More Owners Were Selling Properties Last Year To Take Advantage Of Peak Property Prices
More private homeowners in Singapore sold their properties last year, as home prices appear to have peaked and the white-hot real estate market eased after multiple rounds of cooling measures.
The total number of deals for non-landed private homes, including executive condominiums, with a holding period of five years or less nearly quadrupled to 2,507 in 2023, from 681 in 2019. Gross profits earned on disposal on non-landed units within a five-year holding period also increased.
The median profit grew 33.5 per cent to S$247,000 in 2023, from S$185,000 the previous year, and doubled from the S$123,241 recorded in 2019, Cushman & Wakefield found.
Given steep price increases, there were more sellers who sold their properties earlier, as the proportion of deals with shorter holding periods increased. Some may have done so anticipating weaker prices in the coming year according to the research consultancy.
Others could be investors who are choosing to cash out as they face a potential double whammy of increasing mortgage payments due to the progressive payment scheme for BUC properties and still-elevated interest rates.
Rents have also weakened amid a flurry of new completions of condominiums and BTO flats in 2023.
Based on the latest date from URA, private home rents fell 2.1 per cent in Q4 2023. For the year, rents grew 8.7 per cent, significantly slower than the 29.7 per cent surge in 2022.
In the coming year, residential property deals with shorter holding periods of five years of less could continue to account for a higher proportion of sale sand subsales, especially as interest rates remain relatively high.
It is expected that the trend might reverse slights in 2025, as interest rates reduce further and rents start to recover with lower supply expected over 2024 to 2026.
(Source: The Business Times)
>>> For Property Insights
Do you plan to buy or sell your property?
You may be thinking what is the next step for you and if it is worth going through the necessary groundwork to buy or sell a property.
When is the best time to buy and how can I purchase it at the best price?
Or when should I start selling and if I can sell it for a better price than my neighbours?
Here at The Landed Collective, we specialise in residential properties and that means, HDB flats, Condos, Landed Houses and New Developer Sales.
Before you start anything, speak to us for a complimentary consultation as we will provide you with comprehensive advice, run through the essentials on the property market and answer any questions you may have.