Resale at Marina Collection results in $2.59 mil loss

July 28, 2023

A streak of unprofitable resale transactions at Marina Collection in Sentosa Cove continues with the latest amounting to a $2.59 million (35%) loss when a 2,788 sq ft unit was sold for $4.8 million ($1,728 psf) on July 14. This sale also marked the most unprofitable transaction over the week of July 11 to 18. The unit had previously fetched $7.4 million ($2,657 psf) when it was bought in January 2008. The sale translates to an annualised loss of 2.7% over 15 years.

This marks the fifth resale at Marina Collection so far this year, and all recorded transactions have resulted in losses for their sellers. Losses have ranged from $1.6 million to a record $4.65 million. This record loss resulted when a 3,272 sq ft unit was sold for $4.65 million ($1,421 psf) on April 3 this year. It had previously fetched $9.3 million ($2,841 psf) in March 2008. The seller suffered an annualised loss of 4.5% over 15 years.

Marina Collection is a 99-year leasehold condo in the exclusive Sentosa Cove enclave. The 124-unit condo was developed by Indonesian conglomerate Lippo Group and completed in 2011. The low-rise complex consists of three 4-storey blocks with a mix of three- to five-bedroom units of 1,873 sq ft to 4,725 sq ft.

According to a tabulation of resale caveats by EdgeProp Singapore, unprofitable sales at Marina Collection outnumber the meagre number of profitable sales, with at least 17 unprofitable sales compared to just two profitable sales.

Moreover, prices have been slipping at the 99-year leasehold condo, from a peak of $2,830 psf in March 2011 to $1,728 psf this month.

The poor price performance at Marina Collection contrasts with its neighbouring 99-year leasehold condos that have sea-facing views, such as The Oceanfront @ Sentosa Cove ($1,870 psf), Cape Royale ($2,208 psf) and Seascape ($1,997 psf). Only Turquoise, another marina-facing condo in Sentosa Cove, has recorded a lower average selling price at about $1,518 psf.

On the other hand, the most profitable sale during the week occurred at Ardmore Park in prime District 10. A 2,885 sq ft unit on the 10th floor was sold for $12.8 million ($4,437 psf) on July 17, after it had been purchased for $8.8 million ($3,051 psf) in July 2017. As a result, the seller raked in a profit of $4 million (45%), which translates to an annualised gain of 6.5% over six years.

However, the most profitable resale at Ardmore Park so far this year was for another 2,885 sq ft unit, on the fourth floor, that changed hands for $13 million ($4,510 psf) on July 14. Previously, the unit was bought for $4.85 million ($1,681 psf) in December 2000. Thus, the seller earned a profit of $8.16 million (168%), which translates to an annualised gain of 4.5% over 22 years.

Ardmore Park is one of the luxury condos in the prestigious Ardmore Park neighbourhood in prime District 10. Other luxury condos in the Ardmore Park area include Sculptura Ardmore, Ardmore II and Ardmore III, as well as Le Nouvel Ardmore. Nearby on Nassim Road is the ultra-luxury project Les Maisons Nassim by Hong Kong-listed Shun Tak Holdings. The project was fully sold last month two years after its launch and notched an eye-watering average selling price of $5,559 psf.

Even though Ardmore Park was completed 22 years ago, it still commands one of the highest selling prices in the Ardmore Park area with units changing hands at prices from $4,437 to $4,510 psf, in the months from April to July 2023.

The second most profitable transaction during the week was the sale of a 2,992 sq ft unit at Gallop Green, a freehold condo on Woollerton Park in prime District 10. The unit fetched $7.22 million ($2,414 psf) on July 14; it had been bought for $4.19 million ($1,400 psf) in July 2009. As a result, the seller raked in a profit of $3.04 million ($72%), translating to an annualised profit of 4% over 14 years.

The July 14 transaction tops the list of most profitable resales at Gallop Green, superseding the previous record of $1.54 million (20%). That was for the sale of a 4,402 sq ft unit which changed hands for $9.25 million ($2,101 psf) in September last year. The unit had been purchased for $7.7 million ($1,750 psf) back in March 2011.

Gallop Green is one of a handful of condos in the Woollerton Park area, which is dominated by the Gallop Road/Woollerton Park and Cluny Hill Good Class Bungalow areas. Other condos in this vicinity include Gallop Gables and Spanish Village on Farrer Road; and on Farrer Drive, Sommerville Park, Pollen & Bleu and Somerville Grand.

The 53-unit Gallop Green was completed in 2002 and comprises a mix of two- to five-bedroom units of 2,917 to 5,102 sq ft. Prices have moved up moderately at Gallop Green from about $1,417 psf in July 2009 to $2,414 psf this month, based on URA caveats tabulated by EdgeProp Singapore.

Only one unit each at Gallop Green was sold on the secondary market in 2022 and 2021 the 4,402 sq ft unit in September last year, and a 3,563 sq ft unit that fetched $7.54 million ($2,116 psf) on May 27, 2021.

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