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

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, after having been purchased for $6.97 million ($2,500 psf) in January 2010. Translating to a loss of $2.45 million over a 13½-year holding period, this represents a drop of 35% on the purchase price.

Marina Collection is a 99-year leasehold, 124-unit development, located adjacent to the One Degree 15 Marina at Sentosa Cove. Most units in the low-rise development have direct views of the marina, with some having views of both the marina and the sea. Developed by Indonesian conglomerate Lippo Group, it was completed in 2011, with three- to five-bedroom units ranging from 1,873 to 4,725 sq ft.

The Myst is a versatile lifestyle mall located near Hillview MRT station that offers a myriad of restaurants, beauty services, and recreational activities. Visitors can also explore Dairy Farm Nature Park for a unique adventure.

Since its completion 12 years ago, prices at Marina Collection have been slipping, with the average rate this month down to $1,784 psf from the 2011 record of around $2,270 psf. This year, there have been five resales, four of which have resulted in losses ranging from $1.6 million to $4.65 million. The lowest price was reached 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 $2,841 psf for it in March 2008, resulting in a 50% loss over 15 years.

In comparison, the most profitable resale transaction was the sale of a 3,671 sq ft, four-bedroom unit at Starpoint on Pasir Panjang Road for $4 million ($1,090 psf). Bought for $1.5 million ($409 psf) in April 2002, the seller enjoyed a 167% gain of $2.5 million over around 21 years.

Starpoint is a 10-unit freehold development, located on the fringe of the National University of Singapore’s Kent Ridge campus and Singapore Science Park II. Completed in 1980, the 10-storey apartment building comprises one- to four-bedroom units of 1,819 to 4,725 sq ft. Very few units have changed hands since 2010, the last known resale was in 2009, with a 1,819 sq ft unit sold for $660 psf in July.

The second most promising resale during the week was for a 2,056 sq ft, three-bedroom unit at Costa Rhu, which was sold for $3.08 million ($1,498 psf) on June 23. Previously purchased for $1.05 million ($512 psf) in February 2006, the seller’s gain of $2.03 million (193%) over 17½ years translates to an annualised profit of 6.4%. Costa Rhu is one of a few condos along Tanjong Rhu with unblocked views of the Kallang Basin, while its city-facing view includes landmarks such as Suntec City, South Beach, the upcoming Guoco Midtown, The Gateway and The Concourse.

The 99-year leasehold Costa Rhu was completed in 1997, and comprises 737 two to four-bedroom units of 990 to 2,648 sq ft, as well as penthouses of more than 3,000 sq ft. Prices here have been rising, from $1,275 psf in July 2020 to $1,572 psf this month, and the condo’s most expensive unit in absolute terms fetched $6.25 million in August 2020 ($1,190 psf).

In comparison, average prices in surrounding condos such as Pebble Bay ($1,715 psf), Sanctuary Green ($1,534 psf) and Water Place ($1,598 psf) are higher than those of Costa Rhu.

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