Hefty losses in District 10

Two condo units in prime District 10 were offloaded at losses of more than a million dollars each in the week of Oct 25 to Nov 1. The bigger loss of $1.8 million came from a 3,671 sq ft penthouse at Orange Grove Residences off Stevens Road. The fifth-floor unit fetched $6.1 million, or $1,662 psf, on Oct 27, 22% below the purchase price of $2,143 psf paid to the developer in February 2007. The seller incurred an annualised loss of 3% after having held the property for close to 10 years.

This is the second-biggest loss at Orange Grove Residences historically, after the sale of another penthouse at a $1.8 million loss in 2013. All resale transactions in the project over the past six years, where the previous transaction could be traced, had been unprofitable, including the four sold this year. The smallest loss incurred this year was $846,500, from the sale of a 2,250 sq ft unit in March.

The smaller loss in District 10 in the week amounted to $1.3 million. It accrued to a 2,756 sq ft unit at St Regis Residences Singapore. The seller had purchased the 15th-floor unit from the developer at $2,703 psf. After a 10-year holding period, the unit changed hands at $6.1 million, or $2,214 psf, on Oct 31, reflecting an annualised loss of 2%. The 999-year leasehold condominium on Tanglin Road has witnessed a streak of unprofitable deals since 2012. Of the six units sold this year, only two were profitable. One was sold at a $200,000 profit, while the other, a 5,543 sq ft unit sold in February 2016 at $2,706 psf, yielded a $3.3 million profit, the biggest gain achieved at the project in the past five years. The unit was previously purchased in February 2012 at $2,111 psf.

Meanwhile at Newton 21 in prime District 11, a 1,539 sq ft unit fetched a profit of $1.2 million, or an annualised gain of 6% over 12 years, on Oct 27. The seller had purchased the 13th-floor unit from the developer in 2004 at $812 psf and resold it at $1,611 psf, last month. This is the second deal at the 69-unit, freehold condo that resulted in a million-dollar profit this year. A 1,539 sq ft unit located one level below changed hands at a $1.1 million profit in August this year. Newton 21, on Newton Road, was completed in 2004.

In the landed housing segment, the biggest gain of $2.1 million in the week accrued to a semi-detached house at Thomson Ridge Estate. The seller, who held the property for more than 20 years, sold it at $3.7 million, or $1,245 psf on land area, on Oct 31, making an annualised profit of 4% from the deal. He had purchased the house, which sits on a 2,960 sq ft plot, in January 1996, at $524 psf on land area. The computed price gain for landed properties, however, excludes any renovation or refurbishment costs incurred by the seller.

Separately, a terraced house on Blandford Drive at Serangoon Garden Estate, fetched a profit of $1.5 million, or an annualised gain of 7% over 10 years, on Oct 28. The property, which sits on a 2,799 sq ft, 999-year leasehold plot, was sold at $3.2 million, or $1,142 psf on land area, almost double its purchase price of $595 psf in January 2007.

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Source: Theedgeproperty

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Hefty losses in District 10

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