Some luxury homes changing hands for tidy profits

RESALE activity might be slowing for luxury homes, but some owners have managed to make a tidy pile from their Orchard Road homes this quarter.

Two units at the coveted Ardmore Park project by Wheelock Properties each changed hands for over $2 million in profit last month, despite the shrinking pool of foreign buyers who have supported demand in this segment.

One unit bought in October 1999 for $1,543 per sq ft (psf) or $4.45 million was sold on Nov 18 for $2,524 psf – a profit of $2.83 million. A second unit that was bought was bought in August 2006 for $2,115 psf or $6.1 million went for $2,843 psf or $8.2 million – a gain of $2.1 million.

All 330 units at the project measure 2,885 sq ft.

R’ST Research director Ong Kah Seng, director noted that profits in the high-end residential segment tend to be “specific to the development” in today’s sluggish market. “What Ardmore Park has over other properties is that the sizes of the units are the same, and it suggests that the owners are typically wealthier, if they can afford the large units,” said Mr Ong. “It’s a true-blue, high-end development, because luxury properties developed in the past five years might be in exciting locations, but they tend to have a mixture of unit sizes and a different profile of owners.”

A 1,335 sq ft apartment at the 274-unit Tanglin Park in upscale Ridley Park went for $1,924 psf or $2.57 million on Nov 7 after selling in March 2009 for $1.5 million – a profit of $1.07 million.

However, a handful of homes in the coveted residential district have not been spared the waning market sentiment and have been hit by hefty losses. A 2,852 sq ft flat at the 164-unit Grange Residences sold for $2,612 psf or $7.45 million on Nov 12 after being bought for $8.1 million in May 2010 – a loss of $650,000.

And a 3,175 sq ft apartment at Nassim Park Residences in the prestigious Nassim Road residential enclave was bought at $3,464 psf or $11 million in April 2010 and sold for $10.7 million on Oct 9 – a loss of $300,000.

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