New Reporter
24-10-23, 11:07
Executive condo sellers remain among top profit gainers in Q3
Prime properties comprise the majority of loss-making deals and continue to be the biggest losers
Oct 24, 2023
SOME executive condominium (EC) homeowners in the suburbs or Outside Central Region (OCR) continued to score solid gains in the third quarter of 2023, with properties changing hands for nearly double their original prices.
Meanwhile, some prime properties chalked up the biggest losses – losing between S$267,648 and S$700,000 in value – and accounted for the majority of loss-making deals.
This came as the proportion of loss-making resale transactions of private homes in both landed and non-landed sectors inched up marginally to 3.2 per cent in Q3, from 2.8 per cent in the previous quarter.
This figure may continue to creep up in the coming quarters as a more cautious mood settles in Singapore’s property market, said Wong Xian Yang, Cushman & Wakefield’s head of research.
Based on data crunched for The Business Times by real estate consultancy Cushman & Wakefield, four of the top five profit-making resale deals by percentage in Q3 were EC transactions in the OCR.
Sellers pocketed “attractively high profit” of 90 per cent to 98 per cent, after holding their units for an average of around nine years, noted Wong.
A 2,121 square foot (sq ft) EC unit at The Tampines Trilliant transacted for S$2.4 million or S$1,141 per square foot (psf) in July. The seller walked away with a tidy profit of 98 per cent over the unit’s original price of S$1.2 million (S$578 psf) in December 2012. Based on the holding period of 10.6 years, annualised profit was 6.6 per cent.
In another EC deal, a 495 sq ft unit at Sol Acres in Choa Chu Kang was sold for S$720,000 or S$1,454 psf in July. This was 94 per cent higher than its initial price of S$371,000 (S$749 psf) in August 2017. Annualised profits were 11.9 per cent, based on a holding period of 5.9 years.
The biggest profit-making deal – by both percentage and quantum – in Q3 was a 10,710 sq ft penthouse unit at Goodwood Residence in Bukit Timah in District 10. It was sold for S$32 million or S$2,988 psf in September. The seller made slightly more than double in profit over the unit’s original price of S$15.6 million (S$1,457 psf) in June 2014. This works out to an annualised profit of 8 per cent over a holding period of 9.3 years.
Such supersized penthouses of more than 10,000 sq ft are a rare commodity, noted Wong. “Transaction levels are also extremely thin, with less than 10 supersized penthouse transactions since 2018.”
https://i.imgur.com/IofqXld.png
In terms of absolute gains, all five of the biggest money-making deals in Q3 were freehold units located in the prime Core Central Region (CCR), by virtue of their relatively higher prices and larger unit sizes, said Wong.
Units in the CCR also accounted for the top loss-making deals, by both quantum and percentage, bought during “varying periods of the market cycle”, he said.
The sale that spilled the most red ink in terms of percentage was a 474 sq ft unit at freehold condo 6 Derbyshire in Novena in District 11. It was sold for S$920,000 or S$1,943 psf in August – 23 per cent lower than its initial price of S$1.2 million (S$2,508 psf) in November 2017. The seller suffered annualised losses of 4.3 per cent, based on a holding period of 5.8 years.
By quantum, the top loss-making deal was for a 1,389 sq ft unit at 99-year leasehold Mon Jervois in District 10. It was transacted for S$2.6 million or S$1,872 psf in August. This was 21 per cent lower than its original price of S$3.3 million (S$2,377 psf) in November 2017. Based on a holding period of 5.8 years, this translated to annualised losses of 4 per cent.
For its study, Cushman & Wakefield examined caveats for non-landed private homes with a prior purchase history between January 2012 and September 2023, and that were transacted in Q3 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.
Caveats data of landed and non-landed private homes also showed that prime CCR properties accounted for 52 per cent of loss-making deals in the third quarter. The Rest of Central Region (RCR) accounted for 26 per cent of such deals, and the OCR 22 per cent.
“Following the latest round of cooling measures, demand for CCR properties remains tempered as buyers adopt a watch-and-wait stance,” Wong said.
“Nonetheless, while the CCR garnered a larger share of loss-making transactions, the majority at 81 per cent of CCR-matched transactions are profitable.”
While the number of loss-making deals of private homes could rise, Wong predicts that overall levels of loss-making transactions are likely to remain low.
“Domestic private residential demand, while cautious, remains resilient and owners’ holding power is supported by a stable labour market and healthy household balance sheets,” he said. “Housing and Development Board resale prices continue to edge higher, supporting upgrader demand, particularly for the RCR and OCR markets.”
https://www.businesstimes.com.sg/property/executive-condo-sellers-remain-among-top-profit-gainers-q3
Prime properties comprise the majority of loss-making deals and continue to be the biggest losers
Oct 24, 2023
SOME executive condominium (EC) homeowners in the suburbs or Outside Central Region (OCR) continued to score solid gains in the third quarter of 2023, with properties changing hands for nearly double their original prices.
Meanwhile, some prime properties chalked up the biggest losses – losing between S$267,648 and S$700,000 in value – and accounted for the majority of loss-making deals.
This came as the proportion of loss-making resale transactions of private homes in both landed and non-landed sectors inched up marginally to 3.2 per cent in Q3, from 2.8 per cent in the previous quarter.
This figure may continue to creep up in the coming quarters as a more cautious mood settles in Singapore’s property market, said Wong Xian Yang, Cushman & Wakefield’s head of research.
Based on data crunched for The Business Times by real estate consultancy Cushman & Wakefield, four of the top five profit-making resale deals by percentage in Q3 were EC transactions in the OCR.
Sellers pocketed “attractively high profit” of 90 per cent to 98 per cent, after holding their units for an average of around nine years, noted Wong.
A 2,121 square foot (sq ft) EC unit at The Tampines Trilliant transacted for S$2.4 million or S$1,141 per square foot (psf) in July. The seller walked away with a tidy profit of 98 per cent over the unit’s original price of S$1.2 million (S$578 psf) in December 2012. Based on the holding period of 10.6 years, annualised profit was 6.6 per cent.
In another EC deal, a 495 sq ft unit at Sol Acres in Choa Chu Kang was sold for S$720,000 or S$1,454 psf in July. This was 94 per cent higher than its initial price of S$371,000 (S$749 psf) in August 2017. Annualised profits were 11.9 per cent, based on a holding period of 5.9 years.
The biggest profit-making deal – by both percentage and quantum – in Q3 was a 10,710 sq ft penthouse unit at Goodwood Residence in Bukit Timah in District 10. It was sold for S$32 million or S$2,988 psf in September. The seller made slightly more than double in profit over the unit’s original price of S$15.6 million (S$1,457 psf) in June 2014. This works out to an annualised profit of 8 per cent over a holding period of 9.3 years.
Such supersized penthouses of more than 10,000 sq ft are a rare commodity, noted Wong. “Transaction levels are also extremely thin, with less than 10 supersized penthouse transactions since 2018.”
https://i.imgur.com/IofqXld.png
In terms of absolute gains, all five of the biggest money-making deals in Q3 were freehold units located in the prime Core Central Region (CCR), by virtue of their relatively higher prices and larger unit sizes, said Wong.
Units in the CCR also accounted for the top loss-making deals, by both quantum and percentage, bought during “varying periods of the market cycle”, he said.
The sale that spilled the most red ink in terms of percentage was a 474 sq ft unit at freehold condo 6 Derbyshire in Novena in District 11. It was sold for S$920,000 or S$1,943 psf in August – 23 per cent lower than its initial price of S$1.2 million (S$2,508 psf) in November 2017. The seller suffered annualised losses of 4.3 per cent, based on a holding period of 5.8 years.
By quantum, the top loss-making deal was for a 1,389 sq ft unit at 99-year leasehold Mon Jervois in District 10. It was transacted for S$2.6 million or S$1,872 psf in August. This was 21 per cent lower than its original price of S$3.3 million (S$2,377 psf) in November 2017. Based on a holding period of 5.8 years, this translated to annualised losses of 4 per cent.
For its study, Cushman & Wakefield examined caveats for non-landed private homes with a prior purchase history between January 2012 and September 2023, and that were transacted in Q3 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.
Caveats data of landed and non-landed private homes also showed that prime CCR properties accounted for 52 per cent of loss-making deals in the third quarter. The Rest of Central Region (RCR) accounted for 26 per cent of such deals, and the OCR 22 per cent.
“Following the latest round of cooling measures, demand for CCR properties remains tempered as buyers adopt a watch-and-wait stance,” Wong said.
“Nonetheless, while the CCR garnered a larger share of loss-making transactions, the majority at 81 per cent of CCR-matched transactions are profitable.”
While the number of loss-making deals of private homes could rise, Wong predicts that overall levels of loss-making transactions are likely to remain low.
“Domestic private residential demand, while cautious, remains resilient and owners’ holding power is supported by a stable labour market and healthy household balance sheets,” he said. “Housing and Development Board resale prices continue to edge higher, supporting upgrader demand, particularly for the RCR and OCR markets.”
https://www.businesstimes.com.sg/property/executive-condo-sellers-remain-among-top-profit-gainers-q3