Last week, we covered the top 10 condos sold at record capital gains by regions (CCR, RCR and OCR) and holding periods (less than 10 years and more than 10 years).
Today, we’ll review the top 28 condo units in November 2022 (based on URA data captured from 1st to 25th November 2022), which sold at a capital loss.
If you’re a holder of a condo unit, you may wonder why any homeowner would sell his apartment at a loss.
This is because, besides the capital loss, the homeowner’s losses would be much higher if he factors other costs like legal fees, stamp duties, interest payments, taxes, maintenance, renovations, repairs, etc.
The key aspect to note here is that if he had held onto the apartment for many years, these expenses would have accumulated yearly. So it would make sense to cut loss and sell it now before they accumulate even more.
Some may even do so because they need the cash or are forced to liquidate due to court proceedings.
A few would sell at a capital loss because they want to hedge against the sale with their diversified assets.
Suppose their overall portfolio is net positive – it won’t hurt to let go of this loss-making property to reinvest their proceeds into other more lucrative investments with better returns.
One thing to remember is not all condo units in the same development would sell at a loss. For example, while two units at Reflections at Keppel Bay sold at a loss in November, earlier in September, one seller made a capital gain of S$6.6m selling one.
So no two units are the same – even if they are two apartments side-by-side on the same floor; one may be sold at a loss and another at a gain.
Whatever the reasons, you can glean some patterns and lessons here. Hopefully, it will help you with your research when you speak to a property consultant to list your property for sale.
|Property Name||Address||Floor range||Project size (units)||TOP||Tenure||Region||District||Floor area (sqft)||Purchase Price (S$)||Date of purchase (YY-MM-DD)||Sale Price (S$)||Date of sale (YY-MM-DD)||Capital Loss (S$)||Holding Period (in years)||Return||Annualised|
|Marina Collection||15 COVE DRIVE||4-6||124||2011||99 years||CCR||4||3412||7,700,000||2010-05-26||5,050,000||2022-11-10||-2,650,000||12.4||-34.42%||-3.34%|
|Helios Residences||17 CAIRNHILL CIRCLE||16-18||140||2011||Freehold||CCR||9||1701||6,000,000||2007-12-04||3,980,000||2022-11-14||-2,020,000||14.9||-33.67%||-2.71%|
|CityVista Residences||21 PECK HAY ROAD||10-12||70||2011||Freehold||CCR||9||2626||7,152,996||2007-07-04||5,200,000||2022-11-07||-1,952,996||15.3||-27.30%||-2.06%|
|Helios Residences||17 CAIRNHILL CIRCLE||16-18||140||2011||Freehold||CCR||9||1313||4,623,000||2007-08-06||3,058,000||2022-11-09||-1,565,000||15.3||-33.85%||-2.67%|
|The Orchard Residences||238 ORCHARD BOULEVARD||34-36||175||2010||99 years||CCR||9||2853||10,000,000||2010-03-03||9,100,000||2022-11-01||-900,000||12.6||-9.00%||-0.75%|
|Marina Bay Suites||3 CENTRAL BOULEVARD||19-21||221||2013||99 years||CCR||1||2056||4,407,000||2009-12-18||3,758,000||2022-11-07||-649,000||12.8||-14.73%||-1.23%|
|Leonie Suites||21 LEONIE HILL||19-21||97||2006||99 years||CCR||9||689||1,440,000||2007-10-29||1,138,888||2022-11-08||-301,112||15.0||-20.91%||-1.55%|
|Orchard Scotts||7 ANTHONY ROAD||1-3||387||2007||99 years||CCR||9||1873||3,400,000||2009-12-11||3,120,000||2022-11-07||-280,000||12.8||-8.24%||-0.67%|
|OUE Twin Peaks||33 LEONIE HILL ROAD||10-12||462||2014||99 years||CCR||9||570||1,553,200||2016-09-15||1,300,000||2022-11-17||-253,200||6.2||-16.30%||-2.84%|
|Goodwood Residence||261 BUKIT TIMAH ROAD||1-3||210||2013||Freehold||CCR||10||1485||3,398,000||2011-03-31||3,150,000||2022-11-22||-248,000||11.6||-7.30%||-0.65%|
|Marina One Residences||23 MARINA WAY||7-9||1042||2018||99 years||CCR||1||732||1842144||2019-06-07||1640000||2022-11-18||-202144||3.4||-10.97%||-3.34%|
|Reflections At Keppel Bay||29 KEPPEL BAY VIEW||1-3||1129||2011||99 years||RCR||4||1539||2,510,054||2011-11-02||2,330,000||2022-11-02||-180,054||11.0||-7.17%||-0.67%|
|Pollen & Bleu||19 FARRER DRIVE||4-6||106||2017||99 years||CCR||10||1141||2,315,400||2017-04-13||2,200,000||2022-11-11||-115,400||5.5||-4.98%||-0.93%|
|Fulcrum||33 FORT ROAD||13-15||128||2016||Freehold||RCR||15||474||1,132,364||2012-08-23||1,030,151||2022-11-25||-102,213||10.3||-9.03%||-0.92%|
|Skysuites@Anson||8 ENGGOR STREET||37-39||360||2015||99 years||CCR||2||667||1,420,200||2013-06-05||1,335,000||2022-11-21||-85,200||9.4||-6.00%||-0.65%|
|Robin Suites||25 ROBIN ROAD||7-9||92||2015||Freehold||CCR||10||463||1,070,000||2016-05-16||988,000||2022-11-04||-82,000||6.4||-7.66%||-1.23%|
|Espada||48 ST. THOMAS WALK||22-24||232||2013||Freehold||CCR||9||560||1305760||2010-06-22||1228000||2022-11-11||-77760||12.3||-5.96%||-0.50%|
|Suites At Orchard||38 HANDY ROAD||4-6||118||2014||99 years||CCR||9||613||1,276,880||2010-11-11||1,200,000||2022-11-16||-76,880||12.0||-6.02%||-0.52%|
|Reflections At Keppel Bay||3 KEPPEL BAY VIEW||7-9||1129||2011||99 years||RCR||4||1109||1,842,610||2017-10-17||1,780,000||2022-11-02||-62,610||5.0||-3.40%||-0.69%|
|10 Shelford||10 SHELFORD ROAD||4-6||69||2014||Freehold||CCR||11||839||1,209,600||2011-05-30||1,160,000||2022-11-11||-49,600||11.4||-4.10%||-0.37%|
|One Dusun Residences||1 JALAN DUSUN||28-30||154||2017||Freehold||RCR||12||797||1,322,700||2012-09-11||1,280,000||2022-11-18||-42,700||10.2||-3.23%||-0.32%|
|Corals At Keppel Bay||1 KEPPEL BAY DRIVE||4-6||366||2016||99 years||RCR||4||1303||2,588,100||2013-06-17||2,552,000||2022-11-14||-36,100||9.3||-1.39%||-0.15%|
|The Glades||10 BEDOK RISE||7-9||726||2017||99 years||OCR||16||624||1006200||2017-02-06||980000||2022-11-25||-26200||5.8||-2.60%||-0.46%|
|Suites @ Topaz||3 TOPAZ ROAD||1-3||46||2013||Freehold||RCR||12||473||678,910||2015-03-10||660,000||2022-11-04||-18,910||7.6||-2.79%||-0.37%|
|Flamingo Valley||478 SIGLAP ROAD||1-3||393||2014||Freehold||OCR||15||517||881,600||2014-08-20||865,000||2022-11-24||-16,600||8.3||-1.88%||-0.23%|
|SeaHill||121 WEST COAST CRESCENT||19-21||338||2016||99 years||OCR||5||528||789,575||2012-11-30||776,000||2022-11-17||-13,575||9.9||-1.72%||-0.17%|
|V On Shenton||5A SHENTON WAY||16-18||510||2017||99 years||CCR||1||441||957,000||2012-08-28||950,000||2022-11-02||-7,000||10.2||-0.73%||-0.07%|
|Parc Sophia||10 ADIS ROAD||1-3||152||2013||Freehold||CCR||9||474||900,000||2012-05-14||900,000||2022-11-10||0||10.4||0.00%||0.00%|
Based on the list, here are several observations:
Biggest capital loss
The biggest capital loss of S$2.65m, was from a 3,412-square-foot (sqft) unit (4-bedroom penthouse) within the 4-6th floor range at Marina Collection, on the Southern Islands of Sentosa.
The seller bought the unit for S$7.7m in May 2010, and held it for 12.4 years before selling it for S$5.05m in November 2022. He had to contend with a 34.42% capital loss, or -3.34% annually.
Are no two holders the same?
Two District 9 property sellers – one at 70-unit CityVista Residences and another at 140-unit Helios Residences – suffered near-similar losses after buying their respective apartments one month apart and holding onto their properties for the same 15.3 years.
The former’s CityVista 2,626-sqft apartment was purchased for S$7.153m in 2007 while the latter’s Helios 1,313-sqft apartment was bought for S$3.058m in 2007.
Both properties were completed in 2011.
Both sellers sold their respective apartments in November 2022, just two days apart. The CityVista seller suffered a loss of S$1.953m (-27.3%), while the Helios seller lost S$1.565m (-33.9%).
Annualised, their losses are -2.06% and -2.67%, respectively.
61% on the list held their property beyond 10 years
61% (17) of the 28 sellers held their properties between 10 and slightly over 15 years.
This group suffered losses from S$0 (breakeven) to S$2.65m (-34.42%). If we remove both extremes, the range is S$7,000 to S$2.02m. It is -0.73% to -33.85% in percentage terms.
The remaining 39% (11) held onto their properties between 3.4 to 9.9 years. They suffered losses from S$13,575 to S$253,200, or -1.72% to -16.3% percentage-wise.
It seems that those who sold earlier suffered less in capital losses.
Both a long-term and short-term seller share the same annualised loss
A seller from 1042-unit Marina One Residences held his 570-sqft unit for 3.4 years before selling it for a S$202,144 capital loss, or -10.97%.
His annualised loss was -3.34%.
The Marina Collection seller, who held onto his unit for 12.4 years, also saw an annualised loss of -3.34%.
In other words, from an annualised loss perspective, there is no distinction between whether you’ve held onto a property longer or shorter.
54% of sellers were from lower floor units (up to 9th floor)
54% (15) were from sub-10th floor units. Six were within the 1st-3rd floors, five from 4th-6th floors and four from the 7th-9th floors.
If we look at their capital losses, the range is between S$0 (breakeven) and S$2.65m. If we remove these extremes, it’s actually S$16,600 to S$280,000. In percentage terms, the range is -1.39% to -10.97%.
Their holding periods vary as well, from 3.4 years to 12.8 years.
For the 46% (13) living from the 10th floor upwards, their capital losses are from S$7,000 to S$2.02m. The range is between -0.73% and -33.85% in percentage terms.
Their holding periods are from 6.2 to 15.3 years.
It seems that sellers living on lower floors sold earlier than those living on higher floors.
Only 11% of sellers are from the OCR
Only 11%, or 3 sellers, are from the Outside of Central Region (OCR).
They are owners of smaller units (473 to 624 sqft apartments), registering smaller losses between S$14k to S$26k, or -1.72% to -2.6% in percentage terms. Annualised, the range is -0.17% to -0.46%.
Only one of the three units is freehold, the other two are on 99-year leases. Length-wise, they held their properties for 5.8 to 9.9 years.
The rest are from CCR (68%) and RCR (21%).
57% of sellers are 99-year leasehold owners
Finally, 16 sellers (57%) were owners of 99-year leasehold properties, while the remaining 12 (43%) were freehold property owners.
11 (58%) of the 19 sellers who owned properties in the CCR were 99-year leasehold units. The remaining 8 (42%) owned freeholds.
Based on the November list, the difference between leasehold and freehold units sold at a capital loss is small.
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