Possible loss if sold now

The combined value of private and public homes in Singapore’s north-east is $396 million less today than when they were bought, a new report has found.

The report by SRX Property sought to calculate the “paper losses” faced by home owners across Singapore, given the recent slide in property prices.

Of the 7,619 Housing Board flats in Sengkang with caveats lodged historically, 46.9 per cent or 3,575 owners would suffer losses if they were to sell at today’s estimated market value, SRX Property said. This calculation is based on the price the owners paid for their homes.

The total amount of paper losses for HDB flats in the area is $164 million, SRX found.

Of the 3,730 HDB flats in Punggol with caveats lodged, 49.6 per cent or 1,849 owners would suffer losses if they sold at today’s value – a total paper loss of about $114 million.

As for private homes, out of 3,615 non-landed homes in Seletar, 43.7 per cent or 1,578 are looking at a paper loss totalling $118 million.

The top five projects in the district with the highest percentage of units with paper losses are The Topiary, Seletar Park Residences, Floraville, Riverbank@Fernvale and RiverTrees Residences, said SRX Property.

Some home owners bought in the north-eastern area intending to benefit from the Government’s development of the Seletar aerospace hub.

“As demand increased, prices increased. The cooling measures then hit before the market could normalise prices,” the report said.

“As a result, many people were caught holding overvalued homes as the market turned downwards. As prices have come down, an unusually high number of owners have entered into a paper loss.”

Another area where many private property owners are facing paper losses is District 1, including Marina Bay and Raffles Place, where 40 per cent or 1,347 of 3,383 owners would suffer losses if they sold their properties at today’s values.

In District 13, including MacPherson and Braddell, 38 per cent or 1,283 of 3,358 home owners are facing a paper loss.

District 26, including Upper Thomson and Mandai, fared the best in terms of the percentage of units facing losses. Just 9 per cent, or 203 of 2,302 home owners in the district, are in the red.

In the HDB segment, the town with the third highest percentage of units with paper losses is Sembawang, with 42 per cent or 1,458 of 3,445 units with a paper loss.

Values seem to have held up the best in Bishan, with only 19 per cent or 408 of 2,187 units facing a paper loss.

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Possible loss if sold now

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