A 614 sq ft, one-bedroom unit at Southbank — a 197-unit, 99-year leasehold project near Kallang River — changed hands at a profit of $608,000 on Aug 30. The unit went for $1,614 psf, or $990,000, more than double the $623 psf the seller paid to the developer in June 2006. The annualised gain for the transaction works out to be 10%.
A 614 sq ft, one-bedroom unit at Southbank went for $1,614 psf, or $990,000,
more than double the $623 psf the seller paid to the developer in June 2006
Nine out of the 10 most profitable non-landed homes transacted in the week of Aug 30 to Sept 6 had holding periods of at least 10 years. The most profitable deal accrued to a 2,885 sq ft luxury condominium unit at Ardmore Park, which fetched a profit of $3.3 million for the seller on Sept 5. The seller, who had purchased the unit from the developer at $1,695 psf in August 1996, had held the unit for 20 years before reselling it at $2,843 psf, or $8.2 million. The annualised gain works out to be 3%.
Separately, two other condo units garnered profits of more than $1 million each for their sellers on the same day. The bigger profit of $1.2 million was from a 1,356 sq ft unit at The Imperial, a freehold condo project comprising 187 units in prime District 9. The unit, which was previously purchased in a sub-sale for $1,054 psf, was held for 10 years before it was resold at $1,954 psf on Sept 5. This translates into an annualised gain of 6%.
The smaller profit of $1.1 million accrued to a 2,637 sq ft, four-bedroom unit at The Sovereign, an 87-unit freehold condo development on Meyer Road that overlooks East Coast Park. The seller purchased the unit in June 2009 at $910 psf and resold it at $1,342 psf on Sept 5, reflecting an annualised gain of 6%.
The biggest loss sustained in the week was from a 1,281 sq ft unit at Lush on Holland Hill, a freehold condo project off Holland Road in prime District 10. The transaction, which resulted in a loss of $290,000 for the seller, marks the first unprofitable deal at the 56-unit freehold development historically, based on URA caveat records.
In the landed segment, a detached house at Frankel Estate in District 15 fetched a profit of $3.4 million after being held for four years. The seller realised an annualised gain of 12% from the transaction. The property, which sits on a 5,371 sq ft freehold site on Siglap Valley, was purchased in August 2012 at $1,146 psf on land and resold at $1,775 psf on Aug 31.
Meanwhile, two landed houses reaped profits of more than $2 million each for their sellers on Sept 1. The bigger profit of $2.8 million was from a semi-detached house on Coronation Drive in prime District 10. The seller purchased the freehold property, with a land area of 3,261 sq ft, in December 2006 at $659 psf on land and resold it at $1,517 psf 20 years later. This translates into a 4% annualised gain.
The smaller profit of $2 million accrued to a freehold terraced house on Toh Tuck Place in District 21. The property, with a land area of 3,358 sq ft, was purchased in February 2007 at $408 psf on land and resold at $1,026 psf. The annualised gain works out to 10%. The computed gains for the landed properties exclude any renovation or refurbishment costs incurred by the seller.