Seller of Seascape unit in Singapore makes S$3.8 mil loss

On July 24, a 4,069 sq ft unit at Seascape in Sentosa Cove was sold at a S$3.8 million (RM12 million) loss. The seller purchased the unit from the developer at S$12.8 million (S$3,145 psf) in May 2010. He sold it for S$9 million (S$2,212 psf), which translates into a loss of 30%, or 5% a year over a holding period of seven years.

A day later, another seller at Seascape sold a 2,174 sq ft unit at a S$2.05 million loss. He bought the unit for S$5.85 million (S$2,690 psf) from the developer in April 2010 and sold it for S$3.8 million (S$1,748 psf). The loss works out to 35%, or 6% a year over a seven-year holding period.

Based on the matching of URA ­caveat data, there have been no profit­able transactions and six unprofitable transactions at Seascape so far. The biggest loss involved a 4,069 sq ft unit that was sold at a S$6.6 million loss on Feb 7. The previous owner, a Russian national, bought it from the developer at S$12.8 million, or S$3,146 psf, in June 2010. The unit was put up for mortgagee sale at an auction in ­January this year at an opening price of S$6.8 million, but found no buyer. It was subsequently sold at S$6.2 million, or S$1,524 psf, by private treaty.

The Feb 7 transaction also marked the biggest loss so far for a condo at Sentosa Cove. The second- and third-biggest losses at Sentosa Cove were also traced to Seascape, an eight-storey seafront project comprising 151 units. The 99-year leasehold development was completed in 2011.

In 1H2017, there were 11 unprofit­able condo transactions at Sentosa Cove. Losses averaged S$1.12 million (16%). In 1H2016, there were ­seven unprofitable transactions, with ­losses averaging S$1.48 million (26%). There were 10 profitable transactions in 1H2017, with an average profit of S$471,205 (23%). In 1H2016, there were three profitable transactions with profits averaging S$774,747 (33%).

Meanwhile, the third-biggest loss of S$468,000 in the week of July 18 to 25 involved a 1,862 sq ft unit at Starlight Suites. It was bought at S$3.84 million (S$2,376 psf) in Novem­ber 2011 and sold for S$3.37 million (S$1,809 psf) on July 21. This translates into a 12% loss, or 2% a year over a holding period of almost six years.

Starlight Suites is a freehold ­project on River Valley Close. Completed in 2014, the 35-storey ­tower comprises 105 units. So far, there have been four resale transactions at Starlight Suites, all four ­of which resulted in ­losses. The average loss was S$271,174, or 11%.

On a brighter note, three private non-landed homes fetched profits in excess of S$1 million. The seller of a 1,528 sq ft unit at ­Pacific Mansion realised a S$1.23 million profit, the largest of the week. He purchased the unit for S$688,000 (S$450 psf) in April 1998 and sold it for S$1.92 million (S$1,256 psf) on July 24. This translates into a 179% gain, or 5% a year over 19 years. ­Pacific Mansion is a 288-unit ­freehold apartment on River Valley Close in prime District 9.

A 1,744 sq ft unit at Ridgewood, a 463-unit, 999-year leasehold devel­opment on Mount Sinai Rise in prime District 10, fetched the second-highest profit in the week. The property was bought in May 1999 at S$858,000 (S$492 psf) and changed hands for S$1.9 million (S$1,090 psf) on July 20. This resulted in a profit of S$1.04 million, which translates into a 121% gain, or 4% a year over an 18-year holding period.

So far this year, there have been one unprofitable and two profitable transactions at Ridgewood. On Jan 26,
the seller of a 1,399 sq ft unit incurred a S$350,000 (18%) loss. On May 18, a 1,744 sq ft unit was sold for a S$1.09 million (133%) profit.

 At Mandarin Gardens, a 2,013 sq ft unit fetched a S$1.02 million ­profit on July 21. The previous owner bought the unit for S$630,000 (S$313 psf) in June 2005 and sold it for S$1.65 million (S$820 psf). This works out to a 162% profit, or 8% a year over a holding period of 12 years.

Completed in 1986, Mandarin ­Gardens is a 99-year leasehold condo on Siglap Road in District 15. So far this year, there have been 18 ­profit­able and five unprofitable transactions at the project. The average profit was S$399,250, or 67%, and the ave­rage loss was S$135,600, or 11%.

This article first appeared in The Edge Property Singapore, a pullout of The Edge Singapore, on Aug 7, 2017.

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