JUST SOLD: Unit at Ardmore Park fetched $3.3 mil profit

[reporter2]

http://www.theedgeproperty.com.sg/co...-33-mil-profit

JUST SOLD: Unit at Ardmore Park fetched $3.3 mil profit

By Tan Chee Yuen / The Edge Property | September 15, 2016


A 2,885 sq ft unit at Ardmore Park was sold for $8.2 million, or $2,843 psf on September 5. The units was bought for $4.89 million, or $1,695 psf in August 1996 and held for about 20 years. This translates into an annualised gain of 3%.

There were a total of five units sold at an average price of $2,852 psf so far this year. At the height of the market, units at Ardmore Park fetched above $3,500 psf. In January 2010, a 2,885 sq ft unit changed hands for $10.6 million, or $3,688 psf, making it the highest price per square foot achieved in the development.

Ardmore Park is a 330-unit condominium project, which sits on a sprawling eight acre freehold land site in in prime District 10. It was developed by Wheelock Properties and completed in 2001.

[stalingrad]

http://www.theedgeproperty.com.sg/co...-33-mil-profit

JUST SOLD: Unit at Ardmore Park fetched $3.3 mil profit

By Tan Chee Yuen / The Edge Property | September 15, 2016


A 2,885 sq ft unit at Ardmore Park was sold for $8.2 million, or $2,843 psf on September 5. The units was bought for $4.89 million, or $1,695 psf in August 1996 and held for about 20 years. This translates into an annualised gain of 3%.

There were a total of five units sold at an average price of $2,852 psf so far this year. At the height of the market, units at Ardmore Park fetched above $3,500 psf. In January 2010, a 2,885 sq ft unit changed hands for $10.6 million, or $3,688 psf, making it the highest price per square foot achieved in the development.

Ardmore Park is a 330-unit condominium project, which sits on a sprawling eight acre freehold land site in in prime District 10. It was developed by Wheelock Properties and completed in 2001.

Bad news is described as good news. Only in Singapore.

[teddybear]

You are right that it is bad news since price has dropped by about 23% !!!!!
However, it is good news indeed because price has dropped by 23% (because good bargain buy)!

Where in Singapore you can now buy properties that has dropped by 23% (or more) except in CCR?
Definitely not anywhere in OCR! Those HDB upgraders must be like........ with OCR private property prices still near their historical high (the highest price ever since Singapore come into existence)...........

However, does it mean that there will never be bargain in OCR?
Nah! Wait till 2020 or after, OCR private property prices sure CRASH like a stone! Wait and you will see.........

Bad news is described as good news. Only in Singapore.

[stalingrad]

You are right that it is bad news since price has dropped by about 23% !!!!!
However, it is good news indeed because price has dropped by 23% (because good bargain buy)!

Where in Singapore you can now buy properties that has dropped by 23% (or more) except in CCR?
Definitely not anywhere in OCR! Those HDB upgraders must be like........ with OCR private property prices still near their historical high (the highest price ever since Singapore come into existence)...........

However, does it mean that there will never be bargain in OCR?
Nah! Wait till 2020 or after, OCR private property prices sure CRASH like a stone! Wait and you will see.........

It is amazing that the seller bought this condo in 1996, the year I arrived in Singapore, but has made only 3% per year. 3% is just barely above annual inflation. I have always thought that if one purchased a condo before year 2000, one would have made a fortune.

I guess the market has tanked, and tanked big time.

By the way, I arrived on June 22, 1996 in Singapore. At that time, Singapore was a much better place than it is today. A lot less crowded.

[Sandiwara]

Bad news is described as good news. Only in Singapore.

Agree.....

[Arcachon]

It is amazing that the seller bought this condo in 1996, the year I arrived in Singapore, but has made only 3% per year. 3% is just barely above annual inflation. I have always thought that if one purchased a condo before year 2000, one would have made a fortune.

I guess the market has tanked, and tanked big time.

By the way, I arrived on June 22, 1996 in Singapore. At that time, Singapore was a much better place than it is today. A lot less crowded.

Did not know property investment P & L so easy to calculate.

[stalingrad]

Did not know property investment P & L so easy to calculate.

I obviously did not include the rent the owner could collect every year. I was just showing that owning properties is not the easier way to get rich, as many Singaporeans have believed.

[Arcachon]

I obviously did not include the rent the owner could collect every year. I was just showing that owning properties is not the easier way to get rich, as many Singaporeans have believed.

What happen when you include the rent the owner collected over the years.

[star]

The same goes with punggol hdb when it first launched and mature estate hdb which one more gain. Always buy the cheapest. In future if Tengah area first launch it will be very good buy.

[Sandiwara]

What happen when you include the rent the owner collected over the years.

Then need to include maintenance fee, bank interest, property Tax and Inflation.

[stalingrad]

Then need to include maintenance fee, bank interest, property Tax and Inflation.

Exactly. But the point I was making is that everyone thinks that if someone bought a property before 2000, it must have provided spectacular capital gains. This case shows that the annual gain barely cover inflation. Indeed, the owner may have received rental income for 20 years. But the overall gain remains far less than spectacular.

[Newbie1]

If singapore remains not so crowded and much less stressful and fewer people wanting to come,

properties ans salaries would not be so high

It is amazing that the seller bought this condo in 1996, the year I arrived in Singapore, but has made only 3% per year. 3% is just barely above annual inflation. I have always thought that if one purchased a condo before year 2000, one would have made a fortune.

I guess the market has tanked, and tanked big time.

By the way, I arrived on June 22, 1996 in Singapore. At that time, Singapore was a much better place than it is today. A lot less crowded.

[star]

Exactly. But the point I was making is that everyone thinks that if someone bought a property before 2000, it must have provided spectacular capital gains. This case shows that the annual gain barely cover inflation. Indeed, the owner may have received rental income for 20 years. But the overall gain remains far less than spectacular.

Hi, the thing is i doubt the owner paid in full. Maybe just 20% down payment? If he paid only 20% the gain is alot. That is where leverage is the most powerful tool.

[teddybear]

In your scenario, I think OCR private property prices likely CRASH big time in future! (since even at current moment OCR private property prices (which is almost close to CCR prices) is at like >14x the median salary of OCR property buyers?)
To achieve 5x ratio, need to CRASH by more than half?

However, CCR property prices are not determined by salaries, so the effect is different - less crowded, more pleasant, more greenery, better living - all these will be better living environment for the rich to migrate to Singapore........

If singapore remains not so crowded and much less stressful and fewer people wanting to come,

properties ans salaries would not be so high

[Sandiwara]

In your scenario, I think OCR private property prices likely CRASH big time in future! (since even at current moment OCR private property prices (which is almost close to CCR prices) is at like >14x the median salary of OCR property buyers?)
To achieve 5x ratio, need to CRASH by more than half?

However, CCR property prices are not determined by salaries, so the effect is different - less crowded, more pleasant, more greenery, better living - all these will be better living environment for the rich to migrate to Singapore........

any one can have what ever theory or perspective but reality is reality. Reality is OCR as it is today. No body know tomorrow for sure otherwise Nokia phone will never be bought by Microsoft. If tomorrow follow today rule than live is so predictable.