The recent top three unprofitable deals on existing housing chalked up losses close to $5 million and all were from the high-end segment, according to new caveats released by the URA on April 15 and 19.

The top loss was for a 2,465 sq ft, four-bedroom unit at The Orchard Residences, a 99-year leasehold condominium above Orchard MRT station and ION Orchard. The seller sustained a $2.5 million loss, or an annualised loss of 7%, from the disposal of the unit at $7.5 million ($3,043 psf) early this April, a few months after the expiry of his four-year Seller’s Stamp Duty (SSD). He had bought the 40th-storey unit in January 2012 for $10 million, or $4,057 psf. This marks the second unprofitable deal in the development this year. In total, six of seven homes resold in The Orchard Residences since 2H2014 were unprofitable.

Separately, a 1,625 sq ft, three-bedroom apartment at The Sails @ Marina Bay was sold at a $1.45 million loss on March 31, making it the most unprofitable deal in the project to date. The 67th-floor unit was purchased for $5 million, or $3,076 psf, in December 2010 and resold for $3.55 million, or $2,184 psf.

Nevertheless, sales at the project have been brisk, averaging three per month in 1Q2016, with only four of the 11 units sold unprofitable.

As for the third-most unprofitable sale, the seller had incurred a loss of more than $900,000 despite holding the unit at Orange Grove Residences for close to nine years. He was the first owner, having bought his 2,207 sq ft unit direct from the developer in July 2007 at $4.6 million, or $2,088 psf. It was resold in April 2016 for $3.7 million, or $1,677 psf.

Due to the relatively high launch price of the Orange Grove, only one of the 14 transactions, where previous caveats can be traced, was profitable.

Meanwhile, the most profitable deal recently goes to a 7,503 sq ft penthouse at The Arcadia, in Bukit Timah. The seller pocketed a $1.9 million profit after holding the unit for close to 17 years, having purchased the unit in July 1999 for $3.2 million, or $427 psf, and resold it in April 2016 for $5.1 million, or $680 psf.

A four-bedroom unit at The Orchard Residences was recently sold at a $2.5 million loss

This article appeared in The Edge Property Pullout, Issue 726 (May 2, 2016) of The Edge Singapore.