$1.8 mil loss at Orchard Scotts

/ 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...