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$1.4 mil loss at Reflections at Keppel Bay
Hefty losses in District 4
Hefty losses in District 4

Two sellers in District 4 sustained hefty losses from the sale of their houses on Aug 4. Both had previously purchased the units in 2007. The bigger loss of $1.4 million was traced to a 2,637 sq ft unit at Reflections at Keppel Bay. The seller purchased the unit from the developer in August 2007 at $2,125 psf and resold it at $1,593 psf. This is the biggest loss sustained at the project since April 2012, when a 4,747 sq ft unit changed hands at a loss of $1.58 million. The transaction also marks the eighth unprofitable deal at the project this year. Of the 16 homes sold at the project this year, only three were profitable. Reflections at Keppel Bay is a 99-year leasehold development comprising 1,129 units on Keppel Bay View. It was completed in 2011.

The smaller loss of $726,450 was from a 1,711 sq ft unit at The Oceanfront @ Sentosa. The unit was purchased in October 2007 at $2,125 psf in a sub-sale and resold at $1,525 psf. This marks the second 1,711 sq ft unit from the project sold at a loss this year. In April, a similar-sized unit on the sixth floor was disposed of at a $487,780 loss. The only profitable deal of the four units sold this year at The Oceanfront @ Sentosa was for a 1,216 sq ft unit, which netted a $99,200 gain for the seller. The 264-unit, 99-year leasehold development was completed in 2010.

A 2,637 sq ft unit at Reflections at Keppel Bay was sold at a $1.4 million loss

In the same week, Watten Estate Condominium, a 104-unit freehold development on Shelford Road in prime District 11, saw its most profitable transaction on Aug 3, when a 2,594 sq ft unit changed hands for a profit of $1.83 million. The unit was purchased in January 2003 at $393 psf and resold at $1,099 psf, reflecting an annualised gain of 8%. Prior to this, the most profitable deal at the project accrued to a 2,594 sq ft unit at block 36, which reaped $1.78 million in profit in October 2011. All homes sold at the project since 2010 have been profitable. Watten Estate Condominium was completed in 1983.

Separately, three condo units fetched profits exceeding $1 million in the week of Aug 2 to 8. The most profitable deal accrued to a 2,260 sq ft unit at Four Seasons Park, in which the seller amassed $1.86 million. He purchased the unit in June 2006 at $1,535 psf and resold it at $2,358 psf on Aug 5, which translates to an annualised gain of 4%. Of the two other units sold at Four Seasons Park this year, a 2,874 sq ft unit was resold at a profit of $2.55 million in May, while the profitability of the other, a 2,874 sq ft unit sold in April, could not be traced owing to a lack of data. Four Seasons Park is a 202-unit freehold development located near Orchard Boulevard in prime District 10.

The other two deals with million-dollar profits were in District 5. The bigger profit of $1.16 million was from a 1,841 sq ft unit at The Grandhill, a 53-unit freehold development on Pasir Panjang Hill. The unit on the fifth floor was resold at $1,103 psf, more than double its purchase price of $473 psf in April 2004. The seller had previously purchased the unit from the developer. The annualised gain works out to be 7%. In February, however, a 1,830 sq ft unit at the project was sold at a loss of $20,000, despite being held for close to eight years. So far, only two transactions at the project were traced to a loss. The Grandhill was completed in 2006.

The smaller profit of $1.1 million accrued to a 2,013 sq ft unit at Varsity Park Condominium. The unit was purchased in November 2004 at $374 psf and resold at $919 psf on Aug 3, reflecting an annualised gain of 8%. Of the 336 resale transactions at the condo so far, only four sustained losses, based on URA caveat records. All of the unprofitable homes were purchased from the resale market, and held for less than four years. Varsity Park Condominium is a 530-unit, 99-year leasehold development on West Coast Road. It was completed in 2008.

This article appeared in The Edge Property Pullout, Issue 742 (Aug 22, 2016) of The Edge Singapore.

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