Luxury apartments for $7 million

In the latest caveats for the week of Aug 28 to Sept 4, there were four transactions for apartments in the $7 million range, mainly for existing freehold projects in the luxury prime districts of 9 and 10.

One is a 3,477 sq ft second-floor unit at the 32-year-old Nassim Mansion, a luxury freehold 72-unit development on Nassim Hill in a neighbourhood of Good Class Bungalows. It was sold for $7.5 million ($2,157 psf), according to a caveat lodged with URA Realis on Sept 3. The previous owner had purchased it for $7.45 million ($2,143 psf) just two years ago, according to a transaction in May 2007. The owner who had sold him the unit made a 58.5% gain as he had purchased it just a year earlier for $4.7 million ($1,352 psf). The seller himself had made a 68% gain as he in turn had purchased it for $2.8 million ($805 psf) in September 2001. This apartment has changed hands four times in eight years.

At Ardmore Park, which is still the bellwether for luxury projects, resale prices are once again at the $2,500 psf level. Most recently, a sixth-floor unit was sold for $7.2 million ($2,496 psf). This unit last changed hands in early 2007 for $6.3 million ($2,184 psf), thus providing the seller a 13.89% gain in over two years. The first owner bought the project at launch in 1997 for $5.14 million ($1,783 psf).

At Grange Residences, a 10th-floor, 2,852 sq ft unit recently sold for $7 million ($2,454 psf), giving the previous owner a 37% upside from his initial purchase price of $5.1 million ($1,788 psf) in 2006. Prior to that, the unit was purchased from the developer at launch for $3.59 million ($1,259 psf) in July 2004. This means the owner made a 42% gain from the sale in just two years.

Meanwhile, the St Thomas Suites twin tower, a 176-unit luxury condo at the top of St Thomas Walk off River Valley Road, is expected to receive its temporary occupation permit by end-2010. Developer Frasers Centrepoint Ltd launched the condo in early 2007 and it was fully sold within a few months. A 29th-floor, five bedroom 4,672 sq ft unit was sold in a sub-sale for $7.95 million ($1,702 psf) at end-August. However, this was 17.6% below the initial price, as according to a caveat lodged in April 2007, the previous owner had purchased the apartment at launch for $9.1 million ($1,949 psf).

Source: The Edge, 28 Sep 2009