Over the last two weeks, we covered executive condo and condo transactions that have made capital gains in May 2023.
As reported in the 99-SRX flash report, resale condo prices rose by 0.9% last month (albeit a slower increase than April’s 1.3% increase).
Nonetheless, there have been condos that were sold at a loss last month.
(Shout out to the data team at 99.co, who have helped us match the latest and previous transactions of the same units to calculate the capital gains and losses of the respective units. Other costs, such as stamp duty, legal fees and agent’s commissions, are not taken into account.)
Condos sold at a loss in May 2023 recorded a loss averaging S$342k
According to URA data (captured as of 28 June 2023), 38 condo transactions recorded a capital loss in May 2023, with an average of around S$342,000.
The highest capital loss in the month was S$3,075,000 from the sale of a 5,607 sqft unit at Aalto. Bought for S$16,275,000 in March 2008, the owners sold it for S$13.2 million 15 years later. This works out to a capital loss of 18.9%, or 1.39% when annualised.
Meanwhile, the lowest capital loss for the month was from the sale of a 366 sqft unit at Skysuites @ Anson this month. Bought for S$930,900 in August 2017, it was sold for S$900 lower than the purchase price, after a holding period of six years. This means the capital loss was 0.1%, or 0.02% when annualised.
Top 10 losses made by condos in May 2023 (by quantum)
| Condo name | Region | District | Size (sqft) | Purchase price and date | Sale price and date | Capital loss | Years held | Annualised loss |
| Aalto | RCR | 15 | 5,607 | S$16.3m
Mar 2008 |
S$13.2m
May 2023 |
S$3.08m
18.9% |
15 | 1.39% |
| Reflections At Keppel Bay | RCR | 4 | 2,186 | S$6.10m
Aug 2010 |
S$4.5m
May 2023 |
S$1.6m
26.2% |
13 | 2.31% |
| Cliveden At Grange | CCR | 10 | 2,842 | S$9.50m
Aug 2007 |
S$8.1m
May 2023 |
S$1.4m
14.8% |
16 | 0.99% |
| CityVista Residences | CCR | 9 | 2,788 | S$7.18m
Jul 2007 |
S$6.1m
May 2023 |
S$1.08m
15.1% |
16 | 1.02% |
| Reflections At Keppel Bay | RCR | 4 | 2,357 | S$4.83m
Jul 2007 |
S$3.8m
May 2023 |
S$1.03m
21.4% |
16 | 1.49% |
| One Draycott | CCR | 10 | 732 | S$2.70m
Jul 2018 |
S$2.2m
May 2023 |
S$500k
18.5% |
5 | 4.02% |
| Reflections At Keppel Bay | RCR | 4 | 1,539 | S$2.89m
May 2007 |
S$2.5m
May 2023 |
S$393k
13.6% |
16 | 0.91% |
| The Siena | CCR | 10 | 753 | S$1.76m
Feb 2014 |
S$1.44m
May 2023 |
S$318k
18.1% |
9 | 2.19% |
| The Sail @ Marina Bay | CCR | 1 | 861 | S$1.9m
Sep 2012 |
S$1.6m
May 2023 |
S$300k
15.8% |
11 | 1.55% |
| OUE Twin Peaks | CCR | 9 | 570 | S$1.54m
Oct 2010 |
S$1.26m
May 2023 |
S$285k
18.4% |
13 | 1.56% |
Figures (except floor area) in the table are rounded off to 3 significant figures.
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6 of the top 10 loss-making units came from the CCR
Among the 10 highest loss-making units based on quantum last month, six came from the Core Central Region (CCR). Among these CCR units, three came from District 10.
Meanwhile, the remaining four units came from the Rest of Central Region (RCR).
What caught our attention is that among these four RCR units, three came from Reflections at Keppel Bay. In fact, the second highest capital loss came from the project, when a 2,186 sqft unit was sold at a loss of S$1,597,500.
A similar trend was also observed when we looked at the region breakdown of all the 38 loss-making transactions. A majority of them (26 units or 68%) had come from the CCR, while 11 came from the RCR. There was only one unit from the Outside Central Region (OCR) that made a loss last month.
Although most condo losses were from the CCR, CCR resale condos saw a monthly price increase of 1.7% last month — the highest among the three regions.
Meanwhile, OCR resale condo prices increased by 1.6%, while RCR resale condo prices dropped by 0.3%.
Half of the top 10 loss-making units were at least 2,000 sqft
Another interesting trend we observed among these top 10 loss-making units was their huge size. In fact, the top 5 condo losers had a floor area of at least 2,000 sqft.
We should also point out that the Aalto unit, which recorded the highest capital loss last month, spans a whopping 5,607 sqft! It’s also the biggest unit among the 38 loss-making units.
So even though we’re seeing more demand for bigger homes due to work-from-home and flexible work arrangements since the pandemic, selling a bigger home in this climate doesn’t necessarily translate to a capital gain.
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8 of the top 10 loss-making units were bought during property booms
As a property portal, we don’t encourage timing the market.
At the same time, there’s no denying that the cycles in which you buy and sell the property can affect your capital gains.
We’ve previously highlighted in the past few articles on monthly condo losses that a lot of these units were bought during the property booms in the last two decades.
Similarly, among the top 10 condo losers in May 2023, eight were bought during property booms (four units in 2007, two in 2010, one in 2012 and one in 2018).
So even if home owners exited the market when prices were rising, these owners were not able to sell their units at a higher price than what they paid for.
Planning to cut your losses and sell your property? Let us help you get the right price by connecting you with a premier property agent.
If you found this article helpful, 99.co recommends Ardmore Park unit made S$7.05m profit; highest capital gain for resale condos in May 2023 and Which types of condos were bought below S$1 million since the start of 2023?
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