Subsale Condo Market Surged in 2024, With Sellers Earning Average Profit of $270,000: OrangeTee
Singapore’s subsale condominium market saw a sharp upswing in 2024, with sellers making an average profit of around $270,000 per transaction, according to data from OrangeTee Group.
Subsales—where owners sell a property before its completion—accounted for 6.6 per cent of all non-landed property transactions last year, with 1,306 units changing hands. That marks a significant increase from just 178 subsale transactions recorded in 2020. The surge came as sellers capitalised on a robust price growth of about 33.4 per cent in the private residential market between 2020 and 2024, as reported by the Urban Redevelopment Authority (URA).
Although activity increased, subsale volumes remain well below the peak of 4,863 transactions recorded in 2007, the highest level since data collection began in 1996.
Condominiums in suburban areas were the most active, contributing to 57.8 per cent of subsales, or 755 units. City fringe developments followed with 38.4 per cent, or 502 units, while prime districts accounted for just 3.8 per cent, or 49 units.
Top-performing projects included The Florence Residences (159 subsales), Parc Clematis (133), Affinity at Serangoon (120), and Penrose (100).
OrangeTee’s study of subsale profitability was based on URA caveats for new sales from 2019 to 2024, matched with their respective subsale records. Costs like stamp duties, legal fees, and interest were not factored into the profit estimates.
The data revealed that 99.3 per cent of 2,361 subsale transactions—amounting to 2,344 units—were profitable before including seller’s stamp duty (SSD). Only 17 transactions were unprofitable, with average losses around $90,000. Sellers can avoid SSD by holding their property for more than three years. For those who sell within three years, the SSD can be as high as 12 per cent.
The three most profitable subsales were in the luxury Boulevard 88 development in the prime district. One seller made a profit of $3.9 million after buying a 2,800 sq ft unit for $10.1 million in 2019 and selling it for $14 million in 2023.
On the other end of the scale, loss-making transactions included units at Riviere and Sky Everton, where sellers incurred losses of $297,600 and $132,000, respectively, after offloading within two to three years of purchase. A unit at Seaside Residences was sold just one year after purchase, resulting in a $120,000 loss.
Of the 17 unprofitable subsales, eight were made before the SSD period expired, with owners possibly under financial strain or requiring urgent liquidity, said OrangeTee’s chief researcher Christine Sun.
Despite these outliers, most sellers saw gains, and more owners with shorter holding periods opted to exit the market in 2024. Data from Cushman & Wakefield shows that the number of non-landed transactions involving homes held for five years or less rose to 3,750 in 2024, up from 1,010 in 2020. These quick turnaround deals accounted for 34.8 per cent of secondary sales with prior purchase history, up from 23.9 per cent four years earlier.
The median profit from these short-hold sales also rose sharply, increasing by 17.9 per cent to $290,000 in 2024—more than double the $114,125 seen in 2020.
Cushman & Wakefield’s head of research, Wong Xian Yang, noted that some sellers may choose to cash out early to avoid rental hassles or to realise gains amid market uncertainty.
Looking ahead, subsale activity could remain firm in 2025 as more sellers seek to lock in profits amid economic volatility. However, ERA Singapore’s key executive officer Eugene Lim expects the trend to moderate gradually. New home completions are projected to normalise by 2028, potentially easing the pace of subsale transactions.
In 2023, 19,968 private residential units (excluding executive condominiums) were completed—the highest since 2016. Another 8,460 units were delivered in 2024, with 2025 expected to see around 5,846 new completions.
