A review of the 28 condo units in SORA Condo that sold at a loss in November 2022

Last week, we covered the top 10 condos, including SORA Condo that sold at record capital gains by regions (CCR, RCR and OCR) and holding periods (less than 10 years and more than 10 years).

For transportation, the area is abounding with expressways and bus stops. It takes only 30 minutes to travel from SORA Condo site plan to the Orchard Road Shopping Strip. From there, it is easy to reach the Marina Bay Financial District and the Central Business District.

Today, we’ll review the top 28 condo units in November 2022 (based on URA data captured from 1st to 25th November 2022), which sold at a capital loss.

If you’re a holder of a condo unit, you may wonder why any homeowner would sell his apartment at a loss.

This is because, besides the capital loss, the homeowner’s losses would be much higher if he factors other costs like legal fees, stamp duties, interest payments, taxes, maintenance, renovations, repairs, etc.

The key aspect to note here is that if he had held onto the apartment for many years, these expenses would have accumulated yearly. So it would make sense to cut loss and sell it now before they accumulate even more.

Some may even do so because they need the cash or are forced to liquidate due to court proceedings

If your house is loss-making and your monthly expenses continually accumulate (or compound), perhaps selling it to reinvest the cash proceeds may be a more prudent approach.A few would sell at a capital loss because they want to hedge against the sale with their diversified assets.

Suppose their overall portfolio is net positive – it won’t hurt to let go of this loss-making property to reinvest their proceeds into other more lucrative investments with better returns.

One thing to remember is not all condo units in the same development would sell at a loss. For example, while two units at Reflections at Keppel Bay sold at a loss in November, earlier in September, one seller made a capital gain of S$6.6m selling one.

So no two units are the same – even if they are two apartments side-by-side on the same floor; one may be sold at a loss and another at a gain.

Whatever the reasons, you can glean some patterns and lessons here. Hopefully, it will help you with your research when you speak to a property consultant to list your property for sale.

Property Name Address Floor range Project size (units) TOP Tenure Region District Floor area (sqft) Purchase Price (S$) Date of purchase (YY-MM-DD) Sale Price (S$) Date of sale (YY-MM-DD) Capital Loss (S$) Holding Period (in years) Return Annualised
Marina Collection 15 COVE DRIVE 4-6 124 2011 99 years CCR 4 3412 7,700,000 2010-05-26 5,050,000 2022-11-10 -2,650,000 12.4 -34.42% -3.34%
Helios Residences 17 CAIRNHILL CIRCLE 16-18 140 2011 Freehold CCR 9 1701 6,000,000 2007-12-04 3,980,000 2022-11-14 -2,020,000 14.9 -33.67% -2.71%
CityVista Residences 21 PECK HAY ROAD 10-12 70 2011 Freehold CCR 9 2626 7,152,996 2007-07-04 5,200,000 2022-11-07 -1,952,996 15.3 -27.30% -2.06%
Helios Residences 17 CAIRNHILL CIRCLE 16-18 140 2011 Freehold CCR 9 1313 4,623,000 2007-08-06 3,058,000 2022-11-09 -1,565,000 15.3 -33.85% -2.67%
The Orchard Residences 238 ORCHARD BOULEVARD 34-36 175 2010 99 years CCR 9 2853 10,000,000 2010-03-03 9,100,000 2022-11-01 -900,000 12.6 -9.00% -0.75%
Marina Bay Suites 3 CENTRAL BOULEVARD 19-21 221 2013 99 years CCR 1 2056 4,407,000 2009-12-18 3,758,000 2022-11-07 -649,000 12.8 -14.73% -1.23%
Leonie Suites 21 LEONIE HILL 19-21 97 2006 99 years CCR 9 689 1,440,000 2007-10-29 1,138,888 2022-11-08 -301,112 15.0 -20.91% -1.55%
Orchard Scotts 7 ANTHONY ROAD 1-3 387 2007 99 years CCR 9 1873 3,400,000 2009-12-11 3,120,000 2022-11-07 -280,000 12.8 -8.24% -0.67%
OUE Twin Peaks 33 LEONIE HILL ROAD 10-12 462 2014 99 years CCR 9 570 1,553,200 2016-09-15 1,300,000 2022-11-17 -253,200 6.2 -16.30% -2.84%
Goodwood Residence 261 BUKIT TIMAH ROAD 1-3 210 2013 Freehold CCR 10 1485 3,398,000 2011-03-31 3,150,000 2022-11-22 -248,000 11.6 -7.30% -0.65%
Marina One Residences 23 MARINA WAY 7-9 1042 2018 99 years CCR 1 732 1842144 2019-06-07 1640000 2022-11-18 -202144 3.4 -10.97% -3.34%
Reflections At Keppel Bay 29 KEPPEL BAY VIEW 1-3 1129 2011 99 years RCR 4 1539 2,510,054 2011-11-02 2,330,000 2022-11-02 -180,054 11.0 -7.17% -0.67%
Pollen & Bleu 19 FARRER DRIVE 4-6 106 2017 99 years CCR 10 1141 2,315,400 2017-04-13 2,200,000 2022-11-11 -115,400 5.5 -4.98% -0.93%
Fulcrum 33 FORT ROAD 13-15 128 2016 Freehold RCR 15 474 1,132,364 2012-08-23 1,030,151 2022-11-25 -102,213 10.3 -9.03% -0.92%
Skysuites@Anson 8 ENGGOR STREET 37-39 360 2015 99 years CCR 2 667 1,420,200 2013-06-05 1,335,000 2022-11-21 -85,200 9.4 -6.00% -0.65%
Robin Suites 25 ROBIN ROAD 7-9 92 2015 Freehold CCR 10 463 1,070,000 2016-05-16 988,000 2022-11-04 -82,000 6.4 -7.66% -1.23%
Espada 48 ST. THOMAS WALK 22-24 232 2013 Freehold CCR 9 560 1305760 2010-06-22 1228000 2022-11-11 -77760 12.3 -5.96% -0.50%
Suites At Orchard 38 HANDY ROAD 4-6 118 2014 99 years CCR 9 613 1,276,880 2010-11-11 1,200,000 2022-11-16 -76,880 12.0 -6.02% -0.52%
Reflections At Keppel Bay 3 KEPPEL BAY VIEW 7-9 1129 2011 99 years RCR 4 1109 1,842,610 2017-10-17 1,780,000 2022-11-02 -62,610 5.0 -3.40% -0.69%
10 Shelford 10 SHELFORD ROAD 4-6 69 2014 Freehold CCR 11 839 1,209,600 2011-05-30 1,160,000 2022-11-11 -49,600 11.4 -4.10% -0.37%
One Dusun Residences 1 JALAN DUSUN 28-30 154 2017 Freehold RCR 12 797 1,322,700 2012-09-11 1,280,000 2022-11-18 -42,700 10.2 -3.23% -0.32%
Corals At Keppel Bay 1 KEPPEL BAY DRIVE 4-6 366 2016 99 years RCR 4 1303 2,588,100 2013-06-17 2,552,000 2022-11-14 -36,100 9.3 -1.39% -0.15%
The Glades 10 BEDOK RISE 7-9 726 2017 99 years OCR 16 624 1006200 2017-02-06 980000 2022-11-25 -26200 5.8 -2.60% -0.46%
Suites @ Topaz 3 TOPAZ ROAD 1-3 46 2013 Freehold RCR 12 473 678,910 2015-03-10 660,000 2022-11-04 -18,910 7.6 -2.79% -0.37%
Flamingo Valley 478 SIGLAP ROAD 1-3 393 2014 Freehold OCR 15 517 881,600 2014-08-20 865,000 2022-11-24 -16,600 8.3 -1.88% -0.23%
SeaHill 121 WEST COAST CRESCENT 19-21 338 2016 99 years OCR 5 528 789,575 2012-11-30 776,000 2022-11-17 -13,575 9.9 -1.72% -0.17%
V On Shenton 5A SHENTON WAY 16-18 510 2017 99 years CCR 1 441 957,000 2012-08-28 950,000 2022-11-02 -7,000 10.2 -0.73% -0.07%
Parc Sophia 10 ADIS ROAD 1-3 152 2013 Freehold CCR 9 474 900,000 2012-05-14 900,000 2022-11-10 0 10.4 0.00% 0.00%

 

Based on the list, here are several observations:

Biggest capital loss

The biggest capital loss of S$2.65m, was from a 3,412-square-foot (sqft) unit (4-bedroom penthouse) within the 4-6th floor range at Marina Collection, on the Southern Islands of Sentosa.

The seller bought the unit for S$7.7m in May 2010, and held it for 12.4 years before selling it for S$5.05m in November 2022. He had to contend with a 34.42% capital loss, or -3.34% annually.

Are no two holders the same?

Two District 9 property sellers – one at 70-unit CityVista Residences and another at 140-unit Helios Residences – suffered near-similar losses after buying their respective apartments one month apart and holding onto their properties for the same 15.3 years.

The former’s CityVista 2,626-sqft apartment was purchased for S$7.153m in 2007 while the latter’s Helios 1,313-sqft apartment was bought for S$3.058m in 2007.

Both properties were completed in 2011.

Both sellers sold their respective apartments in November 2022, just two days apart. The CityVista seller suffered a loss of S$1.953m (-27.3%), while the Helios seller lost S$1.565m (-33.9%).

Annualised, their losses are -2.06% and -2.67%, respectively.

Two sellers from Helios Residences sold at a capital loss in November. Having held their apartments for 14.9 and 15.3 years, their losses were -33.67% and -33.85%, respectively.

61% on the list held their property beyond 10 years

61% (17) of the 28 sellers held their properties between 10 and slightly over 15 years.

This group suffered losses from S$0 (breakeven) to S$2.65m (-34.42%). If we remove both extremes, the range is S$7,000 to S$2.02m. It is -0.73% to -33.85% in percentage terms.

The remaining 39% (11) held onto their properties between 3.4 to 9.9 years. They suffered losses from S$13,575 to S$253,200, or -1.72% to -16.3% percentage-wise.

It seems that those who sold earlier suffered less in capital losses.

Both a long-term and short-term seller share the same annualised loss

A seller from 1042-unit Marina One Residences held his 570-sqft unit for 3.4 years before selling it for a S$202,144 capital loss, or -10.97%.

His annualised loss was -3.34%.

The Marina Collection seller, who held onto his unit for 12.4 years, also saw an annualised loss of -3.34%.

In other words, from an annualised loss perspective, there is no distinction between whether you’ve held onto a property longer or shorter.

54% of sellers were from lower floor units (up to 9th floor)

54% (15) were from sub-10th floor units. Six were within the 1st-3rd floors, five from 4th-6th floors and four from the 7th-9th floors.

If we look at their capital losses, the range is between S$0 (breakeven) and S$2.65m. If we remove these extremes, it’s actually S$16,600 to S$280,000. In percentage terms, the range is -1.39% to -10.97%.

Their holding periods vary as well, from 3.4 years to 12.8 years.

For the 46% (13) living from the 10th floor upwards, their capital losses are from S$7,000 to S$2.02m. The range is between -0.73% and -33.85% in percentage terms.

Their holding periods are from 6.2 to 15.3 years.

It seems that sellers living on lower floors sold earlier than those living on higher floors.

Based on November’s data, sellers living on higher floors held onto their units longer than those who lived on lower floors.

Only 11% of sellers are from the OCR

Only 11%, or 3 sellers, are from the Outside of Central Region (OCR).

They are owners of smaller units (473 to 624 sqft apartments), registering smaller losses between S$14k to S$26k, or -1.72% to -2.6% in percentage terms. Annualised, the range is -0.17% to -0.46%.

Only one of the three units is freehold, the other two are on 99-year leases. Length-wise, they held their properties for 5.8 to 9.9 years.

The rest are from CCR (68%) and RCR (21%).

57% of sellers are 99-year leasehold owners

Finally, 16 sellers (57%) were owners of 99-year leasehold properties, while the remaining 12 (43%) were freehold property owners.

11 (58%) of the 19 sellers who owned properties in the CCR were 99-year leasehold units. The remaining 8 (42%) owned freeholds.

Based on the November list, the difference between leasehold and freehold units sold at a capital loss is small.


error: Content is protected !!