The recent sale of a four-bedroom unit at The Sovereign has set a new record for the most profitable condo resale transaction during the week of Sept 10 to 17. The unit, which measures 2,637 sq ft and is situated on the ninth floor, was sold for $6.2 million ($2,351 psf) on Sept 10. This represents a significant increase from its previous purchase price of $3.5 million ($1,327 psf) in May 2016, resulting in a profit of $2.7 million or a capital gain of 77%. The seller had owned the unit for slightly over eight years.
The Sovereign, a condo located on Meyer Road in District 15 that was built in 1993, comprises a single residential tower housing 87 four-bedroom units ranging from 2,637 to 3,305 sq ft. The recent transaction marks the second resale deal at The Sovereign this year. In June, a 3,305 sq ft unit on the 15th floor was sold for $8.6 million ($2,602 psf). The seller had purchased it in February 2010 for $4.6 million ($1,392 psf), making a profit of $4 million – the highest recorded profit for a unit at The Sovereign.
Another profitable condo resale deal during the week was recorded at Maple Woods, where a 3,003 sq ft four-bedroom unit on the eighth floor was sold for $5 million ($1,665 psf) on Sept 10. The seller had initially bought the unit from the developer in September 1998 for about $2.4 million ($798 psf), yielding a profit of $2.6 million (109%) after holding the unit for 26 years. This is the third most profitable resale transaction at Maple Woods, with the highest being the sale of a three-bedder measuring 1,787 sq ft on the second floor, which was sold for $3.82 million ($2,138 psf) on the same day. The seller had purchased the unit in March 2007 for $1.35 million ($756 psf), making a profit of $2.47 million.
Maple Woods is a freehold condo located on Bukit Timah Road in prime District 10, and comprises 697 units with sizes ranging from 850 to 3,003 sq ft. It is a five-minute walk from King Albert Park MRT Station on the Downtown Line and is also close to Methodist Girls’ School and the Rail Corridor.
However, the most unprofitable condo resale transaction of the week occurred at The Orchard Residences, with the sale of a 2,852 sq ft four-bedroom unit for $10.25 million ($3,593 psf) on Sept 10. The seller had initially bought the unit from the developer in May 2010 for $12 million ($4,207 psf), incurring a loss of $1.75 million (15%) after owning it for about 14 years. This is the sixth biggest loss incurred for a unit at The Orchard Residences, with the largest being the sale of a 2,852 sq ft four-bedroom unit for $9.68 million ($3,394 psf) in July 2020. The seller had bought the unit from the developer in October 2007 for just under $13 million ($4,557 psf), resulting in a loss of $3.32 million.
The Orchard Residences is a 175-unit luxury condo on Orchard Road, and is the residential component of Ion Orchard, which also includes the Ion Orchard shopping mall that is linked to Orchard MRT Interchange Station (North-South and Thomson-East Coast Lines). The development was completed in 2010, with typical units consisting of three- to four-bedders of 1,808 to 2,852 sq ft.
To date, there have been two other transactions at The Orchard Residences this year. On February 28, a 2,174 sq ft unit on the 18th floor was sold for $6.9 million ($3,173 psf). The seller had bought it as a new unit in July 2009 for $6.06 million ($2,788 psf), making a profit of approximately $839,000. Another 2,174 sq ft unit was sold on May 14 at a loss of around $911,000, with a selling price of $5.69 million ($2,616 psf) after initially being purchased in October 2010 for $6.6 million ($3,035 psf).
When it comes to investing in condos in Singapore, there is another crucial factor to consider – the government’s property cooling measures. Over the years, the Singaporean authorities have implemented various measures to control speculative buying and maintain a secure real estate market. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on both foreign buyers and those purchasing multiple properties. While these measures may have a short-term impact on the profitability of condo investments, they also contribute to the long-term stability of the market, making it a more secure investment environment. Condo investors should take these measures into account when considering their investment options.