Top 5 most unprofitable property developments in 1H2012

Profitability of property developers declined to a 3‐year low of $2.7b in 1H2012.

According to Square Foot Research, the most profitable half‐year was in 1H2011, where private residential property owners pocketed more than $4.0b in gross profits. Profitability has since declined to $3.2b in 2H2011 (‐22%) and subsequently to a 3‐year low of $2.7b in 1H2012 (‐14%).

Here's more from Square Foot Research:

The number of unprofitable transactions in the secondary market hit a low of 78 in 2H2011. In percentage terms, only 1 out of 100 transactions was unprofitable. In 1H2012, the number increased slightly to 99. In percentage terms, 2 out of 100 transactions were unprofitable.


Although profitability in the secondary market has declined from its peak, average profitability per transaction in the secondary market recorded a new high of $522,056 in 1H2012, a nearly two‐fold jump from $288,991 in 2H2009.

However, the growth in average profitability is notably slowing down.

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