Suburban homes outperform for the best resale gains during Q4

Four of the five most profitable transactions, in terms of percentage, were located in OCR. Gains were between 102 and 121%. Treasure Crest (a 99-year Leasehold Executive Condominium in District 19) sold four units that were held an average of seven years and then sold for a very high profit. EC resale prices have accounted for some of the largest percentage gains during the past three-quarters.

SUBURBAN and City fringe residential properties resold most profitably during the 4th quarter of 2023. This was in contrast to prime property deals which show typically large gains.
The unit, a 2,045sq ft apartment in a Wing Fong Building (a freehold building with residential apartments), topped the gains percentage table. The unit changed hands for S$1.9million or S$919psf by October 2023. That’s 121 percent more than S$850,000 which was the price the seller paid back in February 2012. This equates to an annualised gain of 7 percent, given that the property was held for 11.7 years.

Clementi Park Condominium Unit Sold in November Made the Most Money in Q4 Quantity. The seller had a profit worth nearly S$2,000,000 in just under six years.
The unit of 3,068 ft2 in the district 21 of Outside Central Region OCR was bought in October 2017 at a price S$2.8m, or S$913/sq ft. It was sold last November for S$4.8m, giving a 9.2 percent annual profit, according to the data.

The data revealed three of the five largest money-making sales, measured by their quantum, took place outside the city in Rest of Central Region. A fourth was transacted in OCR. The sellers made between 38 and 71% of their profits.
Analysts say that CCR resale transactions typically generate big gains as a result of higher prices and larger units.
But Q4’s sales data reflect the market outperformance in RCR and OCR. CCR prices on the other had only risen by 8 percent in the period.

In light of the CCR’s price premium, this outperformance may not last. Although it is anticipated that the RCR/OCR will maintain a moderate price growth, the CCR might be the laggard due to a shrinking price gap.
The two highest-valued transactions, excluding ECs were those for freeholds or 999year leaseholds. Both tend to be more expensive.

The caveats applicable to private non-landed properties with an existing purchase history of between January 2013 and December 2023. The analysis then ranked the five most profitable and least profitable deals by percentages and amounts. The analysis excludes all transaction costs and taxes including Buyer’s & Seller’s ‘Stamp Duty’.

According to the same trend that was seen last year the worst deals were in the prime CCR and purchased at different stages of the market cycles.
The most expensive deal in terms of quantity and percentage was for a 2,368 sf unit at Marina Bay Residences. This is located in district 1. The 99 year leasehold was acquired in March 2013 for S$9.3million (3,923 S$ psf), and sold in October 20,23 for S$6.9million (2,914 S$ psf). This results in a loss of 26% or S$2.4m. Based on the nearly decade-long holding period, the seller experienced an annualised 3 percent loss.

Ardor Residence Singapore
Data on caveats for private landed homes and non-landed homes in the 4th quarter showed that prime CCR property accounted 61 percent of loss-making sales. RCR properties accounted to 21 percent and OCR for 18 percent of losses-making deals in the fourth quarter. Still, most of the CCR’s deals (81%) were profitable.
The low levels in Q4 of 2023 for loss-making transactions were due primarily to a strong holding power within the market. Private residential prices also remained resilient despite higher interest rate. With the economic outlook improving in 2024 the overall level is expected to stay low.

Notably, in Q4 the proportion of transactions in the secondary marketplace that were loss-making for both the landed- and nonlanded-sector remained at a low level. Loss making deals dropped to 2.9 percent of all deals. This is down from 3.1 percent in the prior quarter and 4.5 percent in the same quarter last year. In Q4 20,21, losses accounted for 8.2 per cent of all transactions.

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