The Ritz-Carlton Residences deals wortS$16.5 million at The Ritz-Carlton Residences are the biggest Q1 gainsers, with a seller earning S$4.9 million in profit.
Cushman & Wakefield has crunched data for the Business Times and found that in January, the 33rd level unit of the luxury freehold development in District 9, was sold for S$16.5mil or S$5,397 psf. BT earlier reported that the price of the prime residential market had crossed the S$5,000 psf threshold for the first since June 2023. The seller realized a gain in S$4.9 million, or 42 percent over the purchase price (S$11,6 million / S$3,795 sq. ft.).
The seller’s annualised profit was 4.5 percent based on an eight-year holding period
In addition, the data showed that five of the five largest transactions in terms of quantum were also all in Singapore’s Core Central Region. It was due to the higher prices and larger transacted unit sizes in the Core Central Region (CCR). Out of the five, there were four freehold properties. These tend to be more expensive.
Data from Q1 showed that prime properties accounted for the majority of the worst performers in the quarter, both by percentage gain and quanta. The most significant losses were between SS$381,000 – S$983,555. These units were acquired at various times during the market cycle.
In the last two quarterly quarters, CCR transactions were also among the top loss-making deals. The losses in Q4 were between S$281,000 and S$2,39 million, and in Q3, they ranged between S$267,000 and S$700,000.
A 936 sq ft apartment at the freehold condominium Robinson Suites in district 1 was the deal with the highest amount of red ink, both in terms on quantum and in percentage. The unit was bought for S$1.8m, or S$1,922psf, in January. This was 35% less than the original S$2.78m ($2,972psf) price from May 2013. On the basis of a 10.7-year holding period, this would translate to an annualised loss of 4%.
In terms of percent gains, executive condominium transactions (EC) continued a pattern that began in the first quarter of 2023
Treasure Crest EC units were the five most profitable resale transactions. Sellers doubled their profits, earning between S$716,000 to S$921,000.
The five 99 year leasehold units located in Sengkang District 19 were held an average of eight years before they were sold with a profit that ranged from 98 to 106%.
Top of the list is a 1,249 sq. ft. Treasure Crest unit that sold for S$1.79m or S$1,434psf. in January. The original unit price was S$869,000 or S$696 psf in July 2016; this sale was 106% more. With a holding period spanning 7.5 years the annualised return was 10.2%.
Four out of five units that accounted for the highest percentage gains, excluding ECs (Extra Central Region), were located in suburban Outside Central Regions (OCR). The highest percentage gain was achieved by a unit on the city edge, or Rest of Central Region.
In March, the 1,346-square-foot unit at Eastwind Mansions in District 15 along Joo Chiat Terrace was sold slightly above S$2,000,000 (S$1,487 per square foot). The seller earned S$900,888 (82%) over the price of S$1.1million (S$818 per sq ft) originally set in April 2017 translating into an annualised profit rate of 9.1 percent based upon a holding period for 6.9 years.
Cushman & Wakefield conducted a study to examine caveats
Cushman & Wakefield conducted a study to examine caveats that apply to non-landed private houses purchased in Q1 of 2024, with a previous purchase history between January 2012 and March 2024. The analysis did not include transaction costs or taxes, like buyer stamp duty or seller stamp duty.
Caveat data on landed and un-landed private properties shows that prime CCR homes accounted for 55% of the loss-making deals made in the first quarter this year. RCR deals accounted 36 percent of the total, while OCR deals accounted 9 percent.
Although CCR sold more deals that were loss-making, 84 per cent of CCR sales were profitable.
In Q1, the proportion of deals that were a loss in the non-landed and landed sectors was only 2.8%, largely due to strong local demand and the ability of property owners to hold onto their properties. They were supported by low unemployment rates and healthy household balance sheets.
Analysts predict that the overall level of losses-making transactions will remain low. This is despite high interest rates, which are still at record levels.
Core Central Region is home to five of the top five highest-value transactions, ranked by their quantum, in Q1.
The sale of an 3,057-square-foot unit at The Ritz-Carlton Residences Singapore Cairnhill in absolute terms was the most lucrative resale in the first quarter 2024. The seller made a tidy S$4.9-million gain.
