Landed houses flipped for million-dollar profits

/ The Edge Property
December 10, 2016 9:00 AM SGT
On Nov 25, a 999-leasehold terraced house on Huddington Avenue in Serangoon Garden Estate was flipped for a $1.78 million profit. The seller had bought the 2,982 sq ft property at $873 psf on land in April 2015 and sold it at $1,470 psf. As the holding period is 1.6 years, the sale is subject to a 12% Seller's Stamp Duty (SSD) on the transacted price of $4.38 mllion, which translates into $525,600. The net profit after accounting for SSD is $1.25 million, or 48%. The computed price gain for landed properties, however, excludes any renovation or refurbishment costs incurred by the seller.
This 999-year leasehold terraced house on Huddington Avenue that was bought last year was sold for a $1.25 million profit, after accounting for SSD, on Nov 25
For residential properties sold in the week of Nov 22 to 29, the largest profit in the non-landed segment accrued to a 2,024 sq ft unit at Pandan Valley that was sold at $867 psf on Nov 25. The seller had bought the unit at $414 psf in December 2004 and realised a profit of $917,000 (109%), or 9% annualised over a 12-year holding period. Completed in 1978, Pandan Valley is a 605-unit freehold condominium located close to Ulu Pandan Road.
On Nov 28, two units at Rivergate fetched profits of $917,000 and $557,600 for their sellers. The larger profit accrued to a 1,044 sq ft unit on the 18th storey that was purchased at $1,112 psf in June 2005 and sold at $1,990 psf, resulting in a 79% profit, or 7% annualised over 11.4 years.
The smaller profit accrued to a 1,550 sq ft unit on the 23rd storey that was bought at $1,543 psf in October 2006 and sold at $1,903 psf, resulting in a 23% profit, or 2% annualised over a holding period of 10 years. Both units had been bought from the developer, based on caveat data for prior transactions. Rivergate is located on Robertson Quay, in prime District 9 and in the vicinity of the upcoming Great World and Havelock MRT stations. Completed in 2009, it comprises 545 freehold apartment units.
On Nov 25, $3.12 million went down the drain for the seller of a 3,057 sq ft unit at The Ritz-Carlton Residences in prime District 9. The unit was bought at $3,533 psf in a sub-sale in March 2013 and sold at $2,617 psf, resulting in a loss of $2.8 million. The transaction is subject to a 4% SSD, owing to a 3.7-year holding period. The net loss after accounting for an SSD of $320,000 on the $8 million sale price is 29%. The previous owner of the unit sustained a $700,000 loss after buying it at $3,762 psf from the developer in September 2010.
The Ritz-Carlton Residences is located on Cairnhill Road and comprises 58 freehold apartment units completed in 2011. Based on caveat data matching, there have been three unprofitable transactions at the development so far, and no profitable transactions. In March 2016, a 2,831 sq ft unit was sold at $2,508 psf. The seller bought it at $3,815 psf in June 2013. Owing to a 2.8-year holding period, the seller had to pay an 8% SSD, or $568,000, resulting in a net loss of $4.27 million.
The second-largest loss of the week accrued to a 6,039 sq ft strata-detached house at Mt Sinai Residences in prime District 10. The seller bought the 999-year leasehold property at $1,023 psf in a sub-sale in April 2012 and sold it at $664 psf on Nov 23, 2016, resulting in a loss of $2.17 million, or 35%. The previous owner of this property had reaped a profit of $2.2 million, or 55%, when he sold it in April 2012. He bought it at $659 psf from the developer in May 2010.
This article appeared in The Edge Property Pullout, Issue 758 (Dec 12, 2016) of The Edge Singapore.