Tag Archives: Singapore Property Prices

Deals done in Q1 post poorest returns since the start of last year

Property speculators have had a tougher time so far this year – some 341 subsales of condos and apartments in the first eight months of this year incurred a loss, about 4.5 times the total number of loss cases in the whole of 2008.

The numbers are equally dismal in percentage terms. From just 5.2 per cent of total subsales in 2008, the proportion of loss-incurring subsales rose to 23.3 per cent between January and August this year.

The higher number is largely due to the weak home prices in Q1 this year, which saw the highest proportion of subsale losses (32.5 per cent) since the start of last year.

Loss-incurring subsales in the first three months of the year also posted the biggest average loss per unit of $343,982 or 18 per cent.

On the other hand, profitable subsales in Q1 showed the smallest average gain per unit, according to Savills Singapore’s analysis of caveats from the URA Realis system as of Aug 28.

The fortunes of those who sold in the subsale market improved in the second quarter and in the July to August period, in tandem with the recovery in sentiment and home prices. Continue reading →

Centris has the most profitable subsales; Montebleu tops in loss-making deals

THE Centris in Jurong West has the highest number of profitable subsale transactions so far this year.

Savills Singapore found that 69 units in the development have changed hands in the subsale market since the start of the year at higher prices than previously for the same units.

One Amber in Katong has the second highest number of profitable subsales at 63, followed by 58 at The Metropolitan Condo in Alexandra Road, 55 at Casa Merah, 44 for The Quartz in the Buangkok area, and 41 for Carabelle at West Coast Way.

In all these projects, there were more profitable subsale deals than loss-making ones this year. In fact, Carabelle did not have any loss-making subsale transactions this year.

Savills’ analysis was based on URA Realis caveats information as at Aug 28 this year.

However, some projects saw more loss-making subsale deals than profitable ones during the study period. Examples include Montebleu in the Balestier area, which had 27 subsale losses against six subsale gains; The Coast at Sentosa Cove (12 losses versus 10 gainers); The Parc Condo at West Coast Walk (12 losses versus three gainers); and St Regis Residences (nine losses versus two gainers).

For Montebleu, most of those who divested in the subsale market this year had bought their units from the project’s developer in 2007. For the 27 owners who sold their units in the project at a loss this year, the average loss per unit was about $115,600 or 10.1 per cent. Continue reading →