Record $4.45 mil loss at Ritz-Carlton Residences

SINGAPORE (EDGEPROP) - A 3,057 sq ft, four-bedroom unit on the 25th floor at Ritz-Carlton Residences was sold for $11 million ($3,599 psf) on Dec 14 last year. The unit was purchased for $15.4 million ($5,053 psf) in January 2008. Thus, the seller made a loss of $4.45 million (29%), rendering it the most unprofitable deal for the week of Dec 14 to 28 last year. This translates to an annualised loss of 2.4% over 14 years.

Based on URA caveats, this makes it the most unprofitable resale transaction recorded so far at Ritz-Carlton Residences. The previous record loss involved the sale of a 2,831 sq ft, three-bedroom unit on the 18th floor in March 2016. That unit was sold for $7.1 million ($2,508 psf) after it had been purchased for $10.8 million ($3,815 psf) in June 2013. Thus, the seller suffered a loss of $3.7 million (34%), which translates to an annualised loss of 14% over nearly three years.

While the unit at Ritz-Carlton Residences saw a record loss, three 3,057 sq ft, four-bedroom units in the development changed hands for more than $4,000 psf last year. This marked the first time units at Ritz-Carlton Residences crossed the $4,000 psf threshold. Last year, one unit fetched $13.2 million ($4,318 psf) on Jan 14, another was sold for $14 million ($4,580 psf) on Aug 13, while the third changed hands for $15 million ($4,907 psf) on Oct 15.

The second most unprofitable resale transaction during the week occurred at Cliveden at Grange. A 2,842 sq ft, four-bedroom unit was sold for $8 million ($2,815 psf) on Dec 22. The unit had been bought for $10.3 million ($3,637 psf) in August 2007. As a result, the seller incurred a loss of $2.3 million (23%), which translates to an annualised loss of 1.8% over 14½ years.

Cliveden at Grange is a freehold luxury development on Grange Road in prime District 10. The project was completed in 2011 by City Developments. The 110-unit development comprises a mix of three- and five-bedroom units of 6,028 sq ft to 2,152 sq ft.

On the other hand, the most profitable transaction during the week was the sale of a 2,088 sq ft unit at Pandan Valley. The unit was sold for $3.05 million ($1,461 psf) on Dec 20, after it had been purchased for $1.32 million ($631 psf) in July 1997. Thus, the seller earned a profit of $1.73 million (131%), which translates to an annualised profit of 3.5% over 24½ years.

There were more than 30 resale transactions at Pandan Valley last year, and caveats showed that more than half of them were profitable, with profits ranging from $218,000 to $2.31 million. The most profitable transaction last year involved a 3,272 sq ft unit that fetched $3.8 million ($1,164 psf) on May 14. The seller had bought that unit for $1.48 million ($455 psf) in March 2001, and thus made a profit of $2.32 million (155%). This is an annualised profit of 4% over 20 years.