Business Times: Wed, Mar 28
THE most profitable subsale (in dollar terms) of 2011 generated a near $6.2 million profit. It involved a unit at Nassim Park Residences that was purchased in July 2008 for almost $18 million and sold in April last year for slightly over $24.1 million, according to Savills' analysis.
Nassim Park Residences accounted for four of 2011's 10 most profitable deals, followed by The Trillium at Kim Seng Road and The Orchard Residences, with two deals each.
In all, 62 subsales in 2011 generated a profit of $1 million or more. These included 10 units at The Orchard Residences and eight units each at Nassim Park Residences and Marina Bay Residences.
Savills examined URA Realis caveats data for subsale deals and tried to find previous caveat records for the same units; where it found matches, it worked out the holding period for the subsales and the profit or loss. The latter was calculated as the difference between sale and purchase prices, and took into account the seller's stamp duty but not the standard buyer's stamp duty, agent fees and other expenses.
In percentage terms, the two most profitable deals of the 2011 subsales involved two units at Southbank at North Bridge Road, which achieved returns of about 167 per cent and 142 per cent involving holding periods of 4.58 years and 4.75 years, respectively. The units were bought for $561,000 and $764,000 in 2006 and sold for $1.5 million and $1.85 million in January and April 2011, respectively.
Percentage-wise, the biggest loss among 2011 subsales was 45.9 per cent, recorded by a unit of 527 sq ft at Fifty-Two Stevens. It was bought for $873,000 in March 2010 and disposed of in August 2011 for $472,500.
The biggest absolute-dollar quantum subsale loss last year was about $1.3 million for a unit at The Cascadia in Bukit Timah. It was bought in Q4 2007 for about $7.3 million and sold in May last year for $6 million.
Source: Business Times