Units in District 10 fetch million-dollar profits

By Lin Zhiqin

/ The Edge Property |

June 2, 2017 3:00 PM SGT

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The sellers of two units from two separate freehold condominium developments located in District 10 pocketed profits of more than $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 $3.25 million. The previous owner purchased the unit on the 15th floor for $4.75 million ($1,647 psf) in a sub-sale in February 2000 and sold it for $8 million ($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 $5.05 million ($1,750 psf) in August 1996 and suffered a $297,235 loss when it was sold at $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 $8 million.

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

A 2,885 sq ft, four-bedroom unit at Ardmore Park fetched a profit of $3.25 million on May 18. Find the most affordable listing in the project here

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 $1.29 million profit on May 17. The previous owner bought the ninth-floor unit for $1.26 million ($613 psf) in April 2006 and sold it for $2.55 million ($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 $1.35 million ($657 psf) in April 1995 and suffered a $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 $1.48 million ($720 psf) in March 2000 and sold it for $2.8 million ($1,362 psf). This translates into a gain of 89%, or an annualised gain of 4% over 16 years.

The sale of a 2,056 sq ft, three-bedroom unit at Beaverton Court was the second-most profitable deal of the week. Find the most affordable listing in the project here

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 $4,600 and $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 $3.52 million ($910 psf) from the developer in May 2013 and sold at $2.9 million ($750 psf) on May 19. After a holding period of four years and four days, the seller suffered a $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 $26,330 loss. Meanwhile, there have been five profitable transactions at The Interlace this year, with profits ranging from $109,500 to $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.

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