Several notable resale transactions were closed between Jan 28 to Feb 4, despite coinciding with Chinese New Year festivities this year. The most lucrative deal was the sale of a 3,983 sq ft unit at the Palisades condominium, which sold for $4 million ($1,004 psf) on Feb 4. This unit, located on the second floor, was originally purchased for $1.7 million ($427 psf) in August 2009. The seller earned a profit of $2.3 million (135%), resulting in an annualized gain of 5.7% over 15.5 years. This makes it the most profitable resale transaction to date at Palisades.
The previous record was set three years ago, when a 3,294 sq ft unit on the eighth floor was sold for $3.4 million ($1,032 psf). It was bought for $1.53 million ($465 psf) in 1996, resulting in a profit of $1.87 million (122%) or an annualized gain of 3.1% over 25 years.
When it comes to investing in condo properties in Singapore, one must take into account the government’s property cooling measures. In an effort to regulate and maintain a steady real estate market, the Singaporean government has implemented various measures to deter speculative buying. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the immediate profitability of condo investments, they also contribute to the long-term stability of the market, creating a more secure investment environment.
Over the past three years, there have only been five resale transactions at Palisades, all of which have been profitable. These transactions ranged from $650,000, when a 3,294 sq ft unit sold for $3.8 million ($1,154 psf) on Dec 13, 2022, to the most recent sale with the record profit of $2.3 million.
Palisades is a freehold condominium situated on Pasir Panjang Road in District 5. It was built in 1985 and has 18 units. Palisades is the only condominium in Singapore equipped with a funicular elevator.
Meanwhile, the second most profitable resale during this period took place at Ardmore II, where a four-bedroom unit was sold for $6.85 million ($3,385 psf) on Feb 3. The unit was purchased for $4.72 million ($2,333 psf) in November 2006, resulting in a profit of $2.12 million (45%), or an annualized gain of 2.1% over 18 years.
According to transactions recorded by EdgeProp Singapore, resale prices at Ardmore II have risen steadily over the past few years, from about $2,623 psf in January 2015 to around $3,390 psf at the start of this year.
Ardmore II is a freehold luxury condominium located on Ardmore Park in the prime District 10. Nearby developments include the Shangri-La Singapore hotel, Treetops Executive Residences, Ardmore Park, and Sculpture Ardmore. It is also close to Tanglin Road and the Orchard Road shopping belt.
On the other hand, the most unprofitable resale during this period was the sale of a studio at Vida, a freehold condominium in prime District 9. The 527 sq ft unit, located on the 12th floor, sold for $1.04 million ($1,972 psf) on Feb 4. The unit was originally purchased for $1.15 million ($2,192 psf) in May 2009. As a result, the seller incurred a loss of $116,000 (10%), translating to an annualized loss of 0.7% over almost 16 years.
The most unprofitable resale to date at Vida involved an 840 sq ft unit on the 10th floor, which sold for $1.73 million ($2,061 psf) in August 2022. It was bought for $2.33 million ($2,774 psf) in July 2007, resulting in a record loss of $598,920 (25%), or an annualized loss of 1.9% over 15 years.
Based on transactions recorded, resale prices at Vida have been declining in recent years, reaching a peak of about $2,277 psf in August 2015 and dropping to around $2,058 psf last month.
Vida is a 137-unit condominium situated on Peck Hay Road in the upscale Newton area. It was completed in 2009 and features a mix of studios, one- and two-bedroom units ranging from 506 sq ft to 883 sq ft. Nearby condominiums include the 387-unit Orchard Scotts on Anthony Road, and condos on Cairnhill Rise and Cairnhill Circle such as The Peak @ Cairnhill I & II, Hilltops, and Helios Residences.