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.
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.
This article appeared in The Edge Property Pullout, Issue 744 (Sep 5, 2016) of The Edge Singapore.