Profit of S$2.15 million at High Point

ON March 17, a 2,885 sq ft unit at High Point in prime District 9 was sold at a S$2.15 million (RM6.78 million) profit. The seller bought it at S$1.85 million, or S$641 psf, in January 2003 and sold it at S$4 million, or S$1,386 psf. The profit works out to 116%, or 6% a year over 14 years.

Last June, a 2,928 sq ft unit at High Point was sold at a S$1.67 million profit. It was bought at S$2.28 million, or S$779 psf, in November 1997 and was sold at S$3.95 million, or S$1,349 psf. The profit works out to 73%, or 3% a year over a holding period of nearly 19 years.

There were two rental contracts for units ranging from 2,800 to 2,900 sq ft at High Point in 2H2016, with monthly rent at S$6,600 and S$6,900. The freehold High Point is located on Mount Elizabeth. It was completed in 1974 and comprises 59 apartment units.

A 1,615 sq ft unit at Fifth Avenue Condominium in prime District 10 fetched the second-biggest profit of S$1.36 million for private non-landed houses sold in the week of March 14 to 21. The seller bought the unit at S$1.24 million, or S$765 psf, in April 1999 and sold it at S$2.6 million, or S$1,610 psf, on March 17. The profit works out to 110%, or 4% a year over 18 years.

The same unit previously changed hands at a S$741,475 loss in 1999. The previous seller bought it at S$1.98 million, or S$1,224 psf, in September 1997. The loss works out to 38%, or 26% a year.

So far this year, there are two rental contracts for units ranging from 1,600 to 1,700 sq ft at Fifth Avenue Condominium, with monthly rent at S$4,750 and S$5,000. The freehold Fifth Avenue Condominium is located within walking distance of the Sixth Avenue MRT station. It was completed in 1998 and comprises 70 units.

On March 16, a 1,313 sq ft unit at The Sail @ Marina Bay was sold at a S$570,000 loss. The seller bought it at S$2.69 million, or S$2,049 psf, in October 2010 and sold it at S$2.12 million, or S$1,615 psf. The loss works out to 21%, or 4% a year over six years.

The same unit has changed hands thrice so far. The first seller bought it at S$1,115 psf from the developer in 2005 and sold it at S$1,379 psf in a sub-sale in 2006, reaping a profit of S$345,680. The subsequent seller reaped an S$880,000 profit when the unit was sold at S$2,049 psf in 2010.

There were 11 rental contracts for units ranging from 1,300 to 1,400 sq ft at The Sail @ Marina Bay in 2H2016, with monthly rents averaging S$5,832. This implies a 3% gross rental yield for the unit, based on the recently transacted price of S$2.12 million.

Also at The Sail @ Marina Bay, a 1,851 sq ft unit was sold at a S$1.21 million profit on March 17. It was bought at S$2.49 million, or S$1,345 psf, in July 2006 and was sold at S$3.7 million, or S$1,999 psf. The profit works out to 49%, or 4% a year over nearly 11 years.

The same unit had changed hands at a S$596,328 profit in 2006. The previous seller bought it at S$1,023 psf from the developer in 2004 and sold it at S$1,345 psf in a sub-sale in 2006.

There were four rental contracts for units ranging from 1,800 to 1,900 sq ft at The Sail @ Marina Bay in 2H2016, with monthly rents averaging S$7,975. This implies a 3% gross rental yield for the unit, based on the recently transacted price of S$3.7 million.

Prices at The Sail @ Marina Bay rose from an average of S$959 psf in 2004 to peak at S$2,387 psf in 2011. So far this year, there have been 12 transactions at an average price of S$1,893 psf. The Sail @ Marina Bay is located close to the Downtown MRT station and within walking distance of the Raffles Place station. The leasehold development was completed in 2008. It comprises 1,111 apartment units.

This article first appeared in The Edge Property Singapore, a pullout of The Edge Singapore, on April 3, 2017.

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