Penthouse at UE BizHub City rakes in $2.2 mil profit

over 8 years

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The sale of a five-bedroom penthouse at UE BizHub City (formerly known as UE Square) recently topped the list of the most profitable resale transactions from Sept 26 to Oct 10. On Oct 6, the 3,089 sq ft unit, located on the 18th floor, was sold for $6.28 million ($2,031 psf). Originally purchased for $4.1 million ($1,327 psf) in December 2009, the seller earned a profit of $2.18 million (53%). This translates to an annualised gain of 3.1% over 14 years – the highest profit seen at the development to date.

The runner-up was a three-bedroom unit at The Chuan, a 999-year leasehold condo on Lorong Chuan. On Sept 29, the 1,367 sq ft unit, on the 20th floor, fetched $3.02 million ($2,208 psf). The unit was bought for approximately $992,000 ($726 psf) in October 2006, resulting in a profit of $2.03 million (204%), and an annualised gain of 6.8% over 17 years.

For the most unprofitable deal, a 1,615 sq ft unit at Marina Bay Suites changed hands for $3.15 million ($1,951 psf) on Sept 27. This was $656,000 (17%) lower than what the unit was bought for ($3.8 million/$2,357 psf) back in June 2010, meaning an annualised loss of 1.4%. This marks the seventh unprofitable transaction at Marina Bay Suites this year, with losses ranging from $185,000 to $1.13 million. So far this year, only one sale at Marina Bay Suites has been profitable.

UE BizHub City is a mixed-use development that comprises an 18-storey office building with a four-storey shopping podium, along with a pair of 18-storey residential blocks housing 345 units. It is located in the Robertson Quay area, within walking distance of the eateries along Robertson Quay and Quayside.

Since its completion in 1997, residential prices at UE BizHub City have considerably increased over the years. Based on resale caveats, the average price at the development currently stands at $1,986 psf, above $1,327 psf in October 2013. Comparatively, the average price was $904 psf back in October 2003.

This puts UE BizHub City on a par with nearby residential developments, such as RV Point ($1,982 psf), Vivace ($2,181 psf) and Robertson Edge ($2,075 psf).

Marina Bay Suites is a 99-year leasehold development on Central Boulevard in the Marina Bay financial district. The 66-storey residential tower was completed in 2013 and features 221 units. Typical residences are three- and four-bedroom units ranging from 1,572 to 2,691 sq ft.

So far this year, Marina Bay Suites has seen seven unprofitable resale transactions and just one profitable deal. The greatest loss was for a 2,680 sq ft unit on the 25th floor, which was sold for $5.25 million ($1,959 psf). The unit had been purchased for $6.39 million ($2,383 psf) in December 2009, resulting in a loss of $1.13 million (17%), or an annualised loss of 1.4% over 13 years.

Overall, the sale of the five-bedroom penthouse at UE BizHub City has been the most lucrative transaction this year. Meanwhile, the sale of the 1,615 sq ft unit at Marina Bay Suites has been the least profitable. Prices at UE BizHub City have seen significant increases, with the average price now standing at $1,986 psf, and three nearby properties also having similar prices. Marina Bay Suites has experienced mostly unprofitable deals this year, with the greatest loss amounting to $1.13 million.