Just last week, a new record price was set by Ohmyhome for the highest psf for a 2-bedroom home in Midtown Modern at $3,150 psf. That’s a $2,000,000 sale price for the 635 sq ft property. This is a sub-sale, which refers to a condo unit that was purchased from the developer and sold to another homebuyer before completion.
The seller originally purchased this property for $1.744 million in 2021 and had to pay a 4% Seller Stamp Duty (SSD) due to having only purchased this between 2-3 years ago. The SSD is 12% in the 1st year, 8% in the 2nd year, and 4% in the 3rd year of the purchase date.
But even after paying the tax, the unit remained profitable — pocketing over $170k in profit.
Should other condo owners do the same?
The obvious answer is “Yes!”, especially if you purchased a condo unit with the intention of taking advantage of its lower price at launch and selling when the development is completed.
Also, if you bought a condo unit early and received an early bird discount, it may be enough to cover the 4% SSD. So you’re free to use your gains for your next home purchase.
Avoid paying 25% in the progressive payment plan before TOP
Due to the attractive progressive payment plans offered by developers, many are due to pay another 25% upon TOP, which they can avoid by selling the Option to Purchase before that date is met.
To narrow down the condos that are prime to sell before TOP, we are looking at condos that are fully sold out and will be completed in 2023:
- Sky Everton
- Treasure at Tampines
- The Florence Residences
- View at Kismis
- Jervois Prive
- Cairnhill 16
- Urban Treasures
- Parc Clematis
- The Verandah Residences
Buyers who didn’t get a chance to book a unit for any of these new launches will finally get a chance to get the condo of their dreams and, as there are no more available units to be purchased from the developer directly, buy it from an existing homeowner.
Sell at a significantly higher PSF price
These developments have actually recorded significant growth in psf prices for sub-sale transactions. Take Treasure at Tampines for example, which was priced at about $1.4k psf at launch and has been selling at an average of about $1.6k in the past 3 months. (Do note that for Sky Everton, there were only 2-3 recorded transactions and therefore, it does not reflect the overall price growth we see in the market.)
|Project Name||New Sale PSF||Past 3 months Average PSF|
(Mar 23 – May 23)
|TREASURE AT TAMPINES||$ 1,369.66||$ 1,612.36||18%|
|PARC CLEMATIS||$ 1,642.83||$ 1,933.47||18%|
|VIEW AT KISMIS||$ 1,708.70||$ 1,960.50||15%|
|THE FLORENCE RESIDENCES||$ 1,561.96||$ 1,778.30||14%|
|JERVOIS PRIVE||$ 2,879.83||$ 3,220.00||12%|
|URBAN TREASURES||$ 1,940.78||$ 2,043.86||5%|
|THE VERANDAH RESIDENCES||$ 1,817.80||$ 1,871.00||3%|
|CAIRNHILL 16||$ 2,791.40||$ 2,883.29||3%|
|SKY EVERTON||$ 2,605.00||$ 2,516.00||-3%|
So, if you have bought a unit at any of these new launch projects, it’s still a good time for you to sell your unit now. Because if these sub-sale transactions are any indication, you will be selling at a profit too, which should be enough to cover the SSD.
Strong demand for condos nearing TOP
It’s also a good indication of the strong demand for move-in-ready condo units that are close to TOP, and that buyers are willing to pay more for such units. Compared to resale condos, sub-sale units are much newer and are in better condition, requiring less renovation or upgrades. So not only is it ready for move immediate move-in, buyers will also be saving on renovation; those who are not willing to wait for a new launch to be completed or spend on renovation with a resale condo may be more inclined to purchase a sub-sale unit, even at a higher price.
Partner up with the team who can sell your sub-sale unit at a new record price!
Don’t miss out on this golden opportunity to make a profit and speak to our new launch specialist agents today. Drop us a message on WhatsApp or on our Live Chat, at the bottom, right-hand corner of the screen.