One in five prime-region private home resale deals sold at a loss in Q3 - The Business Times

Share of loss-making deals edges up to 4.6%, highest in four years, ECs post biggest percentage gains

[SINGAPORE] Nearly one in five private homes resold in Singapore’s prime location market ended in a loss in the third quarter, even as the vast majority of sellers across the island stayed in the black.

Islandwide, the share of loss-making deals crept up to 4.6 per cent in Q3, from 3.7 per cent in the previous quarter and 3.3 per cent a year earlier, data compiled for The Business Times by real estate consultancy Cushman & Wakefield (C&W) showed.

This was the highest proportion since the last highwater mark in Q2 2022, when 6.9 per cent of resale transactions were made at a loss.

C&W studied caveats for private homes with a prior purchase history within the preceding 10 years – over 40 quarters – that were transacted in Q3 2026. Of the 2,021 matched transactions, 93 were sold at a loss, or roughly one in 22 deals.

The Core Central Region (CCR) accounted for half – 49 per cent – of all loss-making transactions, with 19.5 per cent of deals in the submarket ending in the red. This was slightly higher than the previous quarter’s 17.7 per cent.

In comparison, loss-making transactions accounted for 4.5 per cent of deals done in the Rest of Central Region (RCR), up from 2.7 per cent. In the suburban Outside Central Region (OCR), the tally edged up to 1.6 per cent from 1.3 per cent in Q2.

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The RCR accounted for 30 per cent of all loss-making deals and the OCR at 20 per cent.

The five biggest loss-making non-landed transactions by both percentage and quantum were for 99-year leasehold properties in the CCR, C&W’s analysis showed.

The steepest percentage loss was recorded at Marina One Residences, where a 710 square foot (sq ft) unit was sold for S$1.25 million in August, about 32 per cent less than the S$1.83 million it was purchased at in July 2018.

Over a holding period of 8.1 years, this translated to an annualised loss of 4.6 per cent.

By dollar quantum, the heaviest hit was an OUE Twin Peaks unit, where a 1,604 sq ft unit was sold for S$3.88 million in August.

The seller had bought the unit for S$4.9 million in March 2017 – taking a gross loss of about S$1 million or 20 per cent, which worked out to an annualised loss of 2.4 per cent over a holding period of about 9.4 years.

Overall, profit margins continued to shrink. The median gain among profitable resale and sub-sale transactions fell to 24.8 per cent in Q3, from a peak of 30.4 per cent in Q2 2025. 

Wong Xian Yang, C&W’s head of research for Singapore and South-east Asia, said: “With overall private residential prices at their historical highs coupled with current global macroeconomic uncertainty, buyers are expected to be more selective and future resale performance would vary more widely across developments.”

At the same time, three of the top five most profitable deals by quantum in Q3 were for CCR properties.

By dollar quantum, the biggest gainer was a Leedon Residence unit. A 4,704 sq ft unit changed hands for S$14.3 million in July, earning the seller a profit of S$3.75 million over the 2017 purchase price of S$10.55 million.

The gain of 35.5 per cent translated to an annualised return of 3.3 per cent over a holding period of 9.5 years.

All five biggest profit-making transactions by quantum were in freehold developments, which Wong said “tend to command a premium”.

Against the weaker showing in prime districts, executive condominiums (ECs) delivered the quarter’s biggest windfalls, again dominating the rankings of the most profitable resale deals by percentage.

All five top transactions were at Hundred Palms Residences in the OCR, with gains ranging from 138.9 to 163.9 per cent over holding periods of around nine years.

The biggest percentage gain came from a 1,055 sq ft unit sold for S$2.26 million in September.

The seller had bought it for S$860,000 in July 2017, making a profit of about S$1.4 million. That represented a gain of 163.9 per cent, or an annualised return of 11.2 per cent over 9.2 years.

Excluding ECs, the five biggest percentage gainers recorded profits of between 83.9 and 88.1 per cent, with four of the five units in freehold developments.

Topping the list was a 1,410 sq ft unit at freehold condominium The Sea View in the RCR.

It was sold for S$4.1 million in September, about 10 years after it was bought for S$2.18 million in October 2016. The seller made a gain of 88.1 per cent, or 6.5 per cent on an annualised return basis.

C&W’s analysis excludes transaction costs and taxes such as buyer’s and seller’s stamp duties.

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