Some Orchard Road Condos Are still Making Losses

Take Cuscaden Residences, for example. This year, the only two units sold at the Cuscaden Road condo changed hands at a loss. The 150-unit freehold development, by HPL Residences, is a 14-minute stroll from ION Orchard mall. A 2,077 sq feet, three-bedroom unit on a high flooring at Cuscaden Residences was cost $4.8 million ($ 2,311 psf) in May; the owner acquired it in 2011 for $5.5 million ($ 2,647 psf). Neighbouring condominiums consist of Marina One Residences, it is close to ION Orchard mall. A 1,421 sq feet, three-bedroom unit on a high flooring at Martin Modern Top was cost $ $3.9 million ($2,790 psf) in May. A smaller three-bedroom unit of 1,485 sq feet was sold for $3.12 million ($ 2,100 psf) in March. The mid-floor unit was additionally acquired seven years earlier, at $3.33 million ($ 2,242 psf). Dominic Lee, head of the luxury group at PropNex Real estate, associates the proprietors' losses to timing. "Their entry factor remained in 2011, when the marketplace was nearing peak rates, and also they offered the units at the beginning of one more upturn," he clarifies. "Do note provide that the home market now has far more controlled development, owing to the cooling measures in place."

" If they had claimed 2 more years, I'm rather sure they would certainly have got a greater rate than just what they obtained now," Lee mentions. Besides, the average transaction rate at Cuscaden Residences has actually climbed 15.9% y-o-y, from $1,918 psf in 2017 to $2,223 psf this year. On the other hand, opposite Cuscaden Residences, the 173-unit St Regis Residences, a 999-year leasehold job by City Developments, saw four purchases this year, which three sustained losses (after factoring in inflation) and also one made a $600,000 gain over a holding duration of 6 years. But the losing pattern does not hold for all advancements around. At the property Four Seasons Park on Orchard Blvd, the latest transaction was for a 2,260 sq feet, four-bedroom system that altered hands for $5.5 million ($ 2,433 psf) in April. The proprietor had purchased the system for $2.2 million ($ 973 psf) in 1999.

" Rates at Four Seasons Park follow the market pattern, yet in a rising market, costs climb higher," claims Suzie Mok, elderly director of investment sales at Savills Singapore. Better along Orchard Boulevard is 3 Orchard By-The-Park, a site that YTL Corp bought en bloc for $435 million in November 2007. PropNex's Lee, who is marketing the property, states YTL will certainly conduct a soft go for end-June, when 29 of the 77 systems in the high-end project will be for sale, at psf costs beginning with $4,000. The flurry of task around is bound to raise prices of neighbouring residences. Orchard Bel-Air, marketed by Savills' Mok, is currently trying a cumulative sale. The process is still underway, she says. However she stays confident as the Federal government Land Sales site on Cuscaden Road, which attracted a top proposal of $410 million, or $2,377 psf each story proportion, has actually helped to enhance prices in the vicinity.