Wednesday, March 28, 2012

Shoebox units feature in last year's subsales

Business Times: Wed, Mar 28
SHOEBOX apartments seem to have fared better in the subsale market than their larger counterparts last year even after taking into account the seller's stamp duty (SSD).


A Savills study showed a total of 115 subsales for private apartments and condos in 2011 which involved payment of SSD. Of these, about 41 per cent or 47 units were up to 500 sq ft, a widely used definition of shoebox apartments.


Compared with units above 500 sq ft, a higher percentage of subsales involving shoebox units still made a profit after factoring in SSD. And their average percentage gain per unit was also higher.


Savills' analysis showed that of the 115 non-landed private homes that changed hands in the subsale market last year which incurred SSD, 47 were shoebox units, and of these, 95.7 per cent were in the black. This is higher than the 85.3 per cent of the 68 units above 500 sq ft that made a profit.


Among the profitable shoebox units, the average gain per unit was 18.9 per cent, higher than a return of around 13 per cent for bigger units.


URA Realis caveats database captured 2,619 subsales for non-landed private homes last year, for which Savills traced caveats for earlier purchases of 2,337 units...

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Martin Koh/ Sherry Tang
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