Resale of large units in prime districts see profit widen

12/06/2017

The top three most profitable deals in the week of May 9 to 16 were in prime Districts 9 and 10, and they were for big, four-bedroom units in older developments. The most profitable deal was the sale of a 2,540 sq ft, four-bedroom unit at Leonie Gardens in prime District 9. The sixth-floor unit was sold for $3.2 million ($1,260 psf), according to a caveat lodged on May 11. The previous owner purchased the unit for $1.9 million ($748 psf) in September 2006, which translates to a gain of 68% over a holding period of almost 11 years, or an annualised gain of 5% a year.

The 138-unit Leonie Gardens is a 99-year leasehold condominium completed in 1993. The Leonie Hill neighbourhood has a mix of new and old developments. New projects include the 462-unit OUE Twin Peaks, a 99-year leasehold development completed in February 2015, and a redevelopment of the former Grangeford. Targeted for launch in 2H2017 is the 124-unit New Futura by City Developments. The freehold condo tower is a redevelopment of the former Futura project.

Older developments in the Leonie Hill neighbourhood include the 210-unit Horizon Towers next door, which is also a 99-year leasehold development completed in 1984. Across the road is the freehold Leonie Towers, a 24-storey apartment block with 92 units completed in 1975. Leonie Gardens is within walking distance of the upcoming Great World MRT station on the Thomson-East Coast Line.

A 2,540 sq ft, four-bedroom unit at Leonie Gardens fetched the week’s biggest profit of $1.3 million. Find the most affordable listing in the project at bit.ly/LeonieGardensEdge

The second most profitable deal in the week was for a 1,894 sq ft, four-bedroom unit at RiverGate that fetched $3.8 million ($2,006 psf), based on a caveat lodged on May 16. The previous owner paid $2.5 million ($1,330 psf) for the unit in a sub-sale in April 2009. He recognised a gain of 51% or 5% a year over the past eight years.

However, the seventh-floor unit at RiverGate had been transacted twice prior to this. In a sub-sale in September 2006, it fetched $2.35 million ($1,240 psf). And in September 2005, the unit was bought from the developer for $1.94 million ($1,024 psf).

RiverGate is a prime, freehold landmark development with 545 units in three 43-storey towers fronting the Singapore River. Completed in 2009, the project is within walking distance of two upcoming MRT stations on the Thomson-East Coast Line, Havelock and Great World. It is also near the Robertson Quay area, which has become a lifestyle hub with a mix of restaurants, bars, retail, hotels and serviced apartments.

The third most profitable deal for the week was the sale of a 2,702 sq ft, four-bedroom unit at D’Grove Villas, a boutique 45-unit condo completed in 1992. The freehold development is located at a cul-de-sac off Orange Grove Road. The unit on the sixth floor of the 20-storey tower fetched $4.5 million ($1,666 psf), according to a caveat lodged on May 11. This was $1 million higher than the $3.5 million ($1,295 psf) that the previous owner paid for the unit in April 1997. The gain of 29% over the past two decades translates to an annualised gain of just 1% a year.

A further sign that the property market is recovering is that the losses registered in the resale market have been pared. For instance, the biggest loss in the week of May 9 to 16 was for the sale of a 1,475 sq ft, three-bedroom unit on the second level of The Glyndebourne in prime District 11. The unit changed hands for $2.8 million ($1,899 psf) on May 11 — $365,000 below the original purchase price of $3.17 million ($2,146 psf) in December 2010.

Completed in 2013, the 150-unit freehold condo on Trevose Crescent is next to Raffles Town Club and within walking distance of the Stevens MRT station on the Downtown Line.

At Chiltern Park on Serangoon Avenue 3, near the Lorong Chuan MRT station, a two-bedroom unit on the third floor changed hands for $831,888 ($909 psf), according to a caveat lodged on May 16. The unit last changed hands for $1.05 million ($1,148 psf) in April 2013. This translates to a loss of $218,112, excluding the 8% seller’s stamp duty of $66,551.

A 1,475 sq ft, three-bedroom unit at The Glyndebourne was sold at a $365,200 loss. Find the most affordable listing in the project at bit.ly/TheGlyndebourneEdge

The third loss-making deal of the week was for a 1,270 sq ft, three-bedroom unit on the 31st floor of the 36-storey Arc at Draycott. The boutique, freehold condo tower contains just 58 units. The transacted unit changed hands for $2.9 million ($2,283 psf), about $200,000 below the original purchase price of $3.1 million ($2,441 psf) six years ago.


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