Seller incurs 40% loss at Orchard Scotts

By Esther Hoon / The Edge Property | August 8, 2016 8:00 AM SGT
Another seller at Orchard Scotts incurred a hefty loss despite having held the unit for nearly eight years. The loss, which amounted to $1.6 million, accrued to a 1,647 sq ft unit that was purchased in August 2008 at $2,438 psf. The unit changed hands at $1,438 psf on July 22, which was 40% below its purchase price, reflecting an annualised loss of 6%.
In June, a 2,282 sq ft unit on the ninth floor was sold at a $2.4 million loss. All the resale transactions in the project since 2H2014 have been unprofitable. Orchard Scotts is a 99-year leasehold condominium in District 9 and was completed in 2008.
All the resale transactions at Orchard Scotts since 2H2014 have been unprofitable
Separately, a 2,680 sq ft unit at Marina Bay Suites, a 99-year leasehold condo in District 1, was sold at a loss of $1 million after a six-year holding period. The seller purchased the unit at $2,623 psf from the developer in December 2009 and resold it at $2,239 psf on July 26. In January, another 2,680 sq ft unit on the eighth floor was sold at a loss of $1.8 million.
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The most profitable non-landed home sold in the week of July 19 to 26 accrued to a 2,271 sq ft unit at Sky@Eleven. The unit fetched a profit of $1.1 million, or an annualised gain of 4%, after being held for nine years. The seller purchased the unit from a sub-sale in April 2007 at $1,110 psf and resold it at $1,585 psf.
Sky@Eleven is a freehold condo on Thomson Lane in prime District 11. The 273-unit development was completed in 2010. Of the five units sold at the condo this year, four fetched lucrative profits exceeding $800,000 each. The four units were purchased in 2007 and 2009.
The unprofitable transaction was traced to a unit that was bought in 2011. In the same week, two detached houses fetched a profit exceeding $4 million each for the sellers. The bigger profit of $4.7 million accrued to a house on Jalan Ampang in prime District 10, which sits on a 7,858 sq ft freehold land. The property was purchased in December 2009 at $1,056 psf on land area and resold at $1,654 psf, reflecting an annualised gain of 7%.
The smaller profit of $4.6 million was due to a house on Mugliston Road in District 15. The property, which sits on a 5,974 sq ft freehold land, was purchased in December 2004 at $303 psf on land area and resold at $1,071 psf. The annualised gain works out to 11%.
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The profits do not take into account any construction cost or enhancements done to the property.
Meanwhile, three strata houses were sold at losses ranging from $180,000 to $450,000 in the week of July 19 to 26. The top loss of $450,000 was traced to a 3,800 sq ft semi-detached house on Jalan Emas Urai in District 23. The house, which sits on a 999-year leasehold land, was purchased in December 2007 at $724 psf and resold at $605 psf.
On Tagore Avenue in District 26, a 3,165 sq ft strata house was sold at a loss of $232,888. The 99-year leasehold semi-detached house was bought at $683 psf in January 2011 and resold at $610 psf.
The third unprofitable deal was for a freehold, 4,650 sq ft strata semi-detached house on Jalan Lim Tai See in District 10. The seller took in a loss of $181,000, having purchased the property in September 2008 at $706 psf and resold it at $667 psf.
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This article appeared in The Edge Property Pullout, Issue 740 (August 8, 2016) of The Edge Singapore.