Four-bedder at Marina Collection resale results in $2.45 million loss

, ,

Read related post: Q Investment Partners closes a multifamily housing fund worth $50 million

Q Investment Partners closes a multifamily housing fund worth $50 million

The most unprofitable resale transaction during the week of June 20 to 27 was the sale of a 2,788 sq ft, four-bedroom-plus-studio unit at Marina Collection on Cove Drive. The property was sold at $4.52 million ($1,622 per square foot) on the 27th of June. The previous owner bought the unit at $6.97 million ($2,500 per psf) in January 2010. This is why the latest purchase cost is 35% lower, which amounts to the loss that is $2.45 Million over 13 1/2-year period.

The Marina Collection is a 99-year leasehold with 124 units. Marina Collection is adjacent to the One Degree 15 Marina at Sentosa Cove, and most units are directly viewed towards the marina. Certain units overlook the marina as well as the ocean beyond.

Marina Collection was designed through Indonesian group Lippo Group, and the project was completed in. The 124-unit low-rise development comprises three blocks of four stories comprising three to five bedroom units that range from 1,873 to 4,725 square feet.

Prices have dropped in the Marina Collection since its completion 12 years ago. The month of July 2011 the median cost was around $2,270 psf however, it has dropped to $1,784 this month.

Five resales have occurred of the Marina Collection so far this year, and four of them have resulted in losses that range between $1.6 millions up to $4.65 million. The least profitable transaction thus far was for a 3,272 square feet, three-bedroom apartment that was sold at $4.65 million ($1,421 per square foot) the 3rd of April. The buyer paid $9.29 million ($2,841 per square foot) for the property in March 2008. The result was that they lost $4.65 millions (50%), which amounts to an annualised profit that was 4.5% over 15 years.

On the other hand one of the highest-profitable resales sale during the last week took place in the auction of a 3671 square 4 ft, four bedroom unit located at Starpoint located on Pasir Panjang Road for $4 million ($1,090 per square foot). The property was purchased at $1.5 million ($409 per square foot) at the end of April in 2002. This resulted profits in the amount of $2.5 millions (167%), which amounts to an annualized increase that was 4.7% over around 21 years.

Starpoint The Starpoint a luxury, 10-unit condo which was completed in the year 1980. The freehold development consists of an apartment building with a 10 storey height. It is situated at the outskirts of the NUS’s Kent Ridge campus as well as Singapore Science Park II off Pasir Panjang Road.

There have been only a handful of sales of resales at Starpoint. The most recent time units were sold within the condo was the year 2010 and before the year 2009 in accordance with caveats filed. According to caveats the 1,819 square foot property was purchased to a buyer for $1.2 million ($660 per square foot) during July of 2009. Then, there was an offer of 1,819 square ft unit at $1.3 million ($715 per square foot) in July of 2010. There were no caveats that match for these two transactions.

The purchase of a 2,056 square feet 3 bedroom unit in Costa Rhu for $3.08 million ($1,498 per square foot) on June 23rd was the second most profitable resale of the week. Prior to that, the unit been sold for $1.05 million ($512 per square foot) in February. The seller earned an income that was $2.03 millions (193%), which is equivalent to an annualized gain that was 6.4% over 17 1/2 years.

Costa Rhu is one of only a handful of condos along Tanjong Rhu with unblocked riverside views of the Kallang Basin. In contrast to other riverside condominiums like Pebble Bay, Casuarina Cove, and Camelot-by-the-water that face to the National Stadium, Costa Rhu is the only condominium on Tanjong Rhu to face Beach Road and Nicoll Highway. The view from the city is comprised of landmarks like Suntec City, South Beach and Guoco, as well as the planned Guoco Midtown, The Gateway, and The Concourse.

This 99-year leasehold Costa Rhu was completed in 1997. The condominium is also the biggest in that Tanjong Rhu area based on the number of units comprising 737 units, which range from two-to-four-bedroom units with a range of 990- 2,648 square feet, in addition to penthouses that are over 3,000 square feet.

The prices for selling in Costa Rhu have swelled in the past few years, ranging from $1,275 per square foot in July 2020 to $1,572 per square foot in the month of. The most expensive property in absolute terms that changed ownership at Costa Rhu was a 5,253 sq ft penthouse with three bedrooms which sold for $6.25 million ($1,190 per square foot) during August of 2020. The penthouse was bought at $5.75 million ($1,095 per square foot) at the beginning of January in 2016. This means that the seller made profits in the amount of $5000 (8.7%), which amounts to an annualised income in the range of 1.83% over four years.

While resales in Costa Rhu have seen an rise in recent times however, the average cost is $1,494 per square foot that’s a bit lower than certain condos that are located nearby. For instance, Pebble Bay commands an average price of $1715 psf which is the highest price within the Tanjong Rhu area, while Sanctuary Green and Water Place are both priced at $1,534 per sq ft and 1,598 per sq ft and 1,598 psf, respectively.