During the week of November 19 to 26, a four-bedroom unit measuring 2,885 sq ft at Ardmore Park emerged as the most profitable condo resale transaction. The unit on the 14th floor was sold for $11.25 million ($3,900 psf) on November 22. The seller had purchased the unit in September 2016 for $8.2 million ($2,843 psf), resulting in a profit of $3.05 million or a capital gain of 37%, with an annualised profit of 4.6% over a holding period of eight years.
Another four-bedroom unit measuring 2,885 sq ft on the 23rd floor was sold for $12.7 million ($4,402 psf) on October 1, making it the second most profitable condo resale deal during the week. The seller had bought the unit in September 2010 for $9.7 million ($3,363 psf), making a profit of $3 million or 30.9% capital gain.
Ardmore Park is a prime district 10 condo with 330 units and freehold tenure. The luxurious development has three 30-storey towers and typical units are four-bedroom apartments measuring 2,885 sq ft, with six 8,740 sq ft duplex penthouses.
Besides these two sales, there have been four other resale transactions at Ardmore Park this year, all of which were profitable. These four-bedroom units fetched between $4,108 psf and $4,472 psf, resulting in profits of $2.65 million to $7.07 million for the sellers.
The second most profitable condo resale deal was the sale of a four-bedroom apartment at Goldenhill Park Condominium. The 1,539 sq ft unit on the 16th floor was sold for $3.43 million ($2,228 psf) on November 21. The owner had purchased the unit from the developer in May 2001 for $1.14 million ($741 psf), making a profit of $2.29 million or 201% capital gain after 23 and a half years of ownership.
This is the second-highest gain recorded at Goldenhill Park Condominium to date, with a record of $2.3 million profit for a 2,928 sq ft four-bedroom penthouse sold for $4.3 million ($1,469 psf) in February 2022. The penthouse was bought from the developer in April 2001 for around $2 million ($683 psf).
Goldenhill Park Condominium is a freehold development with 390 units, located on Mei Hwan Drive in district 20. Completed in 2004, the project offers two- to four-bedroom apartments ranging from 926 sq ft to 2,928 sq ft. It is within walking distance to the Lorong Chuan MRT Station on the Circle Line.
Five other profitable resale transactions have taken place at Goldenhill Park Condominium this year, with units selling for $2,082 psf to $2,246 psf. Profits ranged from $760,000 to $1.91 million for the sellers.
In contrast, the most unprofitable condo resale transaction during the week was the sale of a four-bedroom unit at The Oceanfront @ Sentosa Cove. The 2,831 sq ft unit on the 10th floor was sold for $4.7 million ($1,660 psf) on November 20. The owner had bought the unit in May 2007 for $5.8 million ($2,050 psf), incurring a loss of $1.1 million or 19% after 17 and a half years of ownership.
The Oceanfront @ Sentosa Cove is a 99-year leasehold condo in the exclusive residential enclave of Sentosa Cove. Completed in 2010, the project comprises 264 units in five towers of 12 to 15 storeys. Residences include two- to four-bedroom apartments measuring 1,216 sq ft to 4,284 sq ft, as well as penthouses ranging from 2,745 sq ft to 8,095 sq ft.
Based on caveats lodged, there have been six resale transactions at The Oceanfront @ Sentosa Cove this year, with units selling for $1,500 psf to $1,999 psf. Four were unprofitable, with losses ranging from $30,000 to $519,000. The other two deals were profitable, with gains of about $268,000 and $1.7 million for the sellers.
A crucial factor to take into account when considering investing in condos in Singapore is the government’s efforts to cool the property market. Over the years, the Singaporean authorities have implemented various measures to discourage speculative buying and maintain a steady real estate market. These policies include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. Despite potentially affecting the immediate profitability of condo investments, these measures ultimately contribute to the stability of the market, creating a more secure environment for investors. Additionally, with the introduction of New Condo Launches, there are more options for potential condo investors to consider.