Two condo sellers reap profits of more than S$2 mil

TWO sellers made profits of more than S$2 million (RM6.3 million) each in the week of Feb 21 to 28. Both transactions involve aged developments and the sellers had purchased their units at a bargain. Meanwhile, three other sellers netted profits of more than S$1 million that week.

The larger profit of S$2.25 million accrued to a 3,229 sq ft unit at Yong An Park, a freehold condominium on River Valley Road that was completed in 1986. The seller purchased the unit at S$1,037 psf in 2009, cheaper than similar-sized units that changed hands for between S$1,301 and S$1,380 psf that year.

He resold that unit for S$1,734 psf on Feb 22, higher than the S$1,672 psf fetched by a comparable unit in 2016. The profit margin works out to 67%, or 7% a year over eight years.

Yong An Park comprises 288 units ranging from one-bedroom condos of more than 1,000 sq ft to five-bedroom townhouses. The development has full facilities including a swimming pool, a gymnasium, two tennis courts, a table-tennis room and a squash court. It is located near Great World City shopping mall and next to the upcoming Great World MRT station of the Thomson-East Coast Line.

The smaller profit of S$2.2 million accrued to a 3,305 sq ft unit at One Chatsworth, a freehold development completed in 1976. The seller purchased the unit at S$1,241 psf in 2007, which was significantly cheaper than similar-sized units that were sold for S$1,362 psf to S$2,118 psf that year.

The unit, which is located on a low floor, was resold for S$1,906 psf on Feb 27, 5% higher than the S$1,816 psf fetched by a similar-sized unit on a high floor in 2015. The transaction yields a profit margin of 54%, or 4% a year over 10 years.

Separately, three transactions yielded profits of more than S$1 million each in the week of Feb 21 to 28. Two were in the prime districts and one in District 15.

The District 15 transaction was the sale of a 1,518 sq ft unit at The Sea View, a freehold condo on Amber Road. The unit was sold at S$1,647 psf on Feb 23, 14% higher than the S$1,450 psf fetched by a comparable unit on Feb 17 located directly seven floors below.

The seller bought the unit in a sub-sale in 2007 for just S$949 psf, resulting in a profit of S$1.06 million, or 74%. The earlier seller had flipped the unit four months after acquiring it from the developer at S$850 psf, reaping a profit of S$150,000. The Sea View is located within walking distance of Parkway Parade shopping mall and the upcoming Marine Parade MRT station. The 546-unit project was completed in 2008.

Meanwhile, the biggest loss in the week of Feb 21 to 28, totalling S$247,000, accrued to a 1,173 sq ft unit at The Cascadia, a freehold condo on Bukit Timah Road. The seller purchased the unit in 2013, at the height of the property market, for S$1,694 psf and resold it at S$1,483 psf on Feb 22. The loss works out to 12%, or 3% a year over four years.

Prices for similar-sized units have hovered at that level since 2015. In 2013, they averaged S$1,703 psf. Completed in 2010, The Cascadia is a 536-unit condo located near the King Albert Park MRT station.

This article first appeared in The Edge Property Singapore, a pullout of The Edge Singapore, on March 13, 2017.

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