According to recent data analysis done, subsale volumes in private property have reached a 10-year high in 2022.
Subsale transactions are done usually at the end of the 3 years seller stamp duty SSD mark and before the project completed/TOP, before keys collections.
Because of covid, the building construction has a longer runway of 4-5 years and the 3 years SSD starts from the date of purchase.
This resulted a market of subsale transactions happening, some projects will be like Affinity at Serangoon, Treasures Tampines and Florence Residences.
In fact, the vast majority of sub-sale transactions recorded last year were profitable, with sellers earning an average profit of S$373,230.
The highest average annualized profit was found in the suburbs (OCR), at 4.6%, while subsales in the prime CCR made an average profit of S$707,640 because of its higher quantum.
While current subsale levels are nowhere near their peak of 4,862 transactions in 2007, the rising numbers point to a return of trading momentum in a market where buying activity has been dampened by cooling measures.
In 2022, the bulk of sub-sale transactions were found in the outside central region (OCR) and the rest of central region (RCR).
While the number of sub-sale transactions may start to taper off in the coming year, I’m optimistic about the overall future growth.
As always, if you have any questions or want to discuss more about your real estate needs, please feel free to reach out.