Seller of Yong An Park unit earns record $6.8 mil profit

By
/ EdgeProp Singapore
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June 26, 2020 6:00 AM SGT
SINGAPORE (EDGEPROP) - The most profitable deal during the week of June 9 to 16 was the sale of a 6,695 sq ft unit at Yong An Park, a freehold development in District 9.
According to URA Realis caveats, the sprawling five-bedroom unit on the 25th floor fetched $10.1 million ($1,509 psf) when it was sold on June 10. It was bought for $3.3 million ($493 psf) in December 2004. Thus, the seller earned a profit of $6.8 million (206%) on the sale, which translates to an annualised profit of 7.5% over nearly 16 years.
EDGEPROP SINGAPORE -  The five-bedroom unit at Yong An Park was sold for $10.1 million on June 10. (Picture: Samuel Isaac Chua/The Edge Singapore)
The five-bedroom unit at Yong An Park was sold for $10.1 million on June 10. (Picture: Samuel Isaac Chua/The Edge Singapore)
The 288-unit freehold development was completed in 1986 and comprises two- to five-bedroom units from 1,022 sq ft to 8,331 sq ft. The condominium is located on River Valley Road, beside the upcoming Great World MRT Station on the Thomson-East Coast Line. It is also located near River Valley Primary School and the Chatsworth International School (Orchard Campus). A number of new luxury residential developments — including Martin Modern, The Avenir, 8 St Thomas and Riviere — are also in the area.
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The June 10 sale is also the most profitable resale ever recorded at Yong An Park. It surpassed the previous record of $5.31 million (167%), which involved the sale of a 6,878 sq ft unit that changed hands for $8.5 million ($1,236 psf) in April 2011. It was bought for $3.19 million ($463 psf) in June 2002, which translates to an annualised profit of 12% over nearly nine years.
Based on caveats lodged, Yong An Park has only recorded profitable resale transactions over the past five years. Excluding the June 10 sale, profits have ranged from $265,000 for a 1,023 sq ft unit in 2016 to $3.8 million for a 3,229 sq ft unit in 2019.
However, the most unprofitable resale transaction recorded during the week occurred at Spottiswoode 18 in District 2. A 893 sq ft, one-bedroom penthouse unit at the freehold development fetched $1.28 million ($1,433 psf) on June 11. It was purchased for $1.93 million ($2,159 psf) in February 2011. This means that the seller made a loss of $648,900 (34%) on the sale, which translates to an annualised loss of 4.3% over nine years.
EDGEPROP SINGAPORE -  The seller of a penthouse unit at Spottiswoode 18 incurred a loss of $648,900 on June 11. (Picture: Samuel Isaac Chua/The Edge Singapore)
The seller of a penthouse unit at Spottiswoode 18 incurred a loss of $648,900 on June 11. (Picture: Samuel Isaac Chua/The Edge Singapore)
Spottiswoode 18 is a 251-unit development along Spottiswoode Park Road in Tanjong Pagar. The five year old condominium comprises a 35-storey residential block with a mix of one- and two-bedroom units of 388 to 657 sq ft, and eight duplex ranging from 893 to 1,292 sq ft.
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The development is close to the CBD and the upcoming Cantonment MRT Station on the Circle Line. It is also located at the foot of the planned Greater Southern Waterfront, a long-term redevelopment which covers 30km of coastline that stretches from the Gardens by the Bay East area to Pasir Panjang.
Based on caveats lodged to date, the latest transaction at Spottiswoode 18 now takes the top spot as the most unprofitable deal at the development. The previous record involved another 893 sq ft penthouse that changed hands for $1.45 million (1,623 psf) in March 2019, at a $382,455 (21%) loss for the seller.
EDGEPROP SINGAPORE - GAINS AND LOSSES
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