$3 million profit in Sentosa Cove

By
/ The Edge Property
|
October 4, 2016 5:30 PM SGT
Sept 26 saw the second transaction for a detached house in Sentosa Cove this year. A house at Ocean Drive with a land area of 9,580 sq ft was transacted at a profit of $3 million for the seller who had bought the house for $25 million, or $2,610 psf on land, in 2011 and resold it at $28 million, or $2,923 psf. The buyer is understood to be a Chinese national. Based on URA caveat data, the property has changed hands thrice at a profit.
In the week of Sept 20 to 27, the largest profit, in the landed residential segment, of $3.6 million accrued to a detached house on Mayfield Avenue with a land area of 5,296 sq ft. The house was bought for $2.4 million, or $453 psf on land, in 2003 and resold at $6 million, or $1,132 psf, on Sept 23, resulting in an annualized profit of 11% for the seller. This is also the most profitable transaction for landed homes at Mayfield Avenue to date. The computed gains for landed properties, however, exclude any refurbishment or other enhancement costs that might have been incurred by the seller.
In the non-landed segment, a 6,060 sq ft at The Orchard Residences was transacted at a profit of $1.62 million on Sept 21. The owner who had bought the unit from the developer for $15.88 million, or $2,620 psf, in 2007 resold it at $17.5 million, or $2,888 psf. Despite the hefty gain, the annualized gain works out to about 1% over nine years. The Orchard Residences is a 175 unit leasehold development located above ION Orchard in district 9.
Two more non-landed homes were sold at profits of over a million each for their owners. On Sept 26, a 3,186 sq ft unit at Hills Apartment was sold at $4.5 million, or $1,412 psf, after being bought for $2.88 million, or $904 psf, in 2004. This resulted in a $1.62 million profit or an annualized gain of 5%. Hills Apartment is a 10-unit freehold development near Anglo-Chinese School (Barker Road) that was completed in 1975.
A day later, on Sept 27, a 1,959 sq ft unit at Teresa Ville that was bought for $800,000, or $408 psf, in 2003 was resold at $1.88 million, or $960 psf, resulting in a $1.08 million profit or an annualized gain of 10% over 13 years. Teresa Ville is a...