$1.8 mil loss at Orchard Scotts

By Lin Zhiqin / The Edge Property | December 3, 2016 10:00 AM SGT
On Nov 15, $1.8 million went down the drain for the Indonesian seller of a 1,647 sq ft condominium at Orchard Scotts. He sold the unit at $1,427 psf to a Singaporean buyer after purchasing it at $2,540 psf in January 2012. This translates into a 44% loss for the seller, or 9% annualised loss over a holding period just shy of five years. However, as the Singapore dollar has appreciated against the Indonesian rupiah over the same period, the seller could have sustained a smaller loss of 25% in IDR terms, or $782,692 in SGD terms, after accounting for the exchange rate.
Prices at Orchard Scotts, a 99-year leasehold development completed in 2008, have trended down since 2013, when a 2,336 sq ft unit was sold at $8.5 million, or $3,620 psf. Orchard Scotts is located within walking distance of the Newton MRT station in prime District 9 and has 387 units.
For residential properties sold in the week of Nov 15 to 22, the second largest loss of $230,000 accrued to a 1,270 sq ft unit at Neptune Court, opposite Victoria Junior College in District 15. The unit was bought at $842 psf in June 2006 and sold at $661 psf on Nov 16. Neptune Court comprises 751 units and has a remaining tenure of 57 years.
Elsewhere in District 15, a 1,604 sq ft unit in The Seafront on Meyer and a 1,001 sq ft unit in Mandarin Garden Condominium accounted for the third- and fourth-highest losses in the week, with their respective sellers losing $89,000 and $80,000. The Seafront on Meyer has 327 freehold units completed in 2010, while the 99- year leasehold Mandarin Garden comprises 1,006 units completed in 1986.
The largest profit of $1.3 million for the week in the non-landed segment accrued to a 2,325 sq ft unit at Varsity Park Condominium. It was bought at $390 psf in October 2004 and sold at $963 psf on Nov 18, resulting in a 147% profit, or 12% annually, for the seller. Varsity Park is a 99-year leasehold development located across Clementi Road from the National University of Singapore and has 530 units completed in 2008.
District 15 is also home to the second and third most profitable deals in the non-landed segment. The bigger profit of $1.02 million accrued to a 1,302 sq ft unit at The Belvedere. It was bought at $817 psf in June 2005 and sold at $1,597 psf on Nov 21, resulting in an 8% annualised profit for the seller over 11 years. The Belvedere is a freehold condo located close to the upcoming Katong Park MRT station. It comprises 167 units completed in 2007.
The smaller profit of $985,000 accrued to a 2,131 sq ft unit at Katong Park Towers. The seller had bought it at $406 psf in November 1999 and sold it at $868 psf on Nov 16, resulting in an annualised profit of 7% over 17 years. Katong Park Towers is a 99-year leasehold condo located within walking distance of the Katong Park station and comprises 116 units completed in 1987.
A 2,088 sq ft unit at Pebble Bay and a 2,153 sq ft unit at Malvern Springs, both located in District 15, also made it to the list of the 10 mostprofitable deals in the non-landed segment. The Pebble Bay unit made a $900,000 profit for the seller, who bought it at $886 psf in May 2000 and sold it at $1,317 psf on Nov 18. The seller at Malvern Springs enjoyed a $700,000 profit from the sale of his unit at $813 psf on Nov 17, after buying it for $488 psf in July 2009.
Pebble Bay is a 99-year leasehold condo comprising 510 units completed in 1997, while Malvern Springs has 75 freehold units completed in 2004.
In the landed segment, a detached house on Branksome Road in District 15 fetched an $11.4 million profit on Nov 21. The seller had paid $381 psf on land in June 2007 and sold it at $1,170 psf, enjoying a 16% annualised profit over 12.9 years. The computed price gain for landed properties, however, excludes any renovation or refurbishment costs incurred by the seller.
The largest profit in the landed segment for the week accrued to a detached house on Third Avenue. The seller pocketed $12.9 million in profit from the Nov 16 sale at $1,066 psf, after buying the property at $402 psf on land in December 2005.
This article appeared in The Edge Property Pullout, Issue 757 (Dec 5, 2016) of The Edge Singapore.