The most profitable condo resale transaction during the week of Nov 26 to Dec 3 was the sale of an apartment at Island View, a freehold condo in Pasir Panjang. The 3,498 sq ft unit was sold for $4.8 million ($1,372 psf) on Nov 27, making it the most profitable deal at the development.
The seller purchased the unit in September 2005 for $1.3 million ($372 psf). After owning it for around 19 years, the seller made a gain of $3.5 million on the deal, representing a capital gain of 269% or an annualised profit of 14.2%.
This sale exceeded the previous record profit of $3.19 million from the sale of another 3,498 sq ft unit at Island View for $5.09 million ($1,455 psf) in February 2022. That seller had purchased the unit in February 2007 for $1.9 million ($543 psf).
Island View is a 72-unit freehold condo on Jalan Mat Jambol, off Pasir Panjang Road in District 5. It consists of low-rise blocks housing apartments from 3,056 sq ft to 3,538 sq ft and was completed in 1984. The condo is within walking distance of the Pasir Panjang MRT Station on the Circle Line.
In September 2023, owners of Island View attempted a collective sale, launching a tender for the development at 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 guide price but failed to attract a buyer.
The second most profitable condo resale deal during 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, who purchased the unit in April 2006 for $1.02 million ($548 psf), made a gain of $2.63 million (258%) after nearly 19 years of ownership.
This sale also set a new record profit for a unit at Cavenagh Court, surpassing the previous top gain of $2.15 million from the sale of another 1,862 sq ft unit on the fourth floor for $3.28 million ($1,761 psf) in April 2022. The seller had acquired that unit in October 2007 for $1.13 million ($607 psf).
When it comes to real estate investment, one of the main factors to consider is location. This is especially true in Singapore, where the right location can significantly impact a property’s value. In particular, condos located in central areas or near vital amenities like schools, shopping centers, and public transportation hubs tend to see higher appreciation in value. In Singapore, areas like Orchard Road, Marina Bay, and the Central Business District (CBD) are considered prime locations, with consistently growing property values. Moreover, these areas are also home to prestigious schools and educational institutions, making condos in these locations highly desirable for families. With the addition of New Condo Launches, the demand for properties in these prime locations is only expected to increase, further boosting their investment potential.
Cavenagh Court is a freehold condo on Cavenagh Road in Newton, District 9. Completed in 1971, this boutique development comprises 68 units ranging from 1,819 sq ft to 1,862 sq ft. It is a short drive from the Orchard Road shopping belt.
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 last changed hands for $5.53 million ($1,790 psf) in August 2007, resulting in a loss of $1.93 million (35%) after around 17 years of ownership.
This deal is the second most unprofitable transaction recorded at The Berth By The Cove to date, with the largest loss being a $2.39 million loss from the sale of a 2,939 sq ft unit in February 2018.
The Berth by the Cove is a condo along Ocean Drive in the Sentosa Cove residential enclave on Sentosa Island. It comprises 200 units in 15 low-rise blocks of six storeys each. The apartments range from two- to four-bedroom units of 1,012 sq ft to 2,325 sq ft, and there are also four- and five-bedroom penthouses.
There have been seven other resale transactions at the condo this year, with prices ranging from $1,237 psf to $1,535 psf. Four were unprofitable, with losses between $40,000 and $780,000. The remaining three were profitable, with gains of $200,000 to $430,000.