Units in District 10 in Singapore fetch million-dollar profits

THE sellers of two units from two separate freehold condominium developments located in District 10 pocketed profits of more than S$1 million (RM3.1 million) each in the week of May 16 to 23.

The most profitable deal was the sale of a 2,885 sq ft, four-bedroom unit at Ardmore Park for a profit of S$3.25 million. The previous owner purchased the unit on the 15th floor for S$4.75 million (S$1,647 psf) in a sub-sale in February 2000 and sold it for S$8 million (S$2,773 psf) on May 18. This translates into a 68% gain over a 17-year holding period, or an annualised gain of 3%.

Based on caveats lodged with URA Realis, the unit’s first owner had bought it directly from the developer for S$5.05 million (S$1,750 psf) in August 1996 and suffered a S$297,235 loss when it was sold at S$4.75 million in February 2000. The loss translates into 6%, or 2% a year over 3½ years.

At Ardmore Park, there were 20 rental contracts for four-bedroom units measuring 2,800 to 2,900 sq ft in 1Q2017, with the monthly rent averaging $14,203. This implies a 2% gross rental yield, based on the recently transacted price of S$8 million.

The transaction on May 18 marks the fifth profitable transaction at Ardmore Park this year. Profits have ranged from S$2.45 million to S$4.6 million so far this year. There has been just one unprofitable transaction this year, with a S$70,000 loss. In 2016, there was one unprofitable transaction with a S$400,000 loss and six profitable transactions with profits ranging from S$180,000 to S$3.53 million.

Ardmore Park was developed by Wheelock Properties and completed in 2001. It comprises 2,885 sq ft, four-bedroom units and penthouses spanning 8,000 sq ft. Sitting on a sprawling eight-acre freehold land site, the project has been regarded as the standard for luxury residential projects.

The second-most profitable deal of the week involved a 2,056 sq ft, three-bedroom unit at Beaverton Court that fetched a S$1.29 million profit on May 17. The previous owner bought the ninth-floor unit for S$1.26 million (S$613 psf) in April 2006 and sold it for S$2.55 million (S$1,240 psf). He recognised a gain of 102%, or an annualised gain of 7% over a holding period of 11 years.

Based on caveats lodged with URA Realis, the previous seller of the unit purchased it at S$1.35 million (S$657 psf) in April 1995 and suffered a S$90,000 loss when he sold it in April 2006.

On April 22, 2016, a 2,056 sq ft unit on the 10th floor fetched a profit of $1.32 million. The previous owner purchased it for S$1.48 million (S$720 psf) in March 2000 and sold it for S$2.8 million (S$1,362 psf). This translates into a gain of 89%, or an annualised gain of 4% over 16 years.

There have been two rental contracts for three-bedroom units ranging from 2,000 to 2,100 sq ft at Beaverton Court so far this year, with monthly rents of S$4,600 and S$5,700 respectively. Beaverton Court is a freehold condo completed in 1984. It has 54 units and is located about 600m from the Dover MRT station.

The biggest loss of the week was the sale of a 3,864 sq ft, four-bedroom unit at The Interlace in District 4. The unit was purchased for S$3.52 million (S$910 psf) from the developer in May 2013 and sold at S$2.9 million (S$750 psf) on May 19. After a holding period of four years and four days, the seller suffered a S$615,070 loss. He would have been liable for a 4%, or $116,000, seller’s stamp duty if he had sold the unit just four days earlier.

This transaction marks the second unprofitable transaction at The Interlace this year. On March 15, a 2,131 sq ft unit was sold at a S$26,330 loss. Meanwhile, there have been five profitable transactions at The Interlace this year, with profits ranging from S$109,500 to S$490,400.

The Interlace is located on Depot Road, off Alexandra Road. This 99-year leasehold development with 1,040 units was designed by world-acclaimed archi­tect Ole Scheeren, who also designed other icons such as the China Central Television Headquarters in Beijing and the floating auditorium on Nai Pi Lae Lagoon in Thailand.

This article first appeared in The Edge Property Singapore, a pullout of The Edge Singapore, on June 5, 2017.

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