Hefty profits from old, freehold condo units

By Esther Hoon / The Edge Property | May 7, 2016 6:00 AM SGT
Join our  Telegram  channel and follow our  Facebook  for the latest update.
Three condominium units were sold at a profit of more than $1 million each, based on the latest caveats published by URA on April 22 and 26. All three condos were more than 20 years old and located in prime districts.
The top gain, which amounted to a whopping $2.3 million, accrued to a 1,916 sq ft unit at The Beaumont on Devonshire Road. The unit on the seventh floor was purchased for $1.6 million ($825 psf) in 2005 and resold in April this year for $3.9 million ($2,029 psf). This translated into an annualised gain of 9%. The Beaumont is a 64-unit freehold condo, which was completed in 1985.
Separately, a 1,335 sq ft unit at Tanglin Park netted a $1.2 million profit for the seller. The unit was purchased in September 2006 for $1.2 million ($928 psf) and resold last month for $2.5 million ($1,864 psf), yielding an annualised gain of 8%. Tanglin Park is a 274-unit freehold condominium, which was completed in 1988.
ADVERTISEMENT
The last million-dollar profit was traced to a 1,507 sq ft unit at Chatelet on Margoliouth Road. The seller reaped a $1.1 million profit from the sale last month for $2.1 million ($1,394 psf). He purchased the unit in October 2006 for $1.1 million ($709 psf).
Chatelet is a 45-unit freehold condo, which was completed in 1993. Landed homes have also remained largely profitable. Of the 15 transactions where the previous caveats could be traced, only two were in the red.
The most profitable deal for landed homes accrued to a 1,539 sq ft terrace house in Bowmont Gardens. The transaction yielded a $2 million profit for the seller, or an annualised gain of 8%. The house was purchased in April 2000 for $840,000 ($546 psf) and resold last month for $2.8 million ($1,839 psf).
Meanwhile, another terrace house on Hythe Road was sold for a $1.9 million profit after being held for slightly above four years. This translated into an annualised gain of 13%. The seller purchased the property for $3 million ($828 psf) in March 2012 and resold it for $5 million ($1,344 psf) last month.
ADVERTISEMENT
However, not all sellers were lucky. A total of 18 deals were unprofitable. Of these, nine were located in the prime districts. The biggest loss, which amounted to slightly over $1 million, was traced to a 1,970 sq ft, three-bedroom apartment at 111 Emerald Hill.
The seller purchased the unit from the developer in February 2011 for $5.1 million ($2,602 psf). The unit changed hands last month for $4.1 million ($2,081 psf).
Another seller had held on to his unit for nine years yet still incurred a loss exceeding $400,000. The unit at Cairnhill Crest was purchased for $2.5 million ($2,051 psf) in 2007, but sold last month for slightly above $2 million ($1,707 psf).
ADVERTISEMENT
A unit at The Beaumont was recently sold for a profit of $2.3 million
This article appeared in The Edge Property Pullout, Issue 727 (May 9, 2016) of The Edge Singapore.

Follow Us
Follow our channels to receive property news updates 24/7 round the clock.
EdgeProp Telegram
EdgeProp Facebook
Subscribe to our newsletter