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Contrasting fortunes in Punggol

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Three sellers in Punggol experienced contrasting fortunes recently. At Watertown, a 1,216 sq ft, three-bedroom unit was sold in a sub-sale on June 8 for $1.39 million, or $1,141 psf. The price was lower than what the seller had paid the developer in 2012 — $1.41 million, or $1,157 psf.

The transaction, therefore, resulted in a loss of about $19,000. The seller’s stamp duty (SSD) was not applicable in this case as the holding period had just crossed four years. There have been 16 sub-sale caveats at the 992- unit project so far, but we can only trace the previous caveats for 10 of them. Including SSD, six of the 10 sellers incurred losses ranging from $19,000 to $246,000. On the other hand, four sellers reaped profits ranging from $34,000 to $191,000. 

In contrast, two sellers at nearby A Treasure Trove made profits exceeding $100,000 in June. The two units sold had been held for less than five years. They fetched $1,020 and $1,081 psf respectively, a tad lower than the Watertown unit. However, the sellers had paid $876 and $920 psf for their units, which they bought direct from the developer in October 2011.

 

Two sellers at A Treasure Trove reaped profits while a seller at Watertown incurred a loss in June

 

There have been 67 sub-sale transactions at the 882-unit A Treasure Trove, but we can only trace the previous caveats for 61 of them. All 61 subsale transactions were profitable, with the gains averaging $146,000. If SSD is included, one deal was in the red.

A Treasure Trove was launched in September 2011 and 683 units were sold at a median price of $915 psf. Watertown was launched in January 2012 and 770 units were sold at a median price of $1,169 psf.

Watertown is part of a mixed development comprising Waterway Point, a suburban mall with a net lettable area of 370,824 sq ft. It is connected to the Punggol MRT station. A Treasure Trove is located within walking distance of the Punggol MRT station.

In another part of District 19, a 1,496 sq ft low-floor unit at Kovan Residences was sold at 2011 prices, or $989 psf. Kovan Residences is a 99- year leasehold 521-unit condominium located beside the Kovan MRT station.

In the Core Central Region, an 861 sq ft high-floor unit at The Sail @ Marina Bay was sold for a price that is on a par with 2008 levels, or $1,661 psf. In July 2008, an 861 sq ft unit directly two floors below found a buyer at $1,626 psf. According to Daphne Lean, ERA’s district division director, interest in the development comes mainly from investors.

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