Bizarre & regrettable: Why developers keep launching at old condosTwo projects set record new sale benchmarksSHARESGOOGLE+PINTERESTWEIBO
Nassim 9, a luxury development, made headlines recently as it recorded the most profitable private non-landed resale transaction during the period of Feb 4 to Feb 7. The transaction involved a 2,486 sq ft, four-bedroom unit located on the third floor, which changed hands for $7.5 million, equating to $3,016 psf on Feb 7.
According to the URA caveats, the seller had previously purchased the unit for $4.12 million ($1,641 psf) in December 2005. This translates to a profit of $3.42 million, or 83.8% of their original purchase price. The annualised gain over the span of 19 years amounts to 3.2%.
The sale at Nassim 9 is the third-most profitable resale transaction to date. The current record was set in March 2023 when a larger four-bedroom unit spanning 2,756 sq ft was sold for $9.5 million ($3,448 psf). The unit was initially purchased for $4.12 million ($1,495 psf) in December 2005, resulting in a profit of $5.38 million (130.6%), or an annualised gain of 5% over 17 years.
It is crucial for international investors to familiarize themselves with the regulations and limitations surrounding property ownership in Singapore. While purchasing condos is generally less restrictive for foreigners compared to landed properties, the latter is subject to stricter ownership rules. However, foreign buyers must still pay the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their first property purchase. Despite this extra expense, the stable and promising growth of the Singapore real estate market continues to draw in foreign investment. If you are considering investing in Singapore Condo, it is essential to thoroughly understand the regulations and costs involved.
Prior to the unit sold on Feb 7, the last recorded transaction at Nassim 9 was in March 2023, when a 3,251 sq ft, four-bedroom unit was sold for $10.3 million ($3,169 psf). This generated a profit of $3.3 million.
Nassim 9 is a boutique condo consisting of only eight units, located along Nassim Road in prime District 10. Completed in 2002, the four-storey development offers four-bedroom units ranging from 2,756 to 3,423 sq ft.
In another notable transaction, a triplex penthouse unit at Mount Faber Lodge, a freehold development in District 4, was sold for $5 million ($1,350 psf) on Feb 5. The unit was previously purchased for $1.6 million in August 2001, resulting in a profit of $3.4 million (212.5%), or an annualised gain of 5% over 23½ years.
This transaction is the most profitable deal to date at Mount Faber Lodge, surpassing the previous record set by a three-bedroom unit spanning 2,669 sq ft, sold in October 2022 for $3.89 million ($1,457 psf). This unit was purchased for $1.3 million ($487 psf) in January 2006, translating to a profit of $2.59 million (199.2%).
Completed in 1983, Mount Faber Lodge is a boutique freehold development with a total of 84 units. The studio units span 1,098 sq ft, while the two- and three-bedroom units range from 1,173 to 2,454 sq ft. The development also features 20 five-bedroom triplex penthouses ranging from 3,703 to 3,724 sq ft.
The third most profitable transaction during the period was the sale of a three-bedroom unit at Amaryllis Ville, a 99-year leasehold condo in District 11, on Feb 5. The unit, located on the 28th floor and spanning 1,238 sq ft, was sold for $2.65 million ($2,141 psf). The seller had previously purchased it for $1.09 million, resulting in a profit of $1.56 million (142.2%), or an annualised gain of 4.6% over 19½ years.
This transaction is the third-most profitable at Amaryllis Ville, with the record being held by a 1,991 sq ft, three-bedroom unit on the 17th floor, sold for $3.75 million ($1,885 psf) in September 2023. The unit was initially purchased for $1.95 million ($979 psf) in June 2009, resulting in a profit of $1.8 million (92.5%), or an annualised gain of 4.7% over 14 years.
According to resale data compiled by EdgeProp Singapore, resale prices at Amaryllis Ville have been on a steady increase in recent years. In February 2023, the average price hit $1,897 psf, before rising further to $2,001 psf in February 2024. As of last month, the average price reached $2,082 psf, representing a 4% year-on-year increase.
Amaryllis Ville is a 311-unit condo located along Newton Road, completed in 2004. The development offers a mix of one- and two-bedroom units ranging from 657 to 1,378 sq ft, as well as three-bedroom units from 958 to 2,637 sq ft. Nearby condos include Rochelle at Newton, a 129-unit development located along Keng Lee Road, and Kopar at Newton, a 378-unit development along Makeway Avenue.
During the period in review, there were no unprofitable transactions recorded.