A completed and occupied condo is indicated by a temporary occupation permit (TOP). So, now for the crucial decision: Should you sell before or after reaching this benchmark?
Analysis: How Prices Move Before and After TOP
First, let’s look at two projects: One finished prior to COVID-19 and the other following it. Prices at Seaside Residences and Botanique at Bartley have increased over time, particularly after TOP. The pandemic caused a brief slowdown, but prices eventually kept rising.
This pattern indicates that prices typically rise following completion. However, is it always more profitable to sell after TOP? We compared the average sales profits and losses before and after TOP in order to obtain a more accurate picture.
Profitability Analysis: CCR, RCR, and OCR
According to our data, 82% of buyers in the Core Central Region (CCR), 97% in the Rest of Central Region (RCR), and 99% in the Outside Central Region (OCR) choose to sell their condos before TOP.
It’s interesting to note that regardless of whether the sale takes place before or after TOP, properties in the CCR are more likely to be unprofitable transactions than properties in the RCR and OCR.
Better yearly returns are indicated by the 0.5% increase in the annualized capital gain, even though selling before TOP may result in slightly smaller profits (by about $15,000).
District Performance: Best and Worst
In terms of district-level performance, District 18 does poorly, with annualized losses of -4.25%, while District 23 performs impressively with an 8% average annual return on New Sale to Sub-Sale transactions.
Specific Project Performance
The outcomes differ for particular projects. Remarkable returns of more than 20% were produced by a few top performers, such as Jadescape and Whistler Grand. For most projects, though, there aren’t any appreciable differences between selling before and after TOP.
In the end, your circumstances and the particular project will determine whether you sell before or after TOP. Waiting may be advantageous for high-end new releases. When it comes to mass-market properties, timing is more important, so, it might make sense to sell before TOP.
Remember that a variety of factors, including market conditions and seller’s stamp duty (SSD), come into play. Holding power becomes increasingly important as real estate values increase more slowly. If need be, be ready to hang onto your property for a longer period of time.
