Ardmore Park unit makes $4.6 mil profit

ON Feb 9, a 2,885 sq ft unit at Ardmore Park in prime District 10 was sold at a $4.6 million profit. The gain works out to 94%, or 5% a year over 14 years. The previous owner bought it at $4.9 million, or $1,699 psf, in September 2002 and sold it at $9.5 million, or $3,293 psf.

This was the first transaction at Ardmore Park this year. The next most recent transaction, in December 2016, resulted in a $3.18 million profit for the seller. The 2,885 sq ft unit was bought at $6.4 million, or $2,219 psf, in August 2006 and sold at $9.58 million, or $3,321 psf. The profit works out to 50%, or 4% a year over 10 years.

There were 58 rental contracts for units of 2,800 to 2,900 sq ft at Ardmore Park in 2H2016, with monthly rents averaging $14,598. This implies a 2% gross rental yield for the recently transacted unit. Completed in 2001, Ardmore Park is a freehold condominium comprising 330 units.

For private non-landed homes sold in the week of Feb 7 to 14, the biggest loss of $1.16 million was incurred by the seller of a 947 sq ft unit at Scotts Square in prime District 9. The unit was bought from the developer at $3.96 million, or $4,184 psf, in September 2007 and sold at $2.8 million, or $2,956 psf, on Feb 7. The loss works out to 29%, or 4% a year over nine years.

There were 19 rental contracts for units of 900 to 1,000 sq ft at Scotts Square in 2H2016, with monthly rents averaging $6,511. This implies a 3% gross rental yield for the recently transacted unit.

Based on the matching of URA caveat data, both units transacted at Scotts Square so far this year were sold at a loss. A week earlier, on Feb 3, a 1,249 sq ft unit was sold at a $1.56 million loss, the biggest at Scotts Square so far. The seller bought the unit at $5.2 million, or $4,171 psf, from the developer in August 2007 and sold it at $3.65 million, or $2,923 psf.

All seven units at Scotts Square transacted last year, whose previous caveats could be traced, were also sold at a loss. 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.

For private non-landed homes sold in the week of Feb 7 to 14, the second-biggest loss of $980,000 was incurred by the seller of a 2,088 sq ft unit at Orchard Scotts in prime District 9. The unit was bought at $3.88 million, or $1,858 psf, in February 2012 and sold at $2.9 million, or $1,389 psf, on Feb 10. The loss works out to 25%, or 6% a year over five years.

There were two rental contracts for units of 2,000 to 2,100 sq ft at Orchard Scotts in 2H2016, with monthly rents at $9,200 and $12,000.

Based on the matching of URA caveat data, all seven units transacted at Orchard Scotts since 2015 were sold at a loss. The sellers sustained losses ranging from $823,923 to $2.4 million, with an average loss of $1.6 million, or 35%. Orchard Scotts is a 99-year leasehold condo completed in 2008. It comprises 387 units and is located within walking distance of the Newton MRT station.

This article first appeared in The Edge Property Singapore, a pullout of The Edge Singapore, on Feb 27, 2017.

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