Where are the deals?

By The Edge Property

November 20, 2015 3:00 PM SGT

With a softening market, the number of properties for sale below market prices are likely to increase. Owners who have over-extended their financials during the peak might find it difficult to make their monthly mortgage payments when rents are declining. Rising interest rates will likely exacerbate the problem. Recently, we have also written articles on the increasing number of distressed sales for luxury condos and landed homes.

If you’re looking to bottom-pick and find these under-valued properties, where do you start? We attempt to help you narrow down your search process by analysing tens of thousands of properties for sale. We segregated apartments and condos into their respective districts and use The Edge Fair Value to assess the fair market prices (Note: The Edge Fair Value is an indicative value based on information provided by subject property, recent past transactions or adjusted listings of similar properties. The methodology is endorsed by professional licensed valuers). Properties with asking prices below 5% of the fair market values are categorised as ‘Deals’.

Table: Deals in the different districts for apartments & condos

		All Properties	Resale/Completed Properties
District	Key Towns	# of Properties For Sale	# of Deals	% of Deals	# of Properties For Sale	# of Deals	% of Deals
1	Marina, Raffles Place, Boat Quay	1,314	4	0%	462	3	1%
2	Anson Road, Chinatown, Tanjong Pagar	674	8	1%	209	-	-
3	Queenstown, Tiong Bahru, Commonwealth	1,466	30	2%	169	5	3%
4	Telok Blangah, Harbourfront, Sentosa	1,148	47	4%	436	9	2%
5	Clementi, Dover, Buona Vista	1,291	11	1%	282	3	1%
6	Beach Road, City Hall, Clarke Quay	6	-	-	-	-	-
7	Middle Road, Bugis, Beach Road	976	19	2%	87	4	5%
8	Little India, Farrer Park, Serangoon Road	565	-	-	192	-	-
9	Orchard Road, River Valley, Cairnhill	2,843	39	1%	961	5	1%
10	Tanglin, Farrer, Holland, Bukit Timah, Ardmore	3,517	83	2%	984	14	1%
11	Thomson, Novena, Newton	1,127	4	0%	485	4	1%
12	Serangoon, Toa Payoh, Balestier	1,235	18	1%	317	1	0%
13	Braddell, Macpherson, Potong Pasir	1,027	58	6%	55	-	-
14	Sims, Paya Lebar, Geylang	1,901	117	6%	291	13	4%
15	Marine Parade, Katong, Joo Chiat, East Coast	3,119	110	4%	1,042	67	6%
16	Kew Drive, Upper East Coast Road, Bedok	1,274	27	2%	424	5	1%
17	Flora, Loyang, Changi	550	2	0%	102	2	2%
18	Simei, Tampines, Pasir Ris	1,820	17	1%	406	3	1%
19	Hougang, Punggol, Sengkang, Serangoon Garden	4,789	265	6%	588	11	2%
20	Thomson, Ang Mo Kio, Bishan, Braddell	1,289	32	2%	192	15	8%
21	Upper Bukit Timah, Ulu Pandan, Clementi Park	635	15	2%	226	1	0%
22	Lakeside, Jurong, Boon Lay, Tuas	953	72	8%	187	2	1%
23	Choa Chu Kang, Bukit Batok, Bukit Panjang	1,640	56	3%	330	2	1%
24	Lim Chu Kang, Tengah	13	-	-	-	-	-
25	Kranji, Woodlands, Admiralty	781	56	7%	93	6	6%
26	Upper Thomson, Springleaf, Mandai	119	1	1%	62	1	2%
27	Sembawang, Yishun	1,836	88	5%	103	2	2%
28	Seletar, Yio Chu Kang	1,122	106	9%	36	-	0%
	Total	39,030	1,285	3%	8,721	178	2%

Overall, there are 1,285 ‘deals’ or properties listed at 5% below their fair market values. Out of these, 178 properties are in the resale market. Considering developers are beginning to reduce prices on new launches to move unsold units, it is not surprising that majority of these are for projects that have yet to be completed. For example, the highest proportion of deals is in District 28 around Ang Mo Kio & Yio Chu Kang. Zooming in, it appears a substantial concentration of deals are in the Floraville development, a 50-unit freehold project with an average pricing of $1,410 psf. An analysis of district 19, the district with the most number of deals, provides the same conclusion – majority of these are located at La Fiesta and The Vales, projects that are still under construction.

Although a significant number of deals come from new projects, hidden gems can also be found in the resale/secondary market. In district 10 around Holland and Bukit Timah for instance, there are 14 deals in the resale market, where deals can be found in projects such as The Rochester, Duchess Residences and The Marq.

Bargain hunting can be a frustrating experience, with lack of systematic and transparent information hampering the search process. Knowing where the deals are would be a good start.

Want to find more hidden gems? Start the discovery using our intuitive map-search

As we are not party to the contract between the client and agent, we are not able to verify information provided by the agent.

Tags: