Thursday, March 29, 2012

Shoebox subsales fare better than larger units

Compared to larger units, shoebox apartments have performed better in the subsale market even after the seller's stamp duty (SSD) was taken into account, according to The Business Times.

Around 14 percent or 47 out of the 115 subsale condos and apartments in 2011 were up to 500 sq ft (which are classified under shoebox apartments), based on a study by Savills.

Shoebox units also recorded higher profits post-SSD as well as average percentage gains per unit.



Savills’ analysis also showed that of the 47 shoebox units transacted, 95.7 percent were in the black, which is therefore higher than the 85.3 percent of the 68 larger units that made a profit.

Of the profitable shoebox units, the average gain was 18.9 percent per unit, better than the 13 percent return for units above 500 sq ft.

URA Realis caveats captured a total of 2,619 subsales for non-landed homes last year, for which Savills traced caveats for 2,337 early purchases.

The most popular projects in the subsale market were Livia (112 subsales), Double Bay Residences (99 subsales) and The Clift (70 subsales).

Other coveted projects were Martin Place Residences (pictured) and Clover by the Park, which hit 67 and 65 subsales respectively.

Four of the five projects received Temporary Occupation Permit (TOP) last year while Double Bay Residences is expected to TOP this year.

“These are all big-scale projects with more than 300 units each. And prices of units in the subsale market are attractive compared with new launches in the vicinity,” said Savills.

View the original article here

Source From Property Guru

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