5 worst performers in the best performing period of the property sector

Prices rose by more than 50% in the last five years but there are some who failed to ride with the tide.

According to Square Foot Research, from 1q2007 to 1Q2012, non‐landed property prices in the Core Central Region (CCR) rose by a more moderate 37.5% over the same period, compared to that in the Rest of Central Region (RCR) and the Outside of Central Region (OCR), which rose 50.8% and 68.3%, respectively.

Of course, each property within the same segment would have performed differently as well over the
same 5‐year period from 1Q 2007 to 1Q 2012.

Here's from Square Fooot Research

As we would expect following how the indices performed for the three segments, the top 5 performers were located outside of the CCR and the bottom 5 performers were located within the CCR. Among the bottom 5, St Regis Residences Singapore, actually registered a fall in capital value by 16.2% (about 3%
annually) from an average value of $2,671psf in 1Q 2007 to $2,237psf in 1Q 2012. Sherwood Tower, a
residential block within Bukit Timah Plaza, tops the chart with a capital value appreciation of 174.8%
(22.4% annually). Interestingly, Summerdale, an Executive Condominium, appeared in top 5 with a gain of 125.9% (17.7% annually).

While the high‐end may be a laggard in the past 5
years, its more moderate price appreciation is fully supported by a proportionate increase in its rental
rates, and the mass market rally has given the segment a new price support. Supply in the high‐end
is limited. The subdued en bloc market helps limit the supply to just what it is today. The mass market, on
the other hand, is being inflated with new supply from the Government Land Sales (GLS) programme.  

In addition, the high‐end segment is attractive from the point of view of its replacement cost. The average price for a non‐landed property in the outskirts stood at about $990psf in 1Q 2012 while land costs average at $450psf ppr, i.e. the selling price is more than twice its cost of land. On the other hand, the average price for non‐landed properties in districts 9 to 11 stood at about $1,800psf in 1Q 2012, just about what a site within the three prime districts would sell for, in our opinion.

Top and worst performers are the following: