Investing in a condo in Singapore offers numerous benefits, one of which is the potential for capital appreciation. Because of Singapore’s strategic location as a major business hub and its solid economic foundation, the demand for real estate remains constant. As a result, property prices in the country have consistently risen over the years, particularly in prime locations where condos are highly sought after. Those who make smart investments at the right time and hold onto their properties for a prolonged period can reap significant profits from the steady increase in property value. Keeping an eye on new condo launches can also present opportunities for lucrative investments.
A record-breaking sale at Island View, a freehold condo in Pasir Panjang, has made headlines in the real estate market. The 3,498 sq ft unit was sold for $4.8 million on Nov 27, making it the most profitable condo resale transaction of the week from Nov 26 to Dec 3. The seller, who purchased the property in September 2005 for $1.3 million, made a gain of $3.5 million after owning it for 19 years. This represents a capital gain of 269% or an annualised 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 gained from the sale of another 3,498 sq ft unit in February 2022. The condo, located on Jalan Mat Jambol, off Pasir Panjang Road, is a 72-unit boutique development completed in 1984. The freehold project features low-rise blocks of apartments ranging from 3,056 sq ft to 3,538 sq ft. It is within walking distance of Pasir Panjang MRT Station on the Circle Line.
Interestingly, the sellers at Island View had attempted a collective sale in September 2023, with a guide price of $575 million. However, the tender closed the following month without any bids, and the project was relisted in March without any success.
The second most profitable condo resale deal of the week was at Cavenagh Court, a freehold condo on Cavenagh Road in District 9’s Newton area. A 1,862 sq ft unit was sold on Dec 2 for $3.65 million, marking a new record profit for the development. The seller, who purchased the unit in April 2006 for $1.02 million, made a gain of $2.63 million (258%) after nearly 19 years of ownership. The previous record gain was $2.15 million from the sale of another 1,862 sq ft unit in April 2022.
Completed in 1971, Cavenagh Court is a boutique development comprising 68 units ranging from 1,819 sq ft to 1,862 sq ft. The condo is a short drive from the Orchard Road shopping belt and has only seen one other resale transaction this year.
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 on Nov 29, resulting in a loss of $1.93 million. The unit was last transacted in August 2007 for $5.53 million. The biggest loss at The Berth By The Cove belongs to a 2,939 sq ft unit sold in February 2018 for $3.25 million, resulting in a $2.39 million loss.
The Berth by the Cove, a condo along Ocean Drive in the Sentosa Cove residential enclave, has seen seven other resale transactions this year. Both Island View and The Berth by the Cove are among the most sought-after condos in their respective districts.