39 condo units sold at a loss in February, the biggest at $2.68m

Condo name	Size (sq ft)	Purchase price (S$) and date	Sale price (S$) and date	Capital gain (S$)	Capital gain (%)	Years held	Annualised loss
Paterson Suites	4,845	14,532,000   1 Sep 2011	11,850,000   1 Feb 2023	-2,682,000	-18.5%	12	-1.69%
CityVista Residences	2,809	7,702,455   25 Jul 2007	5,688,800   21 Feb 2023	-2,013,655	-26.1%	16	-1.88%
Marina Collection	1,873	4,907,280   2 Jan 2008	3,300,000   21 Feb 2023	-1,607,280	-32.8%	15	-2.61%
The Scotts Tower	851	3,080,000   28 Sep 2012	1,770,000   24 Feb 2023	-1,310,000	-42.5%	11	-4.91%
The Orchard Residences	2,175	7,800,000   11 Feb 2010	6,700,000   27 Feb 2023	-1,100,000	-14.1%	13	-1.16%
Helios Residences	1,281	3,938,790   30 Jul 2007	3,080,000   2 Feb 2023	-858,790	-21.8%	16	-1.53%
The Clift	786	1,960,000   21 Oct 2011	1,350,000   15 Feb 2023	-610,000	-31.1%	12	-3.06%
OUE Twin Peaks	1,055	3,057,820   14 Oct 2010	2,450,000   24 Feb 2023	-607,820	-19.9%	13	-1.69%
Marina Bay Suites	1.604	3,403,000   29 Dec 2009	2,810,000   1 Feb 2023	-593,000	-17.4%	14	-1.36%
CityVista Residences	2,809	6,200,000   22 Oct 2018	5,750,000   15 Feb 2023	-450,000	-7.3%	5	-1.50%
Marina One Residences	1,205	2,910,000   23 Dec 2019	2,500,000   22 Feb 2023	-410,000	-14.1%	4	-3.73%
The Sail @ Marina Bay	689	1,930,000   21 May 2012	1,560,000   6 Feb 2023	-370,000	-19.2%	11	-1.92%
Pollen & Bleu	1,162	2,248,250   18 May 2017	1,890,000   13 Feb 2023	-358,250	-15.9%	6	-2.85%
Martin Modern	1,012	3,246,000   16 Dec 2018	2,906,800   15 Feb 2023	-339,200	-10.4%	5	-2.18%
The Sail @ Marina Bay	893	1,786,000   10 Dec 2013	1,450,000   17 Feb 2023	-336,000	-18.8%	10	-2.06%
Reflections At Keppel Bay	1,625	3,615,300   7 May 2007	3,280,000   20 Feb 2023	-335,300	-9.3%	16	-0.61%
The Sail @ Marina Bay	689	1,760,000   2 Jun 2010	1,468,888   10 Feb 2023	-291,112	-16.5%	13	-1.38%
OUE Twin Peaks	570	1,540,000   23 Apr 2018	1,255,000   14 Feb 2023	-285,000	-18.5%	5	-4.01%
111 Emerald Hill	1,970	4,779,281   4 Oct 2012	4,500,000   27 Feb 2023	-279,281	-5.8%	11	-0.55%
111 Emerald Hill	2,120	4,772,250   8 Jul 2013	4,525,000   15 Feb 2023	-247,250	-5.2%	10	-0.53%
OUE Twin Peaks	549	1,443,800   18 Jan 2017	1,200,000   22 Feb 2023	-243,800	-16.9%	6	-3.04%
Marina Bay Suites	1,571	3,285,000   21 Dec 2009	3,100,000   21 Feb 2023	-185,000	-5.6%	14	-0.41%
Vida	527	1,260,000   28 Dec 2012	1,080,000   16 Feb 2023	-180,000	-14.3%	11	-1.39%
Lumiere	915	1,732,500   9 Feb 2010	1,594,000   17 Feb 2023	-138,500	-8%	13	-0.64%
Stellar RV	926	1,611,700   17 Sep 2012	1,505,000   27 Feb 2023	-106,700	-6.6%	11	-0.62%
The Clift	506	1,108,140   4 Jul 2011	1,028,000   14 Feb 2023	-80,140	-7.2%	12	-0.62%
Prestige Heights	345	660,000   12 Jul 2013	605,000   9 Feb 2023	-55,000	-8.3%	10	-0.87%
SilverSea	1,066	1,924,000   29 May 2012	1,880,000   24 Feb 2023	-44,000	-2.3%	11	-0.21%
Urban Lofts	754	952,000   5 May 2011	911,000   7 Feb 2023	-41,000	-4.3%	12	-0.37%
The Rise @ Oxley – Residences	818	1,871,396   14 Oct 2016	1,838,000   27 Feb 2023	-33,396	-1.8%	7	-0.26%
Duo Residences	1,001	2,256,000   11 Dec 2013	2,225,000   28 Feb 2023	-31,000	-1.4%	10	-0.14%
Waterscape at Cavenagh	1,184	2,244,000   19 Mar 2010	2,218,000   10 Feb 2023	-26,000	-1.2%	13	-0.09%
Nine Residences	710	931,000   18 Aug 2014	905,000   10 Feb 2023	-26,000	-2.8%	9	-0.
Reflections At Keppel Bay	893	1,500,000   22 Mar 2012	1,480,000   24 Feb 2023	-20,000	-1.3%	11	-0.12%
The Interweave	409	720,800   31 Oct 2014	708,000   22 Feb 2023	-12,800	-1.8%	9	-0.20%
Loft @ Nathan	377	785,700   19 Oct 2010	775,000   2 Feb 2023	-10,700	-1.4%	13	-0.11%
Sun Plaza	1,357	960,000   21 Aug 2012	950,000   21 Feb 2023	-10,000	-1%	11	-0.1%
Reflections At Keppel Bay	1,012	1,744,200   27 Apr 2010	1,740,000   23 Feb 2023	-4,200	-0.2%	13	-0.02%
Loft @ Nathan	1,022	1,449,591   14 May 2013	1,448,800   27 Feb 2023	-791	-0.1%	10	-0.005%

92.3 per cent of the loss-making units were bought during a property boom

A common trend we observed was that most of the units (36) were bought when prices were sky-high. This is one likely reason why the owners still suffered capital losses despite selling the properties during a peak.

When we filtered them down by their holding periods, 30 of them (76.9 per cent) were held for at least 10 years. All were bought during a robust property market, except a unit from Marina Collection and two units from Marina Bay Suites, which were bought when prices were down in 2008 to 2009.

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76.9 per cent of the loss-making transactions came from the CCR

Interestingly, among these 39 loss-making units, a majority of them (30 units or 76.9 per cent) came from the Core Central Region (CCR).

The Rest of Central Region (RCR) recorded seven condo losses, while only two units from Outside Central Region (OCR) were sold at a loss.

As mentioned in the 99-SRX Flash Report for February 2023, prices of resale condos in the CCR have dropped in the month, albeit marginally by 0.3 per cent. This may explain the relatively high number of condo losses coming from the CCR.

Meanwhile, when compared by market segments, those in the OCR have seen the highest price growth at 2.3 per cent. This is followed by resale condos in the RCR, which clocked a price increase of 1.4 per cent.

According to Wong Siew Ying, Head of Research and Content at PropNex Realty, one possible explanation is that prices at new launches, such as Terra Hill in the RCR and Sceneca Residence in the OCR, may have influenced resale prices in these market segments.

64.1 per cent of the loss-making units were from upper floors

Another trend we noticed was that more than half (25 out of 39) of the loss-making units had come from the upper floors, from the 10th storey to the 40th storey.

Considering that upper-floor units tend to be in higher demand and command higher prices, it’s interesting that a handful of them were sold at a loss.

A likely explanation is that owners from the upper-floor units may have held their units longer, hoping for the right time to sell their properties when the price is right. In fact, among these 25 upper-floor units, 18 were held for at least 10 years.

On the other hand, some owners of lower-floor units may have sold their units earlier to cut their losses.

ALSO READ: Does holding a condo for more than 20 years mean higher gains?

This article was first published in 99.co.