Singaporean buyer scores a bargain at St Regis Residences

By Feily Sofian / The Edge Property | January 21, 2017 9:00 AM SGT
One of the first few resale transactions in 2017 resulted in a hefty loss for the seller. On Jan 3, a high-floor unit at St Regis Residences Singapore was sold at a loss of $2.3 million. The seller bought the unit in a sub-sale transaction in 2008 at $3,100 psf and resold it at $2,268 psf. The loss works out to 27%, or 4% annually over 8½ years.
The buyer, a Singaporean, appeared to have scored a bargain. There have been a total of 237 transactions at St Regis so far, based on caveats lodged. The latest price of $2,268 psf was in the bottom 16% of all historical transactions at the development.
Prices at St Regis peaked in 2007/08 when 21 units changed hands in sub-sale transactions at an average price of $3,231 psf. Of these units, 10 were flipped in less than a year at profits ranging from $310,000 to $12.8 million.
The $12.8 million profit accrued to a penthouse that was bought from the developer in 2006 at $2,530 psf and sold less than a year later to a Japanese billionaire at $4,653 psf, the highest price recorded at St Regis historically. The penthouse made headlines in 2015 when the Japanese owner sold it at a loss of $15.8 million.
Visit for the lowest psf price at St Regis Residences
Fortunes have changed dramatically over the past two years. In 2015, all eight resale transactions at St Regis were in the red, with losses averaging $2.2 million. Last year, five out of seven sellers booked losses ranging from $393,950 to $3.1 million.
St Regis is a 999-year leasehold development comprising 173 luxury residences. Prices averaged $2,280 psf in 2016. Rents for four-bedroom units ranged from $8,600 to $15,850 a month in 4Q2016, depending on the unit size.
On a brighter note, a 3,229 sq ft unit at The Quayside was sold at a profit of close to $2 million on Jan 6. The property was held for more than 11 years and the profit works out to 6% a year on a compounded basis. The unit was bought in 2005 at just $650 psf and resold at $1,262 psf.
The Quayside is a 99-year leasehold riverfront development at Robertson Quay. Completed in 1998, the project comprises just 79 units. Prices averaged $1,258 psf in 2016. The project’s historical high price was $1,535 psf in August 2013 for a 1,550 sq ft unit. Rents for three-bedroom units averaged $5,294 in 4Q2016.
Another property also raked in a profit of more than $1 million in the week of Jan 3 to 10. The 1,830 sq ft unit at Varsity Park Condominium, near the National University of Singapore, was purchased in 2006 at just $450 psf and resold at $1,060 psf. This translates into a profit of 8% a year on a compounded basis.
Varsity Park Condominium is a 99-year leasehold project comprising 530 units. Prices averaged $1,059 psf in 2016. The project’s historical high price was $1,285 psf in June 2013 for a 1,012 sq ft unit. Rents averaged $3,550 a month for two-bedroom units of 1,000 to 1,100 sq ft and $4,820 for three-bedroom units of 1,300 to 1,600 sq ft.