Ardmore Park unit makes $4.6 mil profit

Asdmore Park

ON Feb 9, a 2,885 sq ft unit at Ardmore Park in prime District 10 was sold at a $4.6 million profit. The gain works out to 94%, or 5% a year over 14 years. The previous owner bought it at $4.9 million, or $1,699 psf, in September 2002 and sold it at $9.5 million, or $3,293 psf.

This was the first transaction at Ardmore Park this year. The next most recent transaction, in December 2016, resulted in a $3.18 million profit for the seller. The 2,885 sq ft unit was bought at $6.4 million, or $2,219 psf, in August 2006 and sold at $9.58 million, or $3,321 psf. The profit works out to 50%, or 4% a year over 10 years.

There were 58 rental contracts for units of 2,800 to 2,900 sq ft at Ardmore Park in 2H2016, with monthly rents averaging $14,598. This implies a 2% gross rental yield for the recently transacted unit. Completed in 2001, Ardmore Park is a freehold condominium comprising 330 units.

For private non-landed homes sold in the week of Feb 7 to 14, the biggest loss of $1.16 million was incurred by the seller of a 947 sq ft unit at Scotts Square in prime District 9. The unit was bought from the developer at $3.96 million, or $4,184 psf, in September 2007 and sold at $2.8 million, or $2,956 psf, on Feb 7. The loss works out to 29%, or 4% a year over nine years.

There were 19 rental contracts for units of 900 to 1,000 sq ft at Scotts Square in 2H2016, with monthly rents averaging $6,511. This implies a 3% gross rental yield for the recently transacted unit.

Based on the matching of URA caveat data, both units transacted at Scotts Square so far this year were sold at a loss. A week earlier, on Feb 3, a 1,249 sq ft unit was sold at a $1.56 million loss, the biggest at Scotts Square so far. The seller bought the unit at $5.2 million, or $4,171 psf, from the developer in August 2007 and sold it at $3.65 million, or $2,923 psf.

All seven units at Scotts Square transacted last year, whose previous caveats could be traced, were also sold at a loss. The sellers sustained losses ranging from $647,088 to $1.2 million, with an average loss of $910,579, or 24%. Scotts Square is a mixed-use development completed in 2011. It has 338 freehold residential units and is located within walking distance of the Orchard MRT station.

For private non-landed homes sold in the week of Feb 7 to 14, the second-biggest loss of $980,000 was incurred by the seller of a 2,088 sq ft unit at Orchard Scotts in prime District 9. The unit was bought at $3.88 million, or $1,858 psf, in February 2012 and sold at $2.9 million, or $1,389 psf, on Feb 10. The loss works out to 25%, or 6% a year over five years.

There were two rental contracts for units of 2,000 to 2,100 sq ft at Orchard Scotts in 2H2016, with monthly rents at $9,200 and $12,000.

Based on the matching of URA caveat data, all seven units transacted at Orchard Scotts since 2015 were sold at a loss. The sellers sustained losses ranging from $823,923 to $2.4 million, with an average loss of $1.6 million, or 35%. Orchard Scotts is a 99-year leasehold condo completed in 2008. It comprises 387 units and is located within walking distance of the Newton MRT station.

Orchard Scotts

This article first appeared in The Edge Property Singapore, a pullout of The Edge Singapore, on Feb 27, 2017.

For more stories, download TheEdgeproperty.com pullout here for free.

from TheEdgeProperty.com http://www.theedgeproperty.com.my/content/1086628/ardmore-park-unit-makes-46-mil-profit

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