Wednesday, July 04, 2012

Private property owners making big gains

Since 2009, private homeowners in Singapore have greatly benefitted from the recovery in the property market.

A report by Square Foot Research revealed that owners received at least S$20.3 billion in gross profit since late 2009 based on caveats data. This explains the strong sales figure of S$60.1 billion recorded during the period, noted the report.

Square Foot added that actual figures could be a lot higher if gains from collective sales were factored into the research.

But overall profitability slid to S$2.7 billion in the first half 2012 compared to the S$3.2 billion and S$4 billion in 2H2011 and 1H2011 respectively.

At the same time, the percentage of unprofitable transactions in the secondary market rose to two percent in 1H2012, from one percent in 2H2011.

On the upside, average profitability per transaction in the secondary market hit a new high of S$522,056 in 1H2012, nearly double the S$288,991 in H22009.

According to data from Square Foot and the URA (Urban Redevelopment Authority), the top five most profitable secondary market projects are Serangoon Garden Estate (with S$59 million in profit realised), The Quintet, Frankel Estate, Seletar Hills Estate and Trevista.

The least profitable projects are Reflections at Keppel Bay (with a total loss of S$7.4 million), St Regis Residences, Latitude, CityVista Residences and Duchess Residences.

View the original article here

Source From Property Guru

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