One-bedroom unit in Kallang fetches profit of more than $600,000

By Esther Hoon / The Edge Property | September 16, 2016 11:38 AM SGT
A 614 sq ft, one-bedroom unit at Southbank — a 197-unit, 99-year leasehold project near Kallang River — changed hands at a profit of $608,000 on Aug 30. The unit went for $1,614 psf, or $990,000, more than double the $623 psf the seller paid to the developer in June 2006. The annualised gain for the transaction works out to be 10%.
A 614 sq ft, one-bedroom unit at Southbank went for $1,614 psf, or $990,000, more than double the $623 psf the seller paid to the developer in June 2006
Nine out of the 10 most profitable non-landed homes transacted in the week of Aug 30 to Sept 6 had holding periods of at least 10 years. The most profitable deal accrued to a 2,885 sq ft luxury condominium unit at Ardmore Park, which fetched a profit of $3.3 million for the seller on Sept 5. The seller, who had purchased the unit from the developer at $1,695 psf in August 1996, had held the unit for 20 years before reselling it at $2,843 psf, or $8.2 million. The annualised gain works out to be 3%.
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Separately, two other condo units garnered profits of more than $1 million each for their sellers on the same day. The bigger profit of $1.2 million was from a 1,356 sq ft unit at The Imperial, a freehold condo project comprising 187 units in prime District 9. The unit, which was previously purchased in a sub-sale for $1,054 psf, was held for 10 years before it was resold at $1,954 psf on Sept 5. This translates into an annualised gain of 6%.
The smaller profit of $1.1 million accrued to a 2,637 sq ft, four-bedroom unit at The Sovereign, an 87-unit freehold condo development on Meyer Road that overlooks East Coast Park. The seller purchased the unit in June 2009 at $910 psf and resold it at $1,342 psf on Sept 5, reflecting an annualised gain of 6%.
The biggest loss sustained in the week was from a 1,281 sq ft unit at Lush on Holland Hill, a freehold condo project off Holland Road in prime District 10. The transaction, which resulted in a loss of $290,000 for the seller, marks the first unprofitable deal at the 56-unit freehold development historically, based on URA caveat records.
In the landed segment, a detached house at Frankel Estate in District 15 fetched a profit of $3.4 million after being held for four years. The seller realised an annualised gain of 12% from the transaction. The property, which sits on a 5,371 sq ft freehold site on Siglap Valley, was purchased in August 2012 at $1,146 psf on land and resold at $1,775 psf on Aug 31.
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Meanwhile, two landed houses reaped profits of more than $2 million each for their sellers on Sept 1. The bigger profit of $2.8 million was from a semi-detached house on Coronation Drive in prime District 10. The seller purchased the freehold property, with a land area of 3,261 sq ft, in December 2006 at $659 psf on land and resold it at $1,517 psf 20 years later. This translates into a 4% annualised gain.
The smaller profit of $2 million accrued to a freehold terraced house on Toh Tuck Place in District 21. The property, with a land area of 3,358 sq ft, was purchased in February 2007 at $408 psf on land and resold at $1,026 psf. The annualised gain works out to 10%. The computed gains for the landed properties exclude any renovation or refurbishment costs incurred by the seller.
This article appeared in The Edge Property Pullout, Issue 746 (Sep 19, 2016) of The Edge Singapore.