Investing in a condominium has various advantages, one of which is the option to leverage its value for additional investments. Numerous investors utilize their condos as collateral to secure financing for new investments, ultimately expanding their real estate portfolio. This approach can potentially enhance returns, but it also poses risks. Therefore, it is essential to have a solid financial plan and carefully consider the potential consequences of market fluctuations. To stay up-to-date with new opportunities, it is worth keeping an eye on new condo launches in the market.
The top condo resale transaction of the week occurred at Ardmore Park, with a four-bedroom unit measuring 2,885 sq ft fetching $11.25 million ($3,900 psf) on November 22. This represented a profitable resale deal for the seller, who had bought the unit in September 2016 for $8.2 million ($2,843 psf). The seller was able to earn a profit of $3.05 million, translating to a capital gain of 37% and an annualised profit of 4.6% over an eight-year holding period. This sale comes two months after another four-bedroom unit of the same size on the 23rd floor was sold for $12.7 million ($4,402 psf) on October 1. The seller had purchased this unit in September 2010 for $9.7 million ($3,363 psf), earning a profit of $3 million which reflects a capital gain of 30.9%.Ardmore Park is a freehold condo with 330 units located in the prime District 10 area of Ardmore Park. Completed in 2001, it comprises of three 30-storey towers and features mainly 2,885 sq ft four-bedroom units, with six 8,740 sq ft duplex penthouses. To date, there have been six profitable resale transactions this year, with prices ranging from $4,108 psf to $4,472 psf. The sellers have earned profits between $2.65 million and $7.07 million from these deals.The second most profitable condo resale transaction for the week was recorded at Goldenhill Park Condominium, with a four-bedroom apartment of 1,539 sq ft located on the 16th floor selling for $3.43 million ($2,228 psf) on November 21. The seller had purchased this unit directly from the developer in May 2001 for $1.14 million ($741 psf), resulting in a gain of $2.29 million or 201%. The seller had held this unit for 23 and a half years. This is the second-highest gain recorded at Goldenhill Park Condominium, with the highest being for a four-bedroom penthouse unit of 2,928 sq ft, which was sold for $4.3 million ($1,469 psf) in February 2022. The seller had purchased the unit in April 2001 for about $2 million ($683 psf) and earned a gain of $2.3 million.Goldenhill Park Condominium is a freehold development located on Mei Hwan Drive in District 20, off Ang Mo Kio Avenue 1. It was completed in 2004 with 390 units, comprising of two to four-bedroom apartments ranging from 926 sq ft to 2,928 sq ft. Five other profitable resale transactions have been recorded this year, with the units fetching between $2,082 psf and $2,246 psf, and the sellers earning profits of between $760,000 and $1.91 million.On the other hand, the week’s most unprofitable condo resale transaction took place at The Oceanfront @ Sentosa Cove, with a four-bedroom unit of 2,831 sq ft selling for $4.7 million ($1,660 psf) on November 20. This was a loss for the seller, who had purchased the unit in May 2007 for $5.8 million ($2,050 psf). This resulted in a loss of $1.1 million (19%) for the seller, after owning the unit for 17 and a half years. The Oceanfront @ Sentosa Cove is a condo within the exclusive Sentosa Cove residential enclave and is a 99-year leasehold development. Completed in 2010, it comprises of five towers between 12 and 15 storeys high with 264 units, consisting of two-to-four-bedroom apartments of 1,216 sq ft to 4,284 sq ft, and penthouses of 2,745 sq ft to 8,095 sq ft. There have been six other resale transactions at The Oceanfront @ Sentosa Cove this year, with the units sold for prices ranging from $1,500 psf to $1,999 psf. Four of these deals were unprofitable, with the sellers incurring losses between $30,000 and $519,000. The other two deals were profitable, with the sellers netting gains of about $268,000 and $1.7 million, respectively.