Simei leasehold condo fetches profit of almost $1 mil
By Esther Hoon
/ The Edge Property |
A 2,099 sq ft, five-bedroom unit at Eastpoint Green condominium on Simei Street 3 fetched a hefty profit of $972,000 despite having a remaining lease of less than 80 years. The seller, who purchased the unit from the developer at $375 psf in November 1998, held the unit for close to 18 years before reselling it at $839 psf, or $1.8 million, on Sept 8. Still, this translates into an annualised gain of 5% and marks the most profitable transaction at the 99-year leasehold project historically in terms of absolute gain. On top of this, a 969 sq ft unit on the third floor of the project was sold at a profit of $175,000 a day later on Sept 9. Eastpoint Green was completed in 1999 and comprises 646 units.
A 2,099 sq ft, five-bedroom unit at Eastpoint Green was sold at a profit of $972,000 this month
Separately, two sellers reaped profits of more than $1 million from the high-end segment in the week of Sept 6 to 13. Both units, sold a day apart, were previously purchased in 2005 and held for 11 years. The annualised gain for both transactions works out to be 7%. The bigger profit of $2.3 million accrued to a 3,100 sq ft unit at The Belmont, a freehold apartment off Holland Road in prime district 10. The seller purchased the unit in August 2005 at $645 psf and resold it at $1,397 psf, or $4.3 million, on Sept 8. The smaller profit of $1.6 million accrued to a 2,293 sq ft unit at Cairnhill Plaza, which was sold for $1,374 psf, or $3.2 million. The unit was previously purchased at $675 psf in September 2005. Cairnhill Plaza is a 204-unit, freehold apartment located on Cairnhill Road in prime District 9; it was completed in 1978.
The biggest loss in the week was traced to a 2,745 sq ft unit at Hillcrest Arcadia in District 11. The unit has changed hands six times in total, twice at a loss. In the latest transaction, the seller incurred a loss of $1.1 million when he sold the four-bedroom unit at a five-year low of $729 psf, or $2 million, on Sept 13 after holding it for five years. He paid a toppish $1,122 psf for the unit in March 2011, which leads to an annualised loss of 8%. This marks the most unprofitable transaction at the project so far, deeper than the loss of $620,000, when the same unit changed hands in July 2003. Hillcrest Arcadia is a 99-year leasehold condo project with 272 units off Eng Neo Avenue. The project was completed in 1980 and has a remaining lease of less than 60 years.
In the landed segment, a detached house on Lorong M Telok Kurau near East Coast Park netted a $4 million profit for the seller, who had held it for 14 years. The freehold property, with a land size of 6,179 sq ft, was purchased in March 2002 at $332 psf on land area and resold for $972 psf, or $6 million, on Sept 8. The last time a detached house was sold in the area was in 2009, when a neighbouring unit on a 5,177 sq ft land plot was sold for $464 psf, or $2.4 million. 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 747 (Sep 26, 2016) of The Edge Singapore.
Follow Us
Follow our channels to receive property news updates 24/7 round the clock.
EdgeProp Telegram
EdgeProp FacebookSubscribe to our newsletter
Top Articles
Search Articles