Loss of $840,000 at The Oceanfront @ Sentosa Cove as prices dip below $1,300 psf

The seller of a 1,894 sq ft unit at The Oceanfront @ Sentosa Cove incurred the biggest loss for the week of June 20 to 27. He bought it in a subsale for $3.3 million ($1,742 psf) in January 2010. The three-bedroom- plus-study unit on the eighth floor was last put up for auction by ET&Co in May with an opening price of $2.65 million ($1,399 psf). But it was withdrawn, as there were no bids. On June 23, it was sold for $2.46 million ($1,299 psf) by private treaty. The $840,000 loss is the second-highest at The Oceanfront @ Sentosa Cove this year. It translates into a 25% loss, or 4% a year over a seven- year holding period.

Based on URA caveat data, the first owner of the unit bought it from the developer for $2.4 million ($1,271 psf) in August 2006. He made an $891,660 profit when he sold it for $1,742 psf in January 2010, after a 3½- year holding period. The profit was 37%, or 9% a year.

The 264-unit The Oceanfront @ Sentosa Cove was completed in 2010. Find the most affordable listing in the project here

With the exception of a 1,647 sq ft unit that changed hands at $1,150 psf in March 2016, prices at The Oceanfront @ Sentosa Cove have not fallen below the $1,300 psf mark since 2009. Six of the eight units that changed hands at The Oceanfront @ Sentosa Cove this year were sold at a loss. The biggest loss of $1.25 million this year involved the sale of a 2,788 sq ft unit for $4.48 million ($1,607 psf) in June 2017. The previous owner bought it for $5.73 million ($2,055 psf) in April 2015 and incurred a 22% loss, or 11% a year over two years. The 264-unit Oceanfront @ Sentosa Cove was completed in 2010.

A 1,604 sq ft, three-bedroom unit at The Seafront on Meyer in District 15 was sold for the second-biggest loss of $517,400 in the week. The previous owner bought it for $2.97 million ($1,850 psf) in October 2011 and sold it for $2.45 million ($1,528 psf) on June 21. He made a loss of 17%, or 3% a year over a 5.6-year holding period. This transaction also marks the biggest loss of the three unprofitable transactions at the 327-unit The Seafront on Meyer this year. The freehold condominium is located near the upcoming Katong Park MRT station and was completed in 2010.

A 1,227 sq ft unit at Twin Regency was sold for a $1.18 million profit on June 27. Find the most affordable listing in the project here

Meanwhile, the seller of a 1,227 sq ft, three-bedroom unit at Twin Regency in District 3 reaped the largest profit for the week. He bought the unit from the developer for $868,000 ($707 psf) in June 2004 and sold it for $2.05 million ($1,671 psf) on June 27. The $1.18 million profit translates into 136%, or 7% a year over 13 years.

Based on URA caveat data, there have been 176 profitable transactions, with an average profit of $425,340 (44%), and four unprofitable transactions, with an average loss of $79,625 (7%) at Twin Regency so far. Located near Tiong Bahru MRT station, the 234-unit Twin Regency is a freehold condo developed by UOL Group and completed in 2007.

This article appeared in The Edge Property Pullout, Issue 787 (July 10, 2017) of The Edge Singapore.