Windfall in District 20

By Esther Hoon / The Edge Property | September 30, 2016 9:21 AM SGT
Two landed homes off Upper Thomson Road fetched a total profit of $8 million on Sept 19. Both units were previously purchased in 2006 and held for 10 years. The computed gains for the landed properties, however, exclude any refurbishment or other enhancement costs that might have been incurred by the seller.
The bigger profit of $6.1 million accrued to a two-storey bungalow at Windsor Park Estate, which was sold for $8.6 million, or $1,203 psf on land area. Since the seller purchased the freehold property with a land area of 7,147 sq ft in June 2006 at $350 psf, this reflects an annualised gain of 13%. This is the most profitable transaction in the estate, apart from a Good Class Bungalow that fetched a profit of $16 million in October 2015.
A freehold two-storey bungalow at Windsor Park Estate was sold for $8.6 million, or $1,203 psf on land area, on Sept 19, for a profit of $6.1 million
The smaller profit of $1.9 million accrued to a terraced house on Soo Chow Rise with a land area of 1,841 sq ft. The unit, the second terraced house sold at the estate this year, fetched $2.9 million, or $1,563 psf on land, triple its purchase price of $532 psf in September 2006. The annualised gain works out to 11%.
Meanwhile, the most profitable non-landed home sold in the week of Sept 13 to 20 was a 2,336 sq ft unit at Sommerville Park. The seller profited $2.3 million from the deal, or an annualised gain of 7% over 18 years. He purchased the ground-floor unit in November 1998 at $462 psf and resold it at $1,447 psf on Sept 16. This marks the most profitable transaction at the 453-unit freehold project since November 2012, when a 2,325 sq ft, ground-floor unit netted a profit of $2.4 million. Four other units from the development transacted profitably this year, with two fetching gains of more than $1 million.
On the other hand, two sellers from the high-end housing segment incurred losses of more than $1 million each on Sept 15. The bigger loss of $3.1 million was traced to a 3,251 sq ft unit at Parkview Eclat in prime District 10. The seller, who had purchased the unit from the developer at $3,360 psf in July 2007, incurred an annualised loss of 4% over nine years from the disposal of the unit at $2,399 psf, the lowest recorded at the development so far. This is the second transaction at the project that generated a loss of $3 million and above. In July 2015, a 3,251 sq ft unit on the sixth floor was sold at a $3.2 million loss when it changed hands for $2,523 psf. Parkview Eclat is a 35-unit freehold condo project on Grange Road that was completed in 2009.
The smaller loss of $1.8 million came from a 1,550 sq ft unit at Hilltops in prime District 9, which was sold for $3.8 million, or $2,419 psf. This works out to an annualised loss of 4%. The seller paid the developer $3,576 psf in November 2007 for the unit. Hilltops is a freehold condo on Cairnhill Circle comprising 241 units. The project was completed in 2011.
This article appeared in The Edge Property Pullout, Issue 748 (Oct 3, 2016) of The Edge Singapore.