Your search results

Great Reasons for Condo Owners to Sell upon Reaching TOP – A Guide to Sub-Sale Transactions

Posted by Jayson Ang on August 17, 2023

| 0

TLDR

A recent sub-sale transaction in Midtown Modern set a new record with a 2-bedroom home selling at $3,150 psf. Selling before TOP can lead to substantial profits, even after paying the Seller Stamp Duty. Avoid paying 25% in the progressive payment plan by selling your Option to Purchase before TOP. Properties like Sky Everton, Treasure at Tampines, and The Florence Residences have seen significant increases in their psf prices for resale transactions. The demand for condos near TOP is high due to newer units in better condition, reducing the need for renovations. Consider collaborating with a real estate expert like Jayson Ang to market your sub-sale property effectively. Buyers should weigh their options carefully and seek expert advice before making decisions in the current real estate market landscape.

A new record for the highest price per square foot for a 2-bedroom home in Midtown Modern was set at $3,150 psf.

The property was sold for $2,000,000, even though it only measures 635 sq ft.

This sale is considered a sub-sale, which means that the condo unit was bought from the developer and sold to another buyer before completion.

The seller purchased the property originally for $1.744 million in 2021 and had to pay a 4% Seller Stamp Duty (SSD) due to buying it between 2-3 years ago.

The SSD rate is 12% in the first year, 8% in the second year, and 4% in the third year after the purchase date.

Despite paying the tax, the seller still made a profit of over $170k.

If you bought a condo unit with the intention of selling it when the development is completed, then you should definitely consider doing the same thing.

Additionally, if you received an early bird discount when purchasing the unit, it may be enough to cover the 4% SSD. This way, you can use your gains for your next home purchase.

Avoid paying 25% in the progressive payment plan before TOP

Developers offer appealing payment plans that require an additional 25% payment upon completion of a property, known as TOP.

To avoid this payment, buyers can sell their Option to Purchase before the TOP deadline.

To identify condos that are suitable for selling before TOP, we will focus on fully sold out properties that are expected to be ready in 2023.

Sky Everton
Treasure at Tampines
The Florence Residences
View at Kismis
Jervois Prive
Cairnhill 16
Urban Treasures
Parc Clematis
The Verandah Residences

Prospective buyers who missed out on the opportunity to reserve a unit in any of these recent property launches will now have the chance to acquire their desired condominium.

However, since there are no more untaken units available directly from the developer, they can purchase from current homeowners.

Sell at a Increased Higher PSF Pricing

These properties have experienced notable increases in their per square foot (psf) prices for resale transactions.

For instance, Treasure at Tampines was initially sold at approximately $1,400 psf but has been selling at an average of approximately $1,600 psf over the last three months.

Please note that the recorded transactions for Sky Everton were limited to only 2-3 and do not provide a comprehensive reflection of the overall market’s price growth.

Huge Demand For Condos Nearer To TOP

This is a positive sign that there is a high demand for newly-built condos that are ready for occupancy and located near the top of the building.

Buyers are willing to pay more for these types of units. Sub-sale units are generally newer and in better condition than resale condos, requiring less renovation or upgrades.

This means that buyers can move in immediately without having to spend extra money on renovations.

Those who do not want to wait for a new condo to be completed or spend money on renovations with a resale unit may be more interested in purchasing a sub-sale unit, even if it comes at a higher price.

Collaborate With Me To Market Your Sub-Sale Property At An Unprecedented Value!

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Buying Tips

5 Reasons To Invest In UK Property In 2024 Instead Of Saving

Jayson Ang – February 8, 2024 –

TLDR Investing in UK property in 2024 offers significant advantages over saving due to the potential for long-term value growth,...

All Buying Tips

Transforming Your Home Loan Situation with Rate Cuts

Jayson Ang – September 6, 2024 –

TLDR When comparing fixed and floating mortgage rates, the present fixed rate of 3% is favorable, but predictions hint at...

All Buying Tips

What Type of Properties Can a Permanent Resident PR Buy in Singapore?

Jayson Ang – August 13, 2023 –

TLDR When it comes to purchasing property in Singapore as a Permanent Resident or Foreign National, there are specific restrictions...

All Blog Posts Buying Tips Opinion

Freehold Properties vs Leasehold Properties: Which is Better?

Jayson Ang – June 26, 2023 –

TLDR When it comes to property investments in Singapore, understanding the differences between leasehold and freehold properties is crucial. This...

All Opinion

Singapore’s Property Market: Will the Newly Proposed 2023 Cooling Measures, Including a 60% Foreigner ABSD, Make Waves or Mere Ripples?

Jayson Ang – April 27, 2023 –

TLDR The recent surge in Additional Buyer's Stamp Duty (ABSD) rates in Singapore targets mainly foreigners and entities, with rates...

Mandarin Top 5

The Top 5 Reasons To Invest In Singapore Property

Jayson Ang – August 13, 2024 –

Singapore, a small island nation with a thriving economy, has long been considered an attractive destination for property investment. The...

All Blog Posts Buying Tips

Will Your HDB Flat Provide For Your Retirement?

Jayson Ang – July 11, 2023 –

TLDR Singapore's property market presents challenges with high prices, particularly in private housing, while public housing remains relatively more affordable....

All Buying Tips

Downpayment For Condo: How Much Do First-Timers Need In Singapore?

Jayson Ang – March 12, 2024 –

TLDR The blog post delves into the complexities of condo downpayments in Singapore in light of the impact of Covid-19...

All Blog Posts Opinion

5 Reasons Why You Should Consider Hiring an Agent Instead of DIY-ing It

Jayson Ang – June 9, 2023 –

TLDR Understanding the complexities of the real estate market and transactions can be overwhelming. Enlisting the help of a real...

All Blog Posts Buying Tips

The Quick Guide For Buying Landed Property In Singapore

Jayson Ang – January 2, 2023 –

TLDR When it comes to purchasing a landed property in Singapore, there are three main types to consider: terrace houses,...

Buying Tips Mandarin Top 5

Singapore Living: 5 Must-Know Factors for Choosing the Perfect Neighborhood

Jayson Ang – June 30, 2023 –

Singapore Living: 5 Must-Know Factors for Choosing the Perfect Neighborhood When it comes to purchasing a property in Singapore, the...

All Buying Tips

What Are The Key Factors That Contribute To Property Valuations And Why Are They So Crucial?

Jayson Ang – October 23, 2023 –

TLDR Understanding property valuations is crucial for both buyers and sellers in the real estate market. Property valuations involve two...

All Buying Tips Opinion

The Significance of Choosing the Right Condo: A Real-Life Tale of Two $1.8 Million Investments with Significantly Different Results.

Jayson Ang – August 13, 2024 –

TLDR When contemplating property investments in Singapore, consider various factors like rental performance, unit count, access to train lines, and...