The sellers of two separate private non-landed homes in prime District 10 reaped profits of more than $1 million each on Jan 11. The larger profit of $1.32 million accrued to a 2,034 sq ft unit at The Boulevard Residence; the smaller profit accrued to a unit at Grange Residences. The seller of The Boulevard Residence unit bought it at $1,515 psf from the developer in 2005 and sold it at $2,163 psf. This translates into a 43% gain, or 3% annually over a 12-year holding period.
The Boulevard Residence is a freehold development located near Orchard MRT station. It comprises 46 apartments and was completed in 2005. Prices at The Boulevard Residence peaked in 2007, when there were 12 transactions at an average of $2,911 psf. There were no transactions last year and the sole transaction in 2015 was at $2,409 psf. Monthly rent for three-bedroom units measuring between 2,000 and 2,100 sq ft at The Boulevard Residence averaged $8,571 in 2H2016.
The lowest psf price available for sale at The Boulevard Residence can be found at http://bit.ly/boulevardedge
Over at Grange Residences, the seller who reaped a $1.3 million profit bought the 2,852 sq ft unit at $2,454 psf in 2007 and sold it at $2,910 psf on Jan 11. This works out to a 19% profit, or 2% annually over 10 years. The same unit fetched a $2.75 million profit for a previous seller, who bought it from the developer at $1,490 psf in 2004.
Grange Residences is a freehold condo located near the upcoming Orchard Boulevard MRT station. It comprises 164 units and was completed in 2004. Prices at Grange Residences peaked in 2013 when three units were transacted at an average of $2,858 psf. In 2016, six units were transacted at an average of $2,336 psf. Monthly rent for four-bedroom units sized between 2,800 and 2,900 sq ft at Grange Residences averaged $14,718 in 2H2016.
A 2,852 sq ft unit at Grange Residences was sold for a $1.3 million profit on Jan 11
On Jan 12, another unit at Grange Residences was sold at a $730,000 loss. The seller bought the 2,669 sq ft unit at $2,840 psf in 2012 and sold it at $2,566 psf after a holding period that just crossed the four years stipulated under the seller’s stamp duty rules. The loss works out to 10%, or 2% annually. The same unit fetched profits for its two prior sellers. The first seller, who reaped a $4.12 million gain, bought it at $1,230 psf from the developer in 2004; the second seller made a $180,000, or 2%, profit in 2012.
Based on the matching of URA caveat data, there have been 103 profitable and seven unprofitable transactions at Grange Residences so far. The unprofitable transactions resulted in losses ranging between $100,000 and $800,000, or between 2% and 12%, for the sellers.
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This article appeared in The Edge Property Pullout, Issue 764 (Jan 30, 2017) of The Edge Singapore.