Large freehold units fetch million-dollar profits

Four private non-landed homes fetched profits of more than $1 million each in the week of July 4 to 11, based on gains-and-losses analysis of URA caveat data. Three out of the four are large freehold units above 1,900 sq ft in size.

A 2,885 sq ft unit at Ardmore Park fetched the highest profit of $3.56 million for the week. It was bought for $5.74 million ($1,990 psf) from the developer in July 1996. After holding the property over two decades, the seller sold it at $9.3 million ($3,224 psf) on July 10. This translates into a 62% profit, or 2% a year.

Located in prime District 10, Ardmore Park is a freehold development by Wheelock Properties that was completed in 2001. It comprises 2,885 sq ft, four-bedroom units and penthouses of over 8,000 sq ft.

There have been eight profitable transactions at Ardmore Park this year, with sellers making an average of $3.14 million. Find the most affordable listing in the project at here.

Of the 10 transactions at Ardmore Park this year, eight were profitable, with profits averaging $3.14 million (59%). In 2016, six out of the seven transactions at Ardmore Park resulted in profits for the sellers, who made an average of $2.24 million (42%).

A 2,895 sq ft unit at Hillcrest Arcadia in prime District 11 fetched the second-largest profit of $1.24 million in the week of July 4 to 11. The unit was purchased for $840,000 ($290 psf) in November 2001 and sold at $2.08 million ($718 psf) on July 10. The profit worked out to 148%, or 6% a year over 16 years.

There have been six profitable transactions with an average profit of $708,333 (90%) at Hillcrest Arcadia this year. The sole unprofitable transaction so far this year resulted in a $220,000 (14%) loss. In 2016, there were no profitable transactions and three unprofitable transactions, with sellers making an average loss of $420,000 (15%).

Hillcrest Arcadia is a 99-year leasehold condominium project with 272 units. It was completed in 1980 and has a remaining lease of less than 60 years.

At Sheares Ville, a 1,475 sq ft unit changed hands for the third-largest profit of $1.13 million. The seller paid $1.08 million ($732 psf) for the unit in June 2005 and sold it at $2.21 million ($1,499 psf) on July 11. He made a 105% profit, or 6% a year over a holding period of 12 years. Completed in 2003, Sheares Ville is a 65-unit freehold project in prime District 10.

A 1,948 sq ft unit at Summerhill changed hands for a $1.01 million profit on July 4. The previous owner purchased the unit at $1.02 million ($524 psf) in March 2003 and sold it for $2.03 million ($1,042 psf) on July 4. The freehold Summerhill, by City Developments, was completed in 2002. The 406-unit project is located close to the Hillview MRT station on the Downtown Line.

On July 6, a 1,894 sq ft unit at The Solitaire was sold at the week’s biggest loss of $608,640. The seller bought it for $3.16 million ($1,667 psf) from the developer in April 2007 and sold it for $2.55 million ($1,346 psf). That worked out to a 19% loss, or 2% a year over 10 years.

Completed in 2009, The Solitaire is a freehold project at Balmoral Park in prime District 10. Find the most affordable listing in the project here.

Completed in 2009, The Solitaire is a freehold development with 59 units. It is located at Balmoral Park in prime District 10. The most recent profitable transaction at The Solitaire was in May 2013, when a 1,561 sq ft unit changed hands at a $110,600 (4%) profit. The seller bought the unit for $3 million ($1,928 psf) from the developer in April 2007 and sold it for $3.12 million ($1,999 psf).

There have been no profitable transactions since. As for the nine units sold at a loss since January 2014, the sellers sustained an average loss of $486,798 (16%).

This article appeared in The Edge Property Pullout, Issue 789 (July 24, 2017) of The Edge Singapore

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