The Ritz-Carlton Residences deal worth S$16.5m is Q1 gainer
The sale was the highest-profitable resale transaction in absolute terms for the first quarter in 2024. The seller received a tidy S$4.9m profit.
Cushman & Wakefield has crunched some data to determine that the 33rd Floor unit at the freehold Luxury Development in District 9 in Singapore was sold last January for S$16.5 Million or S$5,397 psf. BT had reported earlier that this was the first time in June 2023 when prices for prime residential properties exceeded S$5,000 per square foot.
The seller earned a profit in the amount of S$4.9mn or 42 percent over his initial purchase of S$11.6mn (S$3,795psf).
A seller with a holding period close to eight years has made an annualised return of 4.5 %.
The data also showed five of the biggest transactions in terms of quantum were in Singapore’s Core Central Region. This was due to higher prices and transaction sizes in that area.
The five properties included four freeholds which, according to him, tend to be more expensive.
Q1 figures showed that the top losers, in both terms of quantum and percentage gain, were mostly prime properties. The largest losses in the quarter ranged from SS$381,000 up to S$983,555. The units were purchased in different market cycles.
In the two previous quarters, CCR deals also led in terms of losses. Losses ranged in the Q4 2023 from S$281,000-S$2.39m, and in the Q3 from S$267,000-700,000
A 936 sq. ft. unit in the District 1 freehold condo Robinson Suites was the transaction that created most red ink for Q1, both in terms of percentage and quantum. The deal was done for S$1.8m (S$1,922psf) in January. This was 35% less than the original S$2.78m ($2,972psf), which was paid in May 2013. If you assume a period of 10,7 years of ownership, that translates to an annualised rate of loss of 4 percent.
In terms if percentage gains, the executive condominium (EC), transactions were most profitable in Q1. This is a continuation of a trend seen in Q1 2019.
Treasure Crest EC ranked among the top five most lucrative resale deals, with sellers doubling their money and making between S$716,000 – S$921,000.
The five 99year leasehold flats in Sengkang were held for averaging eight years and then sold for a handsome profit of between 98 per cent and 106 per cent.
A 1,249 sq.ft. Treasure Crest condo unit in Singapore was the top seller, selling for S$1.79mil or S$1,434/sq.ft. The price tag was 106% higher than its original S$869,000 (S$696psf) July 2016 value. In July 2016, the unit’s original price was S$869,000 (S$696 psf).
Four of the five highest-percentage gains were attributable to units in the Outside Central Region. The deal with the highest profit percentage was a unit at the city’s fringe, otherwise known as Rest of Central Region.
In March, the 1,346-square-foot unit at Eastwind Mansions on Joo Chiat Terrace near District 15 sold for slightly over S$2,000,000 (S$1,487/sq ft). The seller made S$900.888 in profit, which is 82 percent over its initial price of S$1.1m in April 2017. (S$818psf), translating into an annualised 9.1 per cent profit based a holding time of 6.9years.
Cushman & Wakefield analyzed caveats of non-landed residential homes with a history of prior purchases between January and March 20,24. The analysis excluded all transaction costs and taxes including stamp duty for the buyer and seller.
According to data from caveats of private homes on land and off-land, prime CCR homes accounted in total for 55 percent of losses-making deals during the first four months of 2018. RCR represented 36% and OCR, 9% of such deals.
CCR, however, saw a greater percentage of deals that resulted in losses. However, 84 percent of CCR transactions were profitable.
Due to local demand, and strong property ownership by owners, the percentage of loss-making transactions in the landed sector and non-landed sector has remained at 2.8%. These were supported in part by low unemployment and strong household financials.
Even though buyer affordability continues to be a concern and buyer resistance may grow as a result of still high interest rates, and the rising price of housing, it’s predicted that overall losses will remain low.
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