More District 9 sellers in the red

By Esther Hoon / The Edge Property | September 2, 2016 9:55 AM SGT
There were more losses than gains for property transactions in prime District 9 in the week of Aug 16 to 23, based on URA caveat records. Three of the heftiest losses incurred in the week were from this prime district.
The biggest loss of $2.8 million was traced to a 2,250 sq ft unit at Leonie Parc View, which was held for nine years before it changed hands on Aug 19 at a bargain price of $2,178 psf, the second-lowest transacted price at this project. The seller had purchased the unit from the developer at $3,421 psf in June 2007, which means an annualised loss of 5%. This marks the biggest loss sustained at the development. Previously, a 2,250 sq ft unit on the ninth floor was sold at a record low of $1,978 psf in December 2015. The sale resulted in a loss of $2.2 million for the seller. The 44-unit freehold project is located off River Valley Road and was completed in 2009.
A 2,250 sq ft unit at Leonie Parc View was sold at a $2.8 million loss
At OUE Twin Peaks, a 1,604 sq ft unit was sold within four years of purchase at $2,182 psf on Aug 18. The seller, who bought the unit from the developer in September 2012 at $2,806 psf, incurred a $1 million loss from the recent transaction. The sale is subject to a 4% seller’s stamp duty, or $140,000, based on the sale price. Including the SSD, the annualised loss works out to be 7%. This is the biggest loss sustained at the project so far. OUE Twin Peaks is a 99-year leasehold condo project on Leonie Hill Road comprising 462 units. It was completed last year.
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The smallest of the top three losses was from the first resale transaction at Alba, for a 1,905 sq ft unit on the seventh floor. The transaction resulted in a loss of $736,000 for the seller, who purchased the unit from the developer at $2,460 psf in November 2009 and resold it at $2,073 psf in August. This is the lowest price achieved at the development, apart from a 1,862 sq ft unit that was sold for $2,068 psf in October 2009. Alba is a 50-unit freehold development on Cairnhill Rise that was completed last year.
Of the two landed houses sold at a loss in the week, one was a terraced house on Kim Yam Road in District 9. The property, which sits on a 1,629 sq ft plot, was disposed of at a $470,000 loss on Aug 17. The other unprofitable deal involved a 3,671 sq ft, strata-detached house on Ponggol Seventeenth Avenue in District 19, which was sold at a loss of $520,000 on the same day.
Meanwhile, the only non-landed house that fetched a profit of more than $1 million in the week was a 3,175 sq ft unit at The Edge on Cairnhill in District 9. The seller, who held the unit for 14 years, gained $1.4 million from the deal on Aug 18. Despite the massive haul, the annualised profit works out to be only 2%. The Edge on Cairnhill is a 46-unit freehold condo off Scotts Road that was completed in 2002.
Separately, in District 5, a 1,313 sq ft unit at Varsity Park Condominium fetched a profit of $882,059, or an annualised gain of 9%, for the seller on Aug 18. All 10 transactions at the project this year were profitable. The most profitable deal was transacted in July, when a 2,293 sq ft unit changed hands for a $1.3 million profit, or an annualised gain of 10%. Varsity Park Condominium is a 99-year leasehold project on West Coast Road comprising 530 units. The project was completed in 2008.
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This article appeared in The Edge Property Pullout, Issue 744 (Sep 5, 2016) of The Edge Singapore.