Resale of large units in prime districts see profit widen

By Tan Chee Yuen / The Edge Property | May 27, 2017 8:00 AM SGT
The top three most profitable deals in the week of May 9 to 16 were in prime Districts 9 and 10, and they were for big, four-bedroom units in older developments. The most profitable deal was the sale of a 2,540 sq ft, four-bedroom unit at Leonie Gardens in prime District 9. The sixth-floor unit was sold for $3.2 million ($1,260 psf), according to a caveat lodged on May 11. The previous owner purchased the unit for $1.9 million ($748 psf) in September 2006, which translates to a gain of 68% over a holding period of almost 11 years, or an annualised gain of 5% a year.
The 138-unit Leonie Gardens is a 99-year leasehold condominium completed in 1993. The Leonie Hill neighbourhood has a mix of new and old developments. New projects include the 462-unit OUE Twin Peaks, a 99-year leasehold development completed in February 2015, and a redevelopment of the former Grangeford. Targeted for launch in 2H2017 is the 124-unit New Futura by City Developments. The freehold condo tower is a redevelopment of the former Futura project.
Older developments in the Leonie Hill neighbourhood include the 210-unit Horizon Towers next door, which is also a 99-year leasehold development completed in 1984. Across the road is the freehold Leonie Towers, a 24-storey apartment block with 92 units completed in 1975. Leonie Gardens is within walking distance of the upcoming Great World MRT station on the Thomson-East Coast Line.
A 2,540 sq ft, four-bedroom unit at Leonie Gardens fetched the week’s biggest profit of $1.3 million. Find the most affordable listing in the project at bit.ly/LeonieGardensEdge
The second most profitable deal in the week was for a 1,894 sq ft, four-bedroom unit at RiverGate that fetched $3.8 million ($2,006 psf), based on a caveat lodged on May 16. The previous owner paid $2.5 million ($1,330 psf) for the unit in a sub-sale in April 2009. He recognised a gain of 51% or 5% a year over the past eight years.
However, the seventh-floor unit at RiverGate had been transacted twice prior to this. In a sub-sale in September 2006, it fetched $2.35 million ($1,240 psf). And in September 2005, the unit was bought from the developer for $1.94 million ($1,024 psf).
RiverGate is a prime, freehold landmark...