During the third quarter of 2021, the sale of a 6,577 sq ft apartment at Yong An Park in District 9 was the most lucrative resale transaction by quantum.
This comes after the 25th-floor flat sold for $12.5 million in September, or $1,901 per square foot (psf), netting the seller a $8.7 million profit, according to Edmund Tie Research figures cited by The Business Times (BT).
The vendor purchased the freehold flat in 2000 for $3.8 million, or $578 per square foot. The deal resulted in an annualised profit of 5.7 percent due to the seller’s hanging on to the unit for about 21 12 years.
Edmund Tie Research classified caveats for private residences with past purchase histories that were transacted in Q3 2021 as profit- or loss-making trades, both in terms of dollar amounts and percentages.
The most lucrative deal by % was a 1,119 sq ft flat at Park View Mansion.
The ninth floor apartment of the District 22 complex was purchased for $220,000 in 2005, or $197 per square foot, and sold for $965,000, or $862 per square foot, in July of this year, for a tremendous gain of 340 percent.
The $862 psf price attained for the apartment, according to Lam Chern Woon, of Edmund Tie, was a historical high.
With a holding term of around 15 12 years, the yearly profit is approximately 10%.
The top five most successful deals in terms of percentage gain were all held for minimum 15 years, resulting in annualised profits of 6% to 10%. Four of the five sales were for freehold homes, with returns ranging from roughly 245 percent to over 340 percent across the board.
Meanwhile, freehold properties accounted for four of the five most lucrative deals by quantum, all of which were located in the Core Central Region (CCR).
According to BT, “profitable sales by quantum came largely from District 10 in Q3 2021, whereas loss-making sales came predominantly from District 9.”
“The average holding time of loss-making deals was 10 years, compared to 18 years for successful transactions.”
An 829 sq ft unit in a 99-year leasehold property in District 16 was the greatest loss-making transaction by percentage. The apartment was purchased for $1.1 million, or $1,327 per square foot, in 2018 and sold for $525,000, or $633 per square foot, in Q3 2021, resulting in a 20% annualised loss.
The greatest loss-making sale by quantum was a 7,050 sq ft unit in a 99-year leasehold property in District 4. The apartment in the Rest of Central Region (RCR) was acquired in 2007 for $17.95 million, or $2,546 per square foot, and sold in September for $11 million, or $1,560 per square foot, after more than 14 years. A loss of $6.95 million was incurred as a consequence of the transaction.