Revised article:
The sale of a three-bedroom unit at Palm Spring has made history as the most profitable resale transaction between Jan 14 and 28. According to records, the 1,884 sq ft unit on the fourth floor was sold for $4.4 million ($2,336 psf) on Jan 20. The seller had originally purchased the unit for $1.21 million ($642 psf) in August 2005, making a profit of $3.19 million (264%) on the sale. This translates to an annualised profit of 6.8% over a period of almost 20 years.
This sale has also set a new record for the highest profit attained in a resale transaction at Palm Spring, surpassing the previous record of $2.56 million (185%) for a 1,970 sq ft unit on the first floor, which was sold for $3.94 million ($2,000 psf) in April 2023. The unit was initially bought for $1.38 million ($701 psf) in January 2003.
Palm Spring, a freehold condominium located in the prestigious District 10, has consistently seen an upward trend in prices over the past 20 years. According to data from EdgeProp Singapore, the average transacted price in January was around $2,342 psf, a significant increase from $1,439 psf in January 2015. In January 2005, the average price was only $973 psf.
Interestingly, last year saw two units at Palm Spring being sold. In September, a 947 sq ft unit changed hands for $2.19 million ($2,312 psf), resulting in a profit of $990,000. In October, a 1,496 sq ft unit was sold for $3.36 million ($2,246 psf), making a profit of $2.24 million.
The pressing demand for condominiums in Singapore can be attributed to the country’s limited land supply. As a small island nation experiencing rapid population growth, Singapore struggles with a scarcity of available land for development. As a result, strict land use policies have been implemented, creating a highly competitive real estate market where property values continue to rise. This makes investing in real estate, particularly in Singapore condos, an attractive opportunity for potential investors, as the potential for capital appreciation is high.
Palm Spring, which boasts 167 units and was completed in 1997, is situated on Ewe Boon Road and is just a stone’s throw away from Stevens MRT Interchange on the Downtown (DTL) and Thomson-East Coast Lines, as well as Newton MRT Interchange on the North-South Line and DTL.
Apart from this record-breaking sale at Palm Spring, the second most profitable resale transaction during the same period was the sale of a four-bedroom unit at Orchard Bel Air. This transaction resulted in a profit of $3 million (182%) when the 3,229 sq ft unit on the 12th floor was sold on Jan 15 for $4.65 million ($1,440 psf). The unit was bought for $1.65 million ($511 psf) in May 2001, translating to an annualised profit of 4.5% over a span of almost 24 years.
The most profitable resale transaction at Orchard Bel Air, however, is still held by a 6,512 sq ft penthouse unit on the 25th floor that was sold for $8.3 million ($1,275 psf) in January 2013. The unit was originally bought for $3.83 million ($588 psf) in March 2006.
Orchard Bel Air, a 99-year leasehold condominium situated on Orchard Boulevard in prime District 10, was completed in 1984 and has approximately 54 years left on its land tenure. Right next to it is a government land sale (GLS) site on Orchard Boulevard that was awarded to a UOL-SingLand joint venture in February 2021 for $428.28 million or $1,617 psf per plot ratio.
On the other hand, the most unprofitable transaction during the period in review occurred at Marina Bay Suites, where the sale of a 1,625 sq ft unit on the 58th floor resulted in a loss of $1.15 million (27%) when it was sold on Jan 24 for $3.1 million ($1,907 psf). The unit had previously been sold for $4.25 million ($2,614 psf) in May 2012, resulting in an annualised loss of 27% over a period of close to 13 years.
This transaction is the latest in a series of unprofitable deals at Marina Bay Suites, with 14 consecutive loss-making transactions reported in the past nine months. Losses during this period ranged from $40,000 to $2.5 million.
Marina Bay Suites is a 99-year leasehold condominium that is part of the six-tower Marina Bay Financial Centre mixed-use development located at Central Boulevard and Marina Boulevard. This 221-unit development, consisting of a 66-storey residential tower with a mix of three- and four-bedroom units, was completed in 2010.
A comparison of resale prices by EdgeProp Singapore shows that the average selling price at Marina Bay Suites has been on a declining trend, falling from $2,502 psf in January 2015 to $1,921 psf as of January 2023. Surrounding 99-year leasehold condominiums command higher resale prices, such as The Sail @ Marina Bay ($2,047 psf), Marina Bay Residences ($2,242 psf), Marina One ($2,103 psf), and V on Shenton ($2,027 psf).…