During the week of Nov 26 to Dec 3, the most profitable condo resale transaction was recorded at Island View, a freehold condo in Pasir Panjang. The unit, measuring 3,498 sq ft, was sold for $4.8 million ($1,372 psf) on Nov 27. This marks a significant profit for the seller, who purchased the unit in September 2005 for $1.3 million ($372 psf), resulting in a capital gain of 269% or an annualized profit of 14.2% after owning it for almost 19 years.
The transaction on Nov 27 has set a new record for the most profitable deal at Island View, surpassing the previous record of $3.19 million made in February 2022 for the sale of another 3,498 sq ft unit at $5.09 million ($1,455 psf). The seller had acquired the unit in February 2007 for $1.9 million ($543 psf).
Island View is a boutique condo comprising 72 units located on Jalan Mat Jambol, off Pasir Panjang Road in District 5. Completed in 1984, this freehold development consists of low-rise blocks and offers apartments ranging from 3,056 sq ft to 3,538 sq ft. It is conveniently located within walking distance to the Pasir Panjang MRT Station on the Circle Line.
In September 2023, the owners of Island View attempted a collective sale with a guide price of $575 million. However, after receiving no bids during the tender, the condo was relisted for sale in March this year at the same price, but failed to attract a buyer.
Investing in real estate is a decision that requires careful consideration, and one of the most critical factors to keep in mind is location. This is particularly true in Singapore, where the location of a condo can greatly impact its value. Condominiums located in central areas or in close proximity to essential amenities such as schools, shopping malls, and public transportation hubs have a higher potential for appreciation. Some prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently shown growth in property values. Families, in particular, are drawn to these areas due to their proximity to reputable schools and educational institutions, making condos in these locations highly sought after and thus, a solid investment choice. Additionally, keeping an eye on new condo launches in these prime areas can offer even more opportunities for potential investors.
The second most profitable condo resale transaction during the week was recorded 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 had purchased the unit in April 2006 for $1.02 million ($548 psf), made a gain of $2.63 million (258%) after almost 19 years of ownership.
This deal has also set a new record profit for a unit at Cavenagh Court, surpassing the previous record of $2.15 million in April 2022 for the sale of another 1,862 sq ft unit on the fourth floor at $3.28 million ($1,761 psf). The seller had acquired the unit in October 2007 for $1.13 million ($607 psf).
Cavenagh Court is a freehold condo located 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 away from the popular Orchard Road shopping belt.
Apart from the unit sold on Dec 2, there has only been one other resale transaction at Cavenagh Court this year, with a 1,840 sq ft unit on the sixth floor changing hands for $3.82 million ($2,074 psf). The seller, who had bought the unit in August 2019 for $2.88 million ($1,565 psf), made a gain of about $938,000.
On the other hand, 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. However, the previous owner had purchased it for $5.53 million ($1,790 psf) in August 2007, resulting in a loss of $1.93 million (35%) after owning the unit for nearly 17 years.
This sale marks the second most unprofitable transaction recorded at The Berth By The Cove. The biggest loss belongs to a 2,939 sq ft, four-bedroom unit that was sold for $3.25 million ($1,106 psf) in February 2018. The seller had purchased the unit in October 2011 for $5.64 million ($1,919 psf), incurring a $2.39 million loss.
The Berth By The Cove is a condo located on Ocean Drive in the Sentosa Cove residential enclave on Sentosa Island. Completed in 2006, this freehold development comprises 200 units spread out over 15 low-rise blocks of six storeys each. It offers two- to four-bedroom units ranging from 1,012 sq ft to 2,325 sq ft, as well as penthouses with four to five bedrooms spanning 2,939 to 6,028 sq ft.
There have been seven other resale transactions at The Berth By The Cove this year, with prices ranging from $1,237 psf to $1,535 psf. Four of the deals resulted in losses of $40,000 to $780,000 for the sellers, while the remaining three deals were profitable, with gains of $200,000 to $430,000.