psf price of S$1,862 psf for The Sail @ Marina Bay.
By quantum, all five of the biggest profit-making deals in Q1 were located in the CCR, by virtue of the relatively higher prices and transacted unit sizes in the region. Four were freehold properties.
The biggest gainer was a 3,746 sq ft, 12th floor unit at Leedon Residence in District 10, which sold for S$9.5 million (S$2,536 psf) in March. With the seller having purchased the freehold unit at S$6.7 million (S$1,789 psf) in January 2018, the windfall was S$2.8 million. Based on the holding period of around five years, this works out to a total profit of 42 per cent, or an annualised profit of 7.1 per cent.
The five biggest losers in terms of both percentage and quantum were properties bought during a peak in 2012 to 2013. Those condos were purchased just before the market cooled in late 2013, following the introduction of the total debt servicing ratio (TDSR) framework to prevent buyers from over-leveraging.
Of the top five loss-making deals, most were properties in the CCR, with a few located in the city fringe or rest of central region (RCR).
The deal that spilled the most red ink in terms of quantum and percentage was an 850 sq ft unit in the 103-year leasehold condo development The Scotts Tower in District 9. It was sold for S$1.77 million (S$2,081 psf) in February, losing 43 per cent or S$1.31 million in value from the S$3.08 million (S$3,622 psf) price paid for it in September 2012. Based on the holding period of 10.4 years, the seller suffered annualised losses of 5.2 per cent.
For its study, Cushman & Wakefield studied caveats for non-landed private homes with a prior purchase history between January 2012 and March 2023, and that were transacted in Q1 2023. It then ranked the top five profit-making and loss-making deals, both by percentage and quantum. The analysis excluded the transaction costs and taxes, such as buyer stamp duty and seller stamp duty.
https://www.businesstimes.com.sg/property/executive-condos-among-top-percentage-gainers-q1-resale-deals
Biggest losers were properties bought during 2012-2013 market peak
Apr 20, 2023
SOME executive condominium (EC) homeowners in Singapore’s suburbs or outside central region (OCR) scored solid gains in the first quarter of this year, with properties changing hands for nearly double their original price.
Three of the top five profit-making resale deals by percentage were transactions in the OCR, where sellers pocketed profits of 82 to 86 per cent when they sold their properties in Q1 2023, according to data crunched for The Business Times by real estate consultancy Cushman & Wakefield.
Notably, two of the most profitable deals by percentage were EC units that were held for around seven years and then sold for an “attractively high profit”, said the consultancy’s head of research Wong Xian Yang.
An EC unit of 1,173 square feet (sq ft) at Sol Acres in Choa Chu Kang Grove was sold for S$1.65 million or S$1,406 per square foot (psf) in March. The sale represented a gain of 86 per cent over the unit’s purchase price of S$888,000 (S$757 psf) in February 2016. This works out to an annualised profit of 9.1 per cent, based on the holding period of around seven years.
In another deal, a 1,496 sq ft EC unit at Bellewaters in Sengkang sold for S$1.98 million (S$1,323 psf) in January, for an 83 per cent gain or annual profit of 8.5 per cent from the S$1.08 million (S$725 psf) the seller had paid in August 2015.
https://i.imgur.com/KupbYbH.png
The most profitable deal by percentage in Q1 2023 was for a 1,313 sq ft unit at the 99-year leasehold condominium The Sail @ Marina Bay in the prime core central region (CCR), which doubled in value when it changed hands at S$3 million (S$2,284 psf) in March.
The 47th-floor unit in the luxury District 1 condo was bought for S$1.5 million (S$1,142 psf), just seven months prior in August 2022. Based on a holding period of less than a year, the annualised profit works out to 222.6 per cent.
This transaction was likely an outlier, Wong noted, since the seller had originally bought the unit at S$1,142 psf, well below 2022’s median transacted psf price of S$1,862 psf for The Sail @ Marina Bay.
By quantum, all five of the biggest profit-making deals in Q1 were located in the CCR, by virtue of the relatively higher prices and transacted unit sizes in the region. Four were freehold properties.
The biggest gainer was a 3,746 sq ft, 12th floor unit at Leedon Residence in District 10, which sold for S$9.5 million (S$2,536 psf) in March. With the seller having purchased the freehold unit at S$6.7 million (S$1,789 psf) in January 2018, the windfall was S$2.8 million. Based on the holding period of around five years, this works out to a total profit of 42 per cent, or an annualised profit of 7.1 per cent.
The five biggest losers in terms of both percentage and quantum were properties bought during a peak in 2012 to 2013. Those condos were purchased just before the market cooled in late 2013, following the introduction of the total debt servicing ratio (TDSR) framework to prevent buyers from over-leveraging.
Of the top five loss-making deals, most were properties in the CCR, with a few located in the city fringe or rest of central region (RCR).
The deal that spilled the most red ink in terms of quantum and percentage was an 850 sq ft unit in the 103-year leasehold condo development The Scotts Tower in District 9. It was sold for S$1.77 million (S$2,081 psf) in February, losing 43 per cent or S$1.31 million in value from the S$3.08 million (S$3,622 psf) price paid for it in September 2012. Based on the holding period of 10.4 years, the seller suffered annualised losses of 5.2 per cent.
For its study, Cushman & Wakefield studied caveats for non-landed private homes with a prior purchase history between January 2012 and March 2023, and that were transacted in Q1 2023. It then ranked the top five profit-making and loss-making deals, both by percentage and quantum. The analysis excluded the transaction costs and taxes, such as buyer stamp duty and seller stamp duty.
https://www.businesstimes.com.sg/property/executive-condos-among-top-percentage-gainers-q1-resale-deals