The RitCarlton Residences, a S$16.5-million deal, is among the Q1’s biggest gainsers. The seller earns S$4.9-million in profit.
The seller gained S$4.9m, or 42 percent over the S$11.6m initial purchase price (3,795 S$ psf). Based on a period of holding of almost eight years, a seller made an annualised gain of 4.5 percent.
The data also showed the five highest-profiting transactions, quantitatively, in Q1 all occurred in Singapore’s Core Central Region. This is due to the fact that prices in the CCR are higher and the transacted units are larger.
The four properties that were sold freehold tend to fetch a higher price
The data for Q1 shows that the largest losers in both terms of quantum and percentage gain were also prime properties. The largest losses in the quarter ranged from SS$381,000 up to S$983,555. These units have been purchased during different phases of the market cycle.
Loss-making CCR deals topped the list in both of the past quarters. Losses in the fourth quarter of 2023 ranged from S$281,000 up to S$2.39M, and S$267,000 – S$700K in the third.
The most expensive deal in Q1, both in terms of quantity and percentage, involved a 936 square foot unit in the District 1 freehold condominium Robinson Suites. In January, the unit was sold at S$1.8 million (S$1,922/sq ft). This was a 35 per cent reduction from its original price, S$2.78mi (S$2,972psf), in May 2013. According to a 10 year holding period, the annualised loss is 4 per cent.
The Q1 results showed that executive condominiums (EC) were the most profitable transactions in terms of percentage gains. This trend was also evident in Q1 2020.
Core Central Region has five of the biggest money-making deals in Q1 based on quantum
The sale was the highest-profitable resale transaction in absolute terms for the first quarter in 2024. The seller received a tidy S$4.9million.
Cushman & Wakefield, a real estate consultancy that crunched the data for The Business Times, reported in January that the 33rd floor apartment at the freehold luxurious development in district 9 sold for S$16.5mil (S$5,397 psf). BT previously reported that it was the very first time since 2023 when prices on the prime residential property market exceeded S$5,000 psf.
Treasure Crest EC had the most profitable resale sales, with units selling for between S$716,000-S$921,000.
The five 99 years leasehold properties in Sengkang (District 19) were held in average for eight years and then sold for a handsome profit between 98 percent and 106 cents.
In January, a 1,249-square-foot Treasure Crest unit sold for S$1.79m (or S$1,434/sqft). This was 106 percent higher than the original price, which was S$869,000 in July 2016 (S$696 per square foot). After a period of 7.5-years, the annualised gain was 10.2 percent.
Four of the five highest-percentage gains were attributable to units in the Outside Central Region (OCR), which is a suburban area. The best deal in terms of percentage profit was a unit at the city’s fringe, or Rest of Central Region.
Eastwind Mansions was sold in March for slightly over S$2 million
The 1,346 square foot unit at Eastwind Mansions, located along Joo Chiat Terrace within District 15, was sold in March for slightly over S$2 million (1,487 S$ per sq.ft.). The seller realized S$900888, or 82 percent over its original S$1.1m price (S$818psf), in April 2017. This is equivalent to an annualised 9.1% profit based on the holding period 6.9 year.
Cushman & Wakefield studied caveats in its study for private non-landed homes transacted between Q1 2024 and January 2012 with a purchase history from March 2024. The analysis excluded taxes and transaction costs, including buyer and seller stamp duties.
In the first quarter, the caveat data from landed homes and non-landed properties showed that prime CCR property accounted 55 per cent for all losses in private home deals. RCR and OCR both accounted 36% of such deals.
Despite the fact that the CCR has a greater share of deals that are loss-making, 84% of CCR’s sales were profitable
The percentage of non-landed land deals and landed land that resulted in losses – 2.8% in Q1- has remained low, due to the property owners’ strong hold and the resilient local demand. This was supported by the low unemployment rate, and strong household finances.
Analysts believe that although buyer affordability continues to be a concern and buyer opposition is likely to increase due to high interest rate and housing prices still being elevated, the number of deals with a loss will remain relatively low.
