Balmoral Gardens unit reaps $9.17 mil profit

By Bong Xin Ying / EdgeProp | May 19, 2018 10:00 AM SGT
A 4,758 sq ft unit on the third floor of Balmoral Gardens posted the highest gain of $9.17 million (524%) for the week of May 1 to 8, according to URA caveats.
On May 4, an international fund bought eight units at Balmoral Gardens for a total of $83 million (Credit: Samuel Isaac Chua/The Edge Singapore)
On May 4, the unit changed hands for $10.9 million ($2,295 psf). The seller purchased the unit in November 2002 for just $1.74 million ($368 psf). This translates into an annualised profit of 13% over a holding period of 15.4 years.
Second on the table of gains for the week is another unit at Balmoral Gardens. The 4,779 sq ft unit was sold for $10.8 million ($2,268 psf) on May 4. Having bought the unit in March 1996 for $5 million ($1,046 psf), the owner made a profit of $5.8 million (117%), or an annualised profit of 4% over a holding period of 22 years.
Notably, the two transactions at Balmoral Gardens were part of a bulk purchase of eight units by an anonymous international fund on May 4. The eight units were bought at an average price of $10.4 million ($2,316 psf) each, according to transactions culled from URA caveats as at May 15. The highest amount transacted in the May 4 bulk purchase was achieved by another 4,779 sq ft unit, sold at $11 million ($2,310 psf). The bulk purchase totalled $83 million, and also marks the first transaction in the project since 2002.
In February, the 37-year-old Balmoral Gardens, located on Balmoral Road, was put up for collective sale by tender, with Huttons Asia as the exclusive marketing agent. It failed to find a buyer then. The asking price of $92 million had translated into a land rate of $1,872 psf per plot ratio, which was lower than the average price of $2,316 psf from the May 4 bulk purchase.
Balmoral Gardens is a freehold condo located on Balmoral Road in prime District 10, with just 40 units sitting on a land area of 36,752 sq ft. It is near prestigious educational institutions such as Raffles Girls’ School and Anglo-Chinese School.
At Three Balmoral, a 40-unit freehold development near Balmoral Gardens, the average price from the three transactions for the year was $2,251 psf. A 614 sq ft unit was sold in March for $1.5 million ($2,456 psf). At nearby Goodwood Grand, a 73-unit freehold development completed in 2017, units were sold at an average price of $2,332 psf. The highest transaction price there so far was for an 893 sq ft unit at $2.29 million ($2,563 psf).
Meanwhile, in District 4, a 2,024 sq ft unit at The Coast at Sentosa Cove recorded a $652,000 loss (15%) for the week of May 1 to 8, according to caveats lodged.
The seller purchased the sixth-floor unit in January 2010 for $4.45 million ($2,200 psf). The three-bedroom unit was then sold at $3.8 million ($1,878 psf) on May 7, or an annualised loss of 2% over an eight-year holding period.
In 2017, three transactions at The Coast at Sentosa Cove saw profits that ranged from $16,380 to $351,200. There were also five unprofitable transactions that year, with losses starting from $400 to as high as $1.05 million.
The Coast at Sentosa Cove is a 99- year leasehold condominium on Sentosa Island. Completed in 2010, the 249-unit condo was developed by Ho Bee Group.
This article appeared in the EdgeProp Pullout, Issue 831 (May 21, 2018)