A Profitable Shift in Subsales

SINGAPORE – The subsales market in 2024 has seen a remarkable boom as savvy sellers capitalize on soaring prices, netting an impressive average profit of around $270,000, according to data from OrangeTee Group. With condominiums often taking three to four years to complete, the pandemic has led to significant project delays, prompting many to cash out before their units were finished.

Subsales: A Growing Trend

Subsales have skyrocketed, making up 6.6% of overall non-landed sales in 2024, with 1,306 transactions compared to just 178 in 2020. However, this still falls short of the historical high of 4,863 subsale transactions recorded in 2007.

Where Are Buyers Turning?

In 2024, suburban condominiums dominated the subsale landscape, accounting for 57.8% of transactions (755 units), while properties on the city fringe followed at 38.4% (502 units). Only 3.8% (49 units) came from prime districts.

Top Subsale Projects of 2024

Some hot properties included The Florence Residences in Hougang, leading with 159 subsales, followed closely by Parc Clematis in Clementi (133), Affinity at Serangoon (120), and Penrose in Aljunied (100).

Profits and Pitfalls

OrangeTee’s profitability study revealed that a staggering 99.3% of the 2,361 subsale transactions from 2019 to 2024 were profitable, averaging gains of $270,000. Only 17 deals resulted in losses, with an average deficit of $90,000.

Prime Profits and Notable Losses

Among the biggest wins were three sellers at Boulevard 88, enjoying profits ranging from $3.1 million to $3.9 million. The crown goes to a seller who bought a unit for $10.1 million in March 2019 and sold it for $14 million in April 2023—a stunning profit of $3.9 million!

However, not all sellers were fortunate. Some losses were noted in city fringe projects like Riviere and Sky Everton, with sellers taking hits of $297,600 and $132,000, respectively. One seller at Seaside Residences lost $120,000 after just one year.

The Future Outlook

Despite the profiting frenzy, analysts predict a moderation in subsale transactions moving forward as new home completions are set to normalize by 2028. In 2023 alone, 19,968 private residential units were completed, with another 8,460 in 2024.

As uncertainty looms in the global economy, many property owners may continue to cash out on their investments. With the median profit from recent transactions climbing to $290,000 from $246,000 in the previous year, the market is ripe for profit-seeking sellers.

Key Takeaway

As we dive into 2025, subsales are expected to remain a significant force in the market, proving that amidst challenges, opportunities abound for those ready to make their move.