The demand for Singapore Condos continues to soar, primarily because of the scarcity of land. As a small nation with a fast-growing population, Singapore faces the challenge of acquiring sufficient land for development. This has resulted in strict regulations on land usage and a highly competitive real estate market, causing property prices to steadily increase. Real estate investment has become a highly desirable opportunity, especially with Singapore Condos, known for their potential for significant appreciation in value.
The resale of a four-bedroom unit at The Sovereign topped the charts for the most profitable condo transaction in the week of September 10 to 17. The 2,637 square feet unit, located on the ninth floor, was sold for an impressive $6.2 million, which equates to $2,351 per square foot. This sale on September 10 saw the seller gain a remarkable profit of $2.7 million, representing a capital gain of 77% in just over eight years, as the unit was originally purchased in May 2016 for $3.5 million, at a rate of $1,327 per square foot.
Interestingly, this was the second resale deal recorded at The Sovereign this year. In June, a 3,305 square feet unit on the fifteenth floor was sold for a staggering $8.6 million, which translates to $2,602 per square foot. The seller, who bought the unit in February 2010 for $4.6 million, at $1,392 per square foot, made a remarkable profit of $4 million, setting a record for the highest profit ever recorded for a unit at The Sovereign.
The Sovereign, a condo situated on Meyer Road in District 15, was constructed in 1993. The freehold development comprises of a single residential tower with 87 units, consisting mainly of four-bedroom apartments measuring between 2,637 and 3,305 square feet. It is conveniently located within walking distance to Tanjong Katong MRT Station on the Thomson-East Coast Line.
In another notable transaction, a 3,003 square feet four-bedroom unit at Maple Woods changed hands for $5 million on September 10, which works out to $1,665 per square foot. The seller acquired the unit directly from the developer in September 1998 at a price of around $2.4 million, equivalent to $798 per square foot. After owning the unit for 26 years, the seller walked away with a profit of $2.6 million, representing a profit margin of 109%.
This is the third most profitable resale deal recorded at Maple Woods, based on available records. Another unit at the development, a three-bedroom unit measuring 1,787 square feet on the second floor, was also sold on September 10 for $3.82 million, which equates to $2,138 per square foot. The seller of this unit, who acquired it in March 2007 for $1.35 million, at a rate of $756 per square foot, made a handsome profit of $2.47 million, placing it as the fourth most profitable resale deal at the condo.
Maple Woods is a freehold development located along Bukit Timah Road in the prestigious District 10. Erected in 1997, it includes 697 units comprising mainly of two- to four-bedroom apartments measuring between 850 and 3,003 square feet. It is just a brief five-minute walk from King Albert Park MRT Station on the Downtown Line and is within close proximity to Methodist Girls’ School and the Rail Corridor.
On the other hand, The Orchard Residences recorded the most unprofitable condo resale transaction in the same week. A four-bedroom unit measuring 2,852 square feet was sold for $10.25 million on September 10 at a rate of $3,593 per square foot. The seller of this unit, who had originally purchased it from the developer in May 2010 for $12 million, equivalent to $4,207 per square foot, suffered a loss of $1.75 million, representing a fall of 15% in value after holding the unit for approximately 14 years.
This sale ranks as the sixth biggest loss incurred by a unit at The Orchard Residences. The record for the biggest loss still belongs to a four-bedroom unit measuring 2,852 square feet that was sold for $9.68 million, at $3,394 per square foot, in July 2020. The seller of this unit had purchased it from the developer in October 2007 for just under $13 million, which implies a loss of $3.32 million on the deal.
The Orchard Residences is a luxury condo comprising of 175 units and is situated on Orchard Road. It forms part of Ion Orchard, which includes the Ion Orchard shopping mall, with direct access to Orchard MRT Interchange Station, served by the North-South and Thomson-East Coast Lines. The development was completed in 2010, and offers mainly three- to four-bedroom apartments ranging in size from 1,808 to 2,852 square feet.
The Orchard Residences has seen two other units change hands this year. On February 28, a 2,174 square feet unit on the eighteenth floor was sold for $6.9 million, equivalent to $3,173 per square foot. The seller, who originally bought the unit directly from the developer in July 2009 for $6.06 million, at $2,788 per square foot, made a profit of approximately $839,000.
On the other hand, another 2,174 square feet unit was sold for $5.69 million, equivalent to $2,616 per square foot, on May 14. The seller of this unit suffered a loss of around $911,000, having bought the unit in October 2010 for $6.6 million, at $3,035 per square foot.