<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Sep 23, 2009
</TR><!-- headline one : start --><TR>'Flippers' hit in sub-sales <!--10 min-->
</TR><!-- headline one : end --><TR>They were caught out earlier this year when prices fell as awarding of projects' TOP neared </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Joyce Teo
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Most sellers made gains at Rivergate, which was completed in the first quarter of the year, but 10 suffered hefty losses. One 'flipper' took a massive hit of $985,000, with the average loser suffering red ink to the tune of $371,355. -- PHOTO: CAPITALAND
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<!-- START OF : div id="storytext"-->PROPERTY speculators have been in the firing line of late, but the hefty losses some suffered earlier this year suggest they might be deserving of some sympathy.
A number seem to have been caught out when prices fell as the awarding of a project's temporary occupation permit (TOP) neared.
Instead of flipping the property for a gain, some speculators were caught out and took a hit when they offloaded some of the popular sub-sale projects, according to Savills Singapore.
While the data showed that sub-sale deals typically rise in projects nearing completion, sellers may not always gain.
Take Casa Merah in Tanah Merah. There were 71 sub-sale deals done this year with 16 resulting in losses averaging $30,601. One seller suffered a loss of $142,790.
Most sellers made gains at Rivergate, which was completed in the first quarter of the year, but 10 suffered hefty losses. One 'flipper' took a massive hit of $985,000, with the average loser suffering red ink to the tune of $371,355.
At popular projects like The Sail @ Marina Bay, eight out of 19 sub-sale deals this year were done at an average loss of $949,343.
Regardless of market condition, prices may rise near completion time because people looking for immediate occupation will typically prefer to buy a brand-new home while tenants usually like to move into a new property, said Savills Residential director Phylicia Ang.
She added that this 'TOP effect' is more obvious in a rising market, and especially if the completed development turns out to be better than expected. But these factors did not apply earlier this year as the market was very weak, she said.
'Some people were selling earlier this year because they panicked. No one knew how the market would turn out,' said Cushman & Wakefield managing director Donald Han. It was the case with the new launches this year. Savills Singapore found that the sub-sale deals for the major and most popular projects launched this year nearly all closed at a profit.
Read the full story in Wednesday's edition of The Straits Times. [email protected]
</TR><!-- headline one : start --><TR>'Flippers' hit in sub-sales <!--10 min-->
</TR><!-- headline one : end --><TR>They were caught out earlier this year when prices fell as awarding of projects' TOP neared </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Joyce Teo
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Most sellers made gains at Rivergate, which was completed in the first quarter of the year, but 10 suffered hefty losses. One 'flipper' took a massive hit of $985,000, with the average loser suffering red ink to the tune of $371,355. -- PHOTO: CAPITALAND
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->PROPERTY speculators have been in the firing line of late, but the hefty losses some suffered earlier this year suggest they might be deserving of some sympathy.
A number seem to have been caught out when prices fell as the awarding of a project's temporary occupation permit (TOP) neared.
Instead of flipping the property for a gain, some speculators were caught out and took a hit when they offloaded some of the popular sub-sale projects, according to Savills Singapore.
While the data showed that sub-sale deals typically rise in projects nearing completion, sellers may not always gain.
Take Casa Merah in Tanah Merah. There were 71 sub-sale deals done this year with 16 resulting in losses averaging $30,601. One seller suffered a loss of $142,790.
Most sellers made gains at Rivergate, which was completed in the first quarter of the year, but 10 suffered hefty losses. One 'flipper' took a massive hit of $985,000, with the average loser suffering red ink to the tune of $371,355.
At popular projects like The Sail @ Marina Bay, eight out of 19 sub-sale deals this year were done at an average loss of $949,343.
Regardless of market condition, prices may rise near completion time because people looking for immediate occupation will typically prefer to buy a brand-new home while tenants usually like to move into a new property, said Savills Residential director Phylicia Ang.
She added that this 'TOP effect' is more obvious in a rising market, and especially if the completed development turns out to be better than expected. But these factors did not apply earlier this year as the market was very weak, she said.
'Some people were selling earlier this year because they panicked. No one knew how the market would turn out,' said Cushman & Wakefield managing director Donald Han. It was the case with the new launches this year. Savills Singapore found that the sub-sale deals for the major and most popular projects launched this year nearly all closed at a profit.
Read the full story in Wednesday's edition of The Straits Times. [email protected]
