The cityscape of Singapore is characterized by towering skyscrapers and state-of-the-art facilities. Condos, often situated in sought-after locations, offer a perfect fusion of opulence and practicality that caters to the needs of both locals and foreigners. These modern residences boast a plethora of conveniences, including access to swimming pools, fitness centers, and round-the-clock security services, elevating the standard of living and making them an alluring option for potential renters and buyers. For investors, these amenities equate to higher rental returns and appreciating property values in the Condo market over time.
First, let’s address the most profitable resale transaction over the period of Jan 14 to 28 – the sale of a three-bedroom unit at Palm Spring. Located on Ewe Boon Road in prime District 10, Palm Spring is a freehold condominium with a total of 167 units. The sale of this particular unit on the fourth floor fetched a whopping $4.4 million ($2,336 psf) on Jan 20, according to lodged caveats. This was a significant increase compared to its purchase price of $1.21 million ($642 psf) in August 2005. In fact, the seller enjoyed a profit of $3.19 million (264%) on the sale, which translates to an annualised profit of 6.8% over nearly 20 years. This sale also marks the most profitable resale transaction to date at Palm Spring, surpassing the previous record profit of $2.56 million (185%) achieved when a unit on the first floor was sold for $3.94 million ($2,000 psf) in April 2023. The previous owners had purchased the unit for $1.38 million ($701 psf) in January 2003, illustrating the steady increase in property prices at Palm Spring over the past 20 years.According to data compiled by EdgeProp Singapore, the average transacted price at Palm Spring has consistently risen over the past two decades. In January 2021, the average price was around $2,342 psf, a considerable increase from $1,439 psf in January 2015. In fact, the average price was only $973 psf back in January 2005, highlighting the development’s value appreciation over the years. Notably, two units were sold at Palm Spring last year, further solidifying its status as a highly sought-after condominium. A 947 sq ft unit changed hands for $2.19 million ($2,312 psf) in September, bringing in a profit of $990,000 from its previous purchase. In October, a larger 1,496 sq ft unit was sold for $3.36 million ($2,246 psf), resulting in a profit of $2.24 million for the seller.This premium residential development boasts a prime location near Stevens MRT Interchange on the Downtown (DTL) and Thomson-East Coast Lines, as well as Newton MRT Interchange on the North-South Line and DTL, making it highly accessible for residents.In comparison, last month’s second most profitable resale transaction was the sale of a four-bedroom unit at Orchard Bel Air, which generated a profit of $3 million (182%) when it changed hands on Jan 15. The 3,229 sq ft unit on the 12th floor was sold for $4.65 million ($1,440 psf), significantly higher than its purchase price of $1.65 million ($511 psf) in May 2001. Based on these figures, the annualised profit over nearly 24 years was 4.5%. It is worth noting that this sale also holds the record for the highest profit at Orchard Bel Air. The previous record was set in January 2013 when a 6,512 sq ft penthouse unit on the 25th floor was sold for $8.3 million ($1,275 psf), raking in a profit of $4.47 million for the seller, who had initially purchased the unit for $3.83 million ($588 psf) in March 2006.Orchard Bel Air is a 99-year leasehold condominium on Orchard Boulevard, located in the prestigious prime District 10. Completed in 1984, it stands at 28 years old with approximately 54 years left on its land tenure. As the only other 99-year leasehold condominium in the vicinity, Cuscaden Reserve, was only completed in 2023, Orchard Bel Air holds its own in terms of resale prices. According to transaction data, the average price at Cuscaden Reserve stands at around $3,043 psf, making Orchard Bel Air a more affordable option for buyers seeking properties in the area. Interestingly, the condo is situated next to a government land sale (GLS) site awarded to a joint venture between UOL and SingLand in February last year. The bid of $428.28 million works out to a land rate of $1,617 psf per plot ratio.Moving on to the most unprofitable transaction during the review period, the sale of a 1,625 sq ft unit on the 58th floor of Marina Bay Suites stands out for incurring a loss of $1.15 million (27%) when it changed hands on Jan 24. Sold for $3.1 million ($1,907 psf), the unit was previously purchased for $4.25 million ($2,614 psf) in May 2012. This translated to an annualised loss of 27% over close to 13 years. This sale is the latest in a string of unprofitable transactions at Marina Bay Suites, which has seen 14 consecutive loss-making deals in the past nine months. During this period, losses ranged from $40,000 to $2.5 million.Marina Bay Suites is situated within Marina Bay Financial Centre, a luxurious mixed-use development consisting of six towers located at Central Boulevard and Marina Boulevard. Completed in 2023, the 99-year leasehold condo has 221 units and comprises a 66-storey residential tower offering three- and four-bedroom units. According to a tabulation of caveats by EdgeProp Singapore, the average selling price at Marina Bay Suites has declined from $2,502 psf in January 2015 to $1,921 psf as of January this year. In contrast, other nearby condominiums on 99-year leases, such as The Sail @ Marina Bay, Marina Bay Residences, Marina One, and V on Shenton, command higher resale prices with average prices of $2,047 psf, $2,242 psf, $2,103 psf, and $2,027 psf respectively.