One advantage of investing in condominiums is the opportunity to leverage the property’s value for other investments. Numerous investors utilize their condos as security to acquire additional financing for new ventures, enabling them to broaden their real estate portfolio. This tactic can increase profits, yet it also carries some risks. Therefore, it is essential to have a solid financial strategy and carefully evaluate any potential impact of market changes. Additionally, considering Singapore Projects can provide valuable options for investing and diversifying one’s real estate portfolio.
The top condominium resale deal of the week in Singapore’s property market took place at Island View, a freehold condo located in Pasir Panjang. The sale of a 3,498 sq ft unit on Nov 27 for $4.8 million ($1,372 psf) was the most profitable transaction during the week of Nov 26 to Dec 3.
The unit was originally purchased in September 2005 for $1.3 million ($372 psf), making the seller a significant gain of $3.5 million after owning it for approximately 19 years. This represents a capital gain of 269% or an annualized profit of 14.2%. The transaction on Nov 27 also sets a new record for the most profitable deal at Island View, surpassing the previous record of $3.19 million made in February 2022 when another 3,498 sq ft unit was sold for $5.09 million ($1,455 psf). The seller had bought the unit in February 2007 for $1.9 million ($543 psf).
Island View is a boutique condo with 72 units located on Jalan Mat Jambol, off Pasir Panjang Road in District 5. The freehold development was completed in 1984 and comprises low-rise blocks housing apartments ranging from 3,056 sq ft to 3,538 sq ft. It is within walking distance to Pasir Panjang MRT Station on the Circle Line. A collective sale attempt was made by the owners of Island View in September 2023, with a guide price of $575 million. However, after the tender closed the following month with no bids, the condo was relisted for sale in March at the same price but failed to attract a buyer.
The second most profitable condo resale deal of the week took place at Cavenagh Court, where a 1,862 sq ft unit on the sixth floor was sold for $3.65 million ($1,960 psf) on Dec 2. The seller had purchased the unit in April 2006 for $1.02 million ($548 psf), making a gain of $2.63 million (258%) after owning it for almost 19 years. This sets a new record for the most profitable deal at Cavenagh Court, surpassing the previous record of $2.15 million made in April 2022 when a 1,862 sq ft unit on the fourth floor was sold for $3.28 million ($1,761 psf). The seller of that unit had bought it in October 2007 for $1.13 million ($607 psf).
Cavenagh Court is a freehold condo located on Cavenagh Road in District 9’s Newton area. Completed in 1971, it has 68 units ranging from 1,819 sq ft to 1,862 sq ft. It is a short drive to the Orchard Road shopping district. Apart from the unit sold on Dec 2, only one other resale transaction has been recorded this year for the development. A 1,840 sq ft unit on the sixth floor was sold for $3.82 million ($2,074 psf), with the seller making a gain of about $938,000. In contrast, the sale of a duplex penthouse at The Berth By The Cove was the least profitable condo resale deal of the week. The four-bedroom apartment spanning 3,089 sq ft was sold for $3.6 million ($1,165 psf) on Nov 29. The unit was last purchased in August 2007 for $5.53 million ($1,790 psf), resulting in a loss of $1.93 million (35%) for the seller after around 17 years of ownership.
This transaction is the second most unprofitable deal recorded at The Berth By The Cove to date, with the worst loss belonging to a 2,939 sq ft unit sold in February 2018 for $3.25 million ($1,106 psf). The seller had bought it in October 2011 for $5.64 million ($1,919 psf), incurring a loss of $2.39 million.
The Berth by the Cove is a freehold condo on Ocean Drive in Sentosa Cove, comprising 200 units across 15 low-rise blocks of six storeys each. The apartments range from two to four bedrooms of 1,012 sq ft to 2,325 sq ft, and there are also four- and five-bedroom penthouses of 2,939 sq ft to 6,028 sq ft. There have been seven other resale transactions at the condo this year, with units sold at prices ranging from $1,237 psf to $1,535 psf. Four of the transactions resulted in losses of between $40,000 and $780,000, while the other three resulted in profits of $200,000 to $430,000.