The week of Nov 26 to Dec 3 saw a highly profitable condo resale transaction at Island View, a popular freehold condominium in Pasir Panjang. The unit, measuring 3,498 sq ft, was sold on Nov 27 for a whopping $4.8 million, which translates to $1,372 per square foot. The seller had initially purchased the unit for $1.3 million ($372 psf) back in September 2005. This means that after owning the property for almost 19 years, the seller made an impressive gain of $3.5 million, representing a massive 269% increase in capital gain or an annualized profit of 14.2%.
This transaction sets a new record for the most profitable deal at Island View, surpassing the previous record of $3.19 million profit made from the sale of another 3,498 sq ft unit at the condo, which was sold for $5.09 million ($1,455 psf) in February 2022. The seller of this unit had bought it for $1.9 million ($543 psf) in February 2007.
Island View is a boutique condo with 72 units located at Jalan Mat Jambol, off Pasir Panjang Road in District 5. The freehold development, which was completed in 1984, comprises low-rise blocks housing apartments ranging from 3,056 sq ft to 3,538 sq ft. The condo offers residents a tranquil and serene living experience, with the added convenience of being within walking distance to the Pasir Panjang MRT station on the Circle Line.
However, the owners of Island View had attempted a collective sale in September 2023, setting a guide price of $575 million for the development. Unfortunately, the tender closed without any bids, and the condo was relisted for sale in March at the same price, but failed to attract a buyer.
The second most profitable condo resale deal during this period took place at Cavenagh Court, a freehold condo located on Cavenagh Road in District 9’s Newton area. A 1,862 sq ft unit on the sixth floor was sold for $3.65 million ($1,960 psf) on Dec 2. The seller had purchased the unit in April 2006 for $1.02 million ($548 psf), gaining a substantial $2.63 million (258%) over a period of almost 19 years.
This sale sets a new record for the most profitable transaction at Cavenagh Court, surpassing the previous top gain of $2.15 million made from the sale of another 1,862 sq ft unit on the fourth floor for $3.28 million ($1,761 psf) in April 2022. The seller of this unit had acquired it in October 2007 for $1.13 million ($607 psf).
The scarcity of land in Singapore is a major factor driving the high demand for condos in the country. As a small island nation experiencing rapid population growth, Singapore is facing limitations in land availability for development. This has resulted in strict land use regulations and a fiercely competitive real estate market, where prices are continuously on the rise. As a result, investing in real estate, particularly in condos, has become a highly profitable opportunity, with the potential for significant capital appreciation. This trend is evident in the numerous successful Singapore projects that have emerged in recent years.
Cavenagh Court is a boutique development comprising 68 units, with sizes ranging from 1,819 sq ft to 1,862 sq ft. It was completed in 1971 and is situated a short drive away from the bustling Orchard Road shopping belt.
Apart from the unit sold on Dec 2, Cavenagh Court has seen only one other resale transaction this year, based on caveats lodged. A 1,840 sq ft unit on the sixth floor changed hands for $3.82 million ($2,074 psf). The seller had bought this unit for $2.88 million ($1,565 psf) in August 2019, gaining a profit of around $938,000.
In contrast, the sale of a duplex penthouse at The Berth by the Cove was the least profitable condo resale deal during this period. The four-bedroom apartment, spanning 3,089 sq ft, was sold for $3.6 million ($1,165 psf) on Nov 29. However, the unit last changed hands for $5.53 million ($1,790 psf) in August 2007, resulting in a loss of $1.93 million (35%) for the seller after owning the property for around 17 years.
This sale is the second most unprofitable transaction recorded at The Berth by the Cove to date, with the biggest loss belonging to a 2,939 sq ft, four-bedroom unit that was sold for $3.25 million ($1,106 psf) in February 2018. The seller of this unit had bought it in October 2011 for $5.64 million ($1,919 psf), incurring a loss of $2.39 million.
The Berth by the Cove is a condo situated along Ocean Drive in the exclusive Sentosa Cove residential enclave on Sentosa Island. It comprises 200 units spread across 15 low-rise blocks of six storeys each, with sizes ranging from 1,012 sq ft to 2,325 sq ft. It offers residents a luxurious waterfront living experience and is just a short drive away from the vibrant Orchard Road shopping belt.
This year, there have been seven other resale transactions at The Berth by the Cove, with prices ranging from $1,237 psf to $1,535 psf. Four of these deals resulted in losses for the sellers, ranging from $40,000 to $780,000, while the remaining three were profitable, with gains of $200,000 to $430,000.