http://www.theedgeproperty.com.sg/co...idening-losses

Lingering spectre of narrowing gains, widening losses

By Tay Hock Meng / The Edge Property | December 4, 2015 10:00 AM MYT
Tags: Done DealsThe InterlaceSpottiswoode Park estateMarina Bay ResidencesThe Sail @ Marina Bay
Investing in property is equivalent to a trading game in the stock market, says Alan Cheong, head of research at Savills Singapore. “A lot depends on the investor’s point of entry and exit,” he says. The result is contrasting fortunes of owners selling units around the same time and within the same condominium development.

At The Interlace, for instance, a two-bedroom unit changed hands for $1.4 million ($1,301 psf), according to a caveat lodged on Oct 20. The 1,076 sq ft unit was purchased in October 2009 for $1.1million ($1,026 psf). Prior to the recent transaction, a four-bedroom plus-study unit was sold for $2.6 million ($845 psf) in early October. The 3,079 sq ft unit was last purchased for $2.87 million ($933 psf) in April 2011, according to an earlier caveat lodged.

While the seller of the two-bedroom unit saw a gross capital appreciation of 26.8% over six years, the seller of the four-bedroom unit recognised a 9.4% loss over 4½ years. Developed by a joint venture between CapitaLand and Hotel Properties Ltd, The Interlace is a 99-year leasehold condo located on Depot Road that comprises 1,040 units. The project was completed in 2013.

Sitting at the fringe of Tanjong Pagar is Spottiswoode Park estate. At one of the privatised HUDC blocks on Spottiswoode Park Road, a 1,270 sq ft five room unit on the 20th floor was sold for $800,000 ($630 psf), according to a caveat lodged on Oct 20.The unit last changed hands for $1.03 million ($811psf) in August 2013, according to an earlier caveat lodged. This translates into a 22.3% or $230,000 loss. If the seller’s stamp duty of 8% is taken into consideration, the loss would widen to $294,000, estimates Cheong.



A five-room flat at a privatised HUDC block in Spottiswoode Park changed hands for $800,000 ($630 psf)





“The thin transaction volume of the flats at Spottiswoode Park estate might have compelled the seller to accept the low offer price made by the buyer,” he reckons.

Now, new condos such as Spottiswoode Residences, 18 Spottiswoode and Spottiswoode Suites have sprung up. But the original Spottiswoode Park estate contained houses built by the Port of Singapore Authority for its staff that were completed in1975. Many of these flats were handed over to HDB in 1979, while four blocks were privatised. They were blocks 101, 102, 105 and 107. The unit transacted recently is located in block 107.



Non-landed developments on Spottiswoode Park Road


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