Four transactions with more than S$1 million in profit each

FOUR private non-landed houses were each sold for more than S$1 million in profit in the week of March 28 to April 4.

On March 31, a 2,637 sq ft unit at The Draycott in prime District 10 fetched the week’s biggest profit of S$1.93 million. The seller had bought it at S$2.3 million, or S$872 psf, in December 2005 and sold it at S$4.23 million, or S$1,604 psf. The profit works out to 84%, or 6% a year over 11 years.

The same unit previously changed hands at a S$420,000 profit in December 2005. The previous seller had bought it at S$713 psf in August 2005 and made a 22% profit in four months.

So far this year, there have been three rental contracts for units ranging from 2,600 to 2,700 sq ft at The Draycott, with the monthly rent ranging from S$6,800 to S$7,200. The Draycott is a freehold development with 132 units. It was completed in 1980.

A 2,228 sq ft unit at Varsity Park Condominium fetched the second-biggest profit of S$1.66 million for the week. The unit was bought at S$890,910, or S$400 psf, from the developer in November 2004 and was sold at S$2.55 million, or S$1,144 psf, on March 31. The profit works out to 186%, or 9% a year over 12 years.

There were five rental contracts for units ranging from 2,200 to 2,300 sq ft at Varsity Park Condominium in 2H2016, with the monthly rent averaging S$5,740. This implies a 3% gross rental yield for the recently transacted unit. The leasehold Varsity Park Condominium is located opposite the Kent Ridge Bus Terminal and the National University of Singapore. It was completed in 2008 and has 530 units.

Based on the matching of URA caveat data, there have been 299 profitable and five unprofitable transactions at Varsity Park Condominium. The losses range from S$38,052 to S$180,000. The most recent unprofitable transaction happened in March this year when a 1,475 sq ft unit was sold at a S$180,000 loss. The seller had bought it at S$1.78 million, or S$1,207 psf, in September 2012 and sold it at S$1.6 million, or S$1,085 psf.

On March 29, a 3,240 sq ft unit at Wing on Life Garden in prime District 10 fetched the third-biggest profit of S$1.4 million for the week. The seller bought it at S$3.8 million, or S$1,173 psf, in May 2009 and sold it at S$5.2 million, or S$1,605 psf. The profit works out to 37%, or 4% a year over eight years.

Based on the matching of URA caveat data, the unit has changed hands four times. It was previously sold at S$1,080 psf in 1997, S$642 psf in 1998 and S$1,173 psf in 2009.

So far this year, there have been three rental contracts for units above 3,000 sq ft at Wing on Life Garden, with the monthly rent ranging from S$7,500 to S$8,000. Wing on Life Garden is a freehold development with 81 units. It was completed in 1982.

A 1,259 sq ft unit at Botanic Gardens View in prime District 10 fetched a S$1.1 million profit on April 4. The seller had bought it at S$900,000, or S$715 psf, in June 2000 and sold it at S$2 million, or S$1,588 psf. The profit works out to 122% or, 5% a year over 17 years.

There were two rental contracts for units ranging from 1,200 to 1,300 sq ft at Botanic Gardens View in 2H2016, with the monthly rent at S$2,800 and S$3,000. The freehold Botanic Gardens View is located across Cluny Road from Singapore Botanic Gardens. It is near the upcoming Napier MRT station and has 144 units.

Based on the matching of URA caveat data, there have been 25 profitable and four unprofitable transactions at Botanic Gardens View. The most recent unprofitable transaction happened in January 2006, when a 1,410 sq ft unit was sold at a S$30,000 loss. The seller had bought the unit at S$624 psf in April 2004 and sold it at S$603 psf.

This article first appeared in The Edge Property Singapore, a pullout of The Edge Singapore, on April 17, 2017.

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