The seller made S$4.9m on the sale of a 3,057 sq ft unit at The Ritz-Carlton Residences Singapore Cairnhill.

Cushman & Wakefield’s data crunched by The Business Times shows that in January, the 33rd level unit of the luxury freehold development in District 9, was sold for S$16.5M or S$5,397 psf. BT earlier reported that the prime residential market prices had crossed the S$5,000 psf level for the first time since 2023.

The seller realized a gain in S$4.9 million, or 42 percent over the purchase price (S$11,6 million / S$3,795/sqft).

The seller’s annualized profit was 4.5 percent based on an eight-year holding period.

In addition, the data showed that five of the five largest transactions by value in Q1 all took place in Singapore’s Core Central Region. It was due to the higher prices and larger transacted unit sizes in the Core Central Region (CCR).

Four of the five were freeholds, which tends to command a premium price, he said.

Data from Q1 showed that the largest losers of the quarter, by both percentage gain as well as quantum, were also prime properties. The most significant losses were between SS$381,000 – S$983,555. These units were acquired at various times in the market cycle.

In the past two quarterly quarters, CCR transactions were the top-losing deals. The losses in Q4 were between S$281,000 – S$2.39 million, and S$267,000 – S$700,000.

A 936 sq ft apartment at the freehold condominium Robinson Suites in district 1 was the deal with the highest amount of red ink, both in terms on quantum and in percentage. The unit was bought for S$1.8m, or S$1,922psf, in January. This was 35 percent lower than its original May 2013 price of S$2.78 (S$2,972 per sq ft) On the basis of a 10.7-year holding period, this would translate to an annualised loss of 4%.

In terms of percent gains, executive condominium transactions (EC) continued a pattern that began in the first quarter of 2023.

Treasure Crest EC units were the five most profitable resale transactions. Sellers doubled their profits, earning between S$716,000-S$921,000.

The five 99 year leasehold units located in Sengkang District 19, were held an average of eight years before they were sold with a profit that ranged from 98 to 106%.

Top of the list is a 1,249 sq. ft. Treasure Crest unit that sold for S$1,79 million in January or S$1,434/sq.ft. The original unit price was S$869,000 or S$696 per square foot in July 2016; this sale price was 106% more. With a holding period 7.5 years long, the annualised return was 10.2 percent.

 Including ECs, the four top gainers in percentage were for units outside the Central Region. The highest percentage gain was achieved by a unit on the city edge, or Rest of Central Region.

The 1,346 square ft apartment at Eastwind Mansions, located along Joo Chiat Terrace within District 15, was sold in March for slightly over S$2 million (1,487 S$ psf). The seller earned S$900,888 (82%) over the price of S$1.1m ($818/sqft) originally set in April 2017. That’s an annualised profit rate of 9.1 % based upon a holding period for 6.9 years.

Cushman & Wakefield conducted a study to examine caveats that apply to non-landed private properties purchased in Q1 of 2024, with a previous purchase history between January 2012 and March 2024. The analysis did not include transaction costs or taxes, like buyer stamp duty and sellers stamp duty.

Caveat data on landed and un-landed homes shows that prime CCR property accounted for 55% of the loss-making deals made in the first quarter this year. RCR deals accounted 36 percent of the total, while OCR deals accounted 9 percent.

The majority of CCR deals – 84 percent – are profitable, despite the fact that the CCR has a greater share of loss-making transactions.

In Q1, the proportion of deals that were a loss in both landed and non landed sectors was 2,8 percent, largely due to the property owners’ strong hold and the resilient local demand. They were backed by low unemployment rates and healthy household balance sheets.

Overall, the number of deals that result in a loss is expected to be low. This is despite the fact that buyer affordability is still a problem and buyer resistance will likely grow because of high interest rates.

Find out more on the only freehold mega condo in D15: The Continuum