The Ritz-Carlton Residences at The Ritz-Carlton tops the Q1 gainers with a S$16.5-million-deal; seller reaps S$4.9-million-profit
Of the five properties, four were freeholds. These properties tend to command higher prices.
The biggest losers of Q1 – both in terms percentage gain and value – were mainly prime property. The largest deals that lost money on resale were worth between SS$381,000 & S$983,555. The units were purchased in different market cycles.
The two most recent quarters also saw CCR transactions top the list of loss-making business. Losses ranged in size from S$281,000 – S$2.39 millions in Q4 of 2023 and S$267,000-S$700,000 Q3.
A 936 sq. ft. unit in the Robinson Suites freehold condo in District 1, which was a deal that had the largest amount of negative cash flow in Q1, was the one with most negative cash flow in both terms of percentage and quantum. The deal was done for S$1.8m (S$1,922psf) in January. This price was 35 percent lower than its initial price of S$2.78 (S$2,972 per sq ft) in May 2013, which was S$2.78. If you assume a period of 10,7 years of ownership, that translates into an annualised rate of loss of 4%.
Core Central Region is the home of five of Q1’s biggest money-making transactions
The sale, in absolute value, of a 3,057-square-foot (3,057 sq ft) apartment at The Ritz-Carlton Residences Singapore Cairnhill was by far the most profitable resale of all in the first three months of 2024. The seller earned a tidy S$4.9-million.
Cushman & Wakefield compiled data for The Business Times that showed the 33rd Floor unit at the luxury freehold project in District 9 sold in January. The price was S$16.5M or S$5,397 psf. BT reported earlier that it was for the first ever since June 20,23, the prime housing market prices had surpassed the S$5,000 psf level.
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).
Based on the holding period of eight years or more, the seller achieved an annualised return of 4.5 percent.
Data showed that the five most profitable transactions in Q1 in Singapore were all in the Core Central Region. This is because the prices are generally higher and the unit sizes of transactions in the region are bigger.
In terms if percentage gains, the executive condominium (EC), transactions were most profitable in the Q1, continuing a recent trend
Treasure Crest EC ranked among the top five most lucrative resale deals, where buyers doubled their money and made between S$716,000 – S$921,000.
The five 99year leasehold flats in Sengkang were held on average around eight to nine years before being sold at an attractively high return of 98-106 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. This was 106 % more than the original S$869,000 price (S$696/sq ft) of the unit in July 2016. In July 2016, the unit’s original price was S$869,000 (S$696 psf).
Four of the five best-performing deals, excluding ECs and units outside the Central Region, were in the suburban Outside Central Region. The deal with the highest profit percentage was for an apartment in the rest of central region (RCR), or city fringe.
In March, a 1,346 sf unit at the Eastwind Mansions condo along Joo Chiat Terrace near District 15 in Singapore was sold for just over S$2m (S$1,487/sq ft). The seller made S$900 888 profit, which is 82 percent over its initial price of S$1.1m ($818 psf), back in April 2017. That’s an annualised return of 9.1 per percent.
Cushman & Wakefield analyzed caveats of non-landed residential homes
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 duties and buyer stamp duties.
In total, prime CCR-owned properties accounted in the first-quarter of this fiscal year for 55 percent of losses-making private-home deals, according to caveat-data of landed- and non-landed-private homes. RCR represented 36% and OCR, 9% of all such deals.
Despite the CCR having a larger percentage of loss-making sales, the majority – at 84% – of CCR transactions were profitable.
Due to local demand, and strong property ownership by owners, the percentage of loss-making transactions in landed and un-landed sectors has remained at 2.8%. These were supported in part by low unemployment and strong household financials.
Analysts say that even though buyer affordability is still low and buyer resistance may grow as a result of the high housing prices and interest rates, they predict that overall losses will be kept to a minimum in the coming months.
