Unit at Urbana sees $2 million loss

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/ The Edge Property
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June 25, 2017 8:30 AM SGT
The seller of a 2,314 sq ft unit at Urbana in prime District 9 incurred the biggest loss for the week of June 6 to 13. He bought the unit in a sub-sale for $5.55 million ($2,399 psf), the project’s highest price on record in terms of both quantum and psf price, in August 2007 and sold it for $3.52 million ($1,521 psf) on June 7. The $2.03 million loss, the biggest at Urbana so far, translates into 37%, or 5% a year over a holding period of nearly 10 years.
Urbana is a freehold condominium located within walking distance of the upcoming Great World MRT station. Find the most affordable listing in the project here
Based on URA caveat data, the unit also fetched the highest profit on record at Urbana when it was sold at a $3.41 million profit in August 2007. The previous seller bought it from the developer for $2.14 million ($923 psf) in December 2004 and made a 160% profit, or 43% annualised profit in less than three years. Urbana is a freehold condominium with 126 units. It was completed in 2007 and is located within walking distance of the upcoming Great World MRT station.
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June 8 saw the 11th unprofitable transaction at Scotts Square in prime District 9 this year. The seller of a 635 sq ft, one-bedroom unit made a loss of $771,525. He bought the unit for $2.68 million ($4,214 psf) from the developer in September 2007 and sold it for $1.91 million ($3,000 psf). This translates into a 29% loss, or 3% a year over 10 years.
There have been no profitable transactions at Scotts Square since September 2015 when a 1,227 sq ft unit changed hands at a $295,650 profit. There were seven unprofitable transactions last year. The sellers sustained losses ranging from $647,088 to $1.2 million, with an average loss of $910,579, or 24%. Scotts Square is a mixed-use development completed in 2011. It has 338 freehold residential units and is located within walking distance of the Orchard MRT station.
Meanwhile, a 2,626 sq ft, four-bedroom unit at Pebble Bay fetched the biggest profit of the week on June 7. The previous owner bought the unit for $2.08 million ($792 psf) from the developer in April 1996 and made a $1.6 million profit when he sold it for $3.68 million ($1,401 psf). He realised a 77% gain, or 3% a year over 21 years.
A 2,626 sq ft unit at Pebble Bay fetched a $1.6 million profit on June 7. Find the most affordable listing in the project here
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This marks the ninth profitable transaction at Pebble Bay this year. It is also the most profitable transaction since November 2015, when a 2,745 sq ft unit changed hands for a $1.91 million profit. Prices at Pebble Bay peaked in 2013 when 19 units were sold at an average price of $1,424 psf. In 2016, 16 units changed hands at an average price of $1,181 psf. Prices have recovered this year, with 11 units transacted so far at an average price of $1,292 psf. Completed in 1997, Pebble Bay is a 99-year leasehold condo comprising 510 units. The project is located opposite the upcoming Tanjong Rhu MRT station.
On June 7, a 4,123 sq ft unit at Avalon in prime District 10 fetched a $1.57 million profit, the week’s second highest. The unit was purchased at $3.98 million ($965 psf) in April 2006 and sold for $5.5 million ($1,346 psf). The seller made a 39% profit, or 3% annualised profit over a holding period of 11 years. Completed in 1999, Avalon is a freehold condo with 82 units. It is located on Anderson Road and opposite Raffles Girls’ Secondary School.
This article appeared in The Edge Property Pullout, Issue 785 (Jun 26, 2017) of The Edge Singapore