The top losses for the period of July 14 to 19 were led by luxury condominium projects in prime District 9 that were launched during the last property boom in 2007 and completed a decade ago. The top loss was for the sale of a 2,852 sq ft, four-bedroom unit on the 47th floor of The Orchard Residences. Purchased for $13 million ($4,557 psf) in October 2007, it was sold for $9.68 million ($3,394 psf) on July 16. The seller therefore incurred a loss of $3.32 million, which is 26% or 2% annualised over a period of almost 13 years.
The Orchard Residences is a 175-unit, luxury development which is part of an integrated development sitting on top of the upscale ION Orchard shopping mall and Orchard MRT Station, which is slated to become an interchange for the North-South and Thomson-East Coast Lines.
The 47th-floor unit at The Orchard Residences was sold for $9.68 million ($3,394 psf) on July 16 (Photo: Samuel Isaac Chua/The Edge Singapore)
The project was developed jointly by CapitaLand and Hong Kong giant developer Sun Hung Kai Properties, and it was completed in 2010. While the mall has a prominent frontage at the junction of Orchard Road and Paterson Road, the entrance to the 54-storey The Orchard Residences is from Orchard Boulevard. All four penthouses at the 99-year leasehold development were snapped up at launch in July 2007 at prices ranging from $5,000 to $5,600 psf, with the biggest penthouse sold for $28 million.
Sun Hung Kai is Hong Kong’s biggest property developer by market capitalisation while CapitaLand is Singapore’s equivalent.
The second most unprofitable loss was for a 1,281 sq ft, three-bedroom unit on the 17th floor at Helios Residences, another luxury project in prime District 9. The unit was purchased for $4.84 million ($3,775 psf) 7½ years ago and sold for $2.98 million ($2,326 psf) on July 14. This translates to a loss of $1.86 million (38%), or an annualised loss of 6%.
Helios Residences is a luxury, 140-unit, freehold development on Cairnhill Circle, just off Cairnhill Road and near Orchard Road. The project was developed by Wing Tai Holdings and completed in 2011.
The third biggest loss of the week was for the sale of a unit at The Meyerise, a 239-unit, high-end condo in District 15. The 1,313 sq ft, three-bedroom unit on the 25th floor changed hands for $2.5 million ($1,904 psf) on July 15. The seller had purchased it for $2.77 million ($2,109 psf) three years earlier in May 2017, according to caveats lodged with URA Realis. The loss incurred is about $270,000 or 10%, which translates to an annualised loss of 3% over the holding period.
The freehold Meyerise was developed by Hong Leong Holdings and completed in 2014. It is located in the Meyer Road neighbourhood, which has traditionally been considered the “Nassim of the east”.
A four-bedroom unit at Grange Residences was sold at a 65% profit of $2.48 million on July 17.
Meanwhile, the top gains for the period were led by luxury condos in prime District 10. The top gain was for a unit at Grange Residences, a freehold luxury condo located at the corner of Grange Road and Tanglin Road. The 2,583 sq ft, four-bedroom unit on the 13th floor fetched $6.28 million ($2,431 psf) on July 17. It was purchased for $3.8 million ($1,471 psf) in May 2006. The seller made a $2.48 million gain, which translated to a 65% profit, or annualised rate of 4% over about 14 years.
The 146-unit Grange Residences is a redevelopment of the former Marco Polo Hotel by Wheelock Properties, which established itself as a luxury property developer following the successful launch of the 330-unit Ardmore Park condo in 1996. Like Ardmore Park, all units at Grange Residences are four-bedroom apartments. Sizes range from 2,583 to 2,853 sq ft. The project previewed in 2002 at prices ranging from $1,066 psf to $1,555 psf, and was launched in 2004 after its completion at prices from about $1,100 psf.
The project is located just across the road from Tanglin Mall and Hotel Jen Tanglin Singapore. It is also near Singapore’s “Embassy Row”, with the British High Commission, Embassy of the People’s Republic of China and Embassy of the United States nearby.
The second highest gain was for a unit at The Tessarina on Wilby Road, just off Bukit Timah Road in prime District 10. The seller had purchased the 1,313 sq ft, three-bedroom, 6th-floor unit for $1.1 million ($839 psf) in September 2002. It was sold for $2.33 million ($1,774 psf) on July 17. The $1.24 million or 113% capital gain translates to an annualised rate of 4% over the 18-year holding period.
The Tessarina is a 443-unit freehold property developed by WingTai Holdings and completed in 2003.
The third highest gain was for a 1,894 sq ft, three-bedroom unit at Pebble Bay on Tanjong Rhu Road. The ninth-floor unit was sold on July 17 for $2.6 million ($1,372 psf). The seller had purchased it almost 21 years ago for $1.47 million ($776 psf) in October 1999. The $1.13 million or 77% capital gain translates to an annualised rate of 3%.
Completed in 1997, the 510-unit Pebble Bay by CapitaLand was one of the first waterfront condominiums in Singapore. It overlooks the Marina Reservoir and is within a short walk of the Singapore Sports Hub and Kallang Wave Mall, which are integrated into the Stadium MRT Station on the Circle Line. When Tanjong Rhu MRT Station on the Thomson-East Coast Line is completed in 2023, it will be just a three-minute walk from Pebble Bay.
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