Resale of four-bedder at Marina Collection incurs $2.45 mil loss

/ EdgeProp Singapore |

July 6, 2023 5:00 AM SGT

SINGAPORE (EDGEPROP) - 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 unit was sold for $4.52 million ($1,622 psf) on June 27. The previous owner purchased it for $6.97 million ($2,500 psf) in January 2010. Hence, the latest transaction price is 35% lower, translating to a loss of $2.45 million over a 13½-year holding period.

The 99-year leasehold, 124-unit Marina Collection is adjacent to the One Degree 15 Marina at Sentosa Cove, and most units have direct views of the marina. Some units have views of both the marina and the sea beyond.

Marina Collection was developed by Indonesian conglomerate Lippo Group, and the project was completed in 2011. The 124-unit, low-rise development comprises three 4-storey blocks with three- to five-bedroom units of 1,873 to 4,725 sq ft.

The four-bedroom unit at Marina Collection was sold for $4.52 million ($1,622 psf) on June 27. (Picture: The Edge Singapore)

Prices have been slipping at Marina Collection since its completion 12 years ago. In July 2011, the average price was about $2,270 psf, but it has fallen to $1,784 psf this month.

There have been five resales at Marina Collection so far this year, and four have resulted in losses ranging from $1.6 million to $4.65 million. The most unprofitable transaction so far this year was for a 3,272 sq ft, three-bedroom unit that changed hands for $4.65 million ($1,421 psf) on April 3. The seller paid $9.29 million ($2,841 psf) for the unit in March 2008. As a result, they suffered a loss of $4.65 million (50%), which translates to an annualised profit of 4.5% over 15 years.

On the other hand, the most profitable resale transaction over the week was the sale of a 3,671 sq ft, four-bedroom unit at Starpoint on Pasir Panjang Road for $4 million ($1,090 psf). The unit had been purchased for $1.5 million ($409 psf) in April 2002. Thus, the seller raked in a profit of $2.5 million (167%), which translates to an annualised gain of 4.7% over around 21 years.

Starpoint is a boutique, 10-unit condo that was completed in 1980. The freehold development comprises a 10-storey apartment building. It is located on the fringe of the National University of Singapore’s Kent Ridge campus as well as Singapore Science Park II off Pasir Panjang Road.

The sale of a four-bedroom unit at Starpoint in Pasir Panjang raked in a $2.5 million profit. (Picture: Samuel Isaac Chua/The Edge Singapore)

There have been very few resale transactions at Starpoint. The last time units changed hands in the condo was in 2010, and prior to that, in 2009, based on caveats lodged. According to caveats, a 1,819 sq ft unit was sold for $1.2 million ($660 psf) in July 2009, followed by the sale of a 1,819 sq ft unit for $1.3 million ($715 psf) in July 2010. No matching caveats were found for these two transactions.

The sale of a 2,056 sq ft, three-bedroom unit at Costa Rhu for $3.08 million ($1,498 psf) on June 23 was the second most profitable resale during the week. Previously, the unit had fetched $1.05 million ($512 psf) in February 2006. As a result, the seller raked in a profit of $2.03 million (193%), which translates to an annualised profit of 6.4% over 17½ years.

Costa Rhu is one of a few condos along Tanjong Rhu with unblocked riverside views of the Kallang Basin. Unlike the other riverside condos such as Pebble Bay, Casuarina Cove, and Camelot-by-the-water which face the National Stadium, Costa Rhu is the only condo on Tanjong Rhu to face Beach Road and Nicoll Highway. This city-facing view includes landmarks such as Suntec City, South Beach, the upcoming Guoco Midtown, The Gateway, and The Concourse.

A three-bedder at Costa Rhu was sold for $3.08 million ($1,498 psf), at a $2.03 million profit, on June 23. (Picture: The Edge Singapore)

The 99-year leasehold Costa Rhu was completed in 1997. The condo is also the largest in the Tanjong Rhu area based on total number of units, with 737 units comprising two- to four-bedroom units of 990 to 2,648 sq ft, as well as penthouses of more than 3,000 sq ft.

Resale prices at Costa Rhu have swelled in recent years, rising from $1,275 psf in July 2020 to $1,572 psf this month. The most expensive unit in absolute terms to change hands at Costa Rhu was a 5,253 sq ft, three-bedroom penthouse that fetched $6.25 million ($1,190 psf) in August 2020. The penthouse was purchased for $5.75 million ($1,095 psf) in January 2016. Thus, the seller earned a profit of $500,000 (8.7%), which translates to an annualised profit of 1.83% over four years.

While resale prices at Costa Rhu have seen an uptick in recent years, its average price is about $1,494 psf, which is low compared to some of the surrounding condos. For example, Pebble Bay commands an average price of $1,715 psf, the highest in the Tanjong Rhu area, while Sanctuary Green and Water Place have average prices of $1,534 psf and 1,598 psf, respectively.

Check out the latest listings near Marina Collection, Starpoint, Costa Rhu, Pebble Bay, Casuarina Cove, Camelot-by-the-water, National University of Singapore

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