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Some ‘flippers’ took big hit in sub-sale deals

Posted on 23 Sep 2009 | Comments Off

They were caught out earlier this year when prices fell as awarding of projects’ TOP neared

PROPERTY speculators have been in the firing line of late, but the hefty losses some suffered earlier this year suggest they might be deserving of some sympathy.

A number seem to have been caught out when prices fell as the awarding of a project’s temporary occupation permit (TOP) neared.

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Instead of flipping the property for a gain, some speculators were caught out and took a hit when they offloaded some of the popular sub-sale projects, according to Savills Singapore.

While the data showed that sub-sale deals typically rise in projects nearing completion, sellers may not always gain.

Take Casa Merah in Tanah Merah. There were 71 sub-sale deals done this year with 16 resulting in losses averaging $30,601. One seller suffered a loss of $142,790.

Most sellers made gains at Rivergate, which was completed in the first quarter of the year, but 10 suffered hefty losses. One ‘flipper’ took a massive hit of $985,000, with the average loser suffering red ink to the tune of $371,355.

At popular projects like The Sail @ Marina Bay, eight out of 19 sub-sale deals this year were done at an average loss of $949,343. Continue reading →

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Posted in Property Market / Real Estate

Tagged Singapore Property, Singapore Property Market, Subsale Market

Poorer year so far for subsale market

Posted on 22 Sep 2009 | Comments Off

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 →