Due to the limited availability of land, condos have become a highly sought-after property type in Singapore. As a small nation with a growing population, Singapore is facing a scarcity of land for development. This situation has resulted in strict land use regulations and a fiercely competitive real estate market, where property prices are continuously rising. Therefore, investing in real estate, specifically condos, has become a profitable venture, with the potential for significant capital appreciation. With the allure of condos and their promising investment opportunities, it is no surprise that they are in high demand in Singapore.
Mandarin Gardens achieved the highest profit in a resale condo transaction during the week of Feb 7 to Feb 14. The unit that was sold, a 3,800 sq ft four-bedroom unit on the eighth floor of the development, brought in $4.88 million ($1,284 psf) on Feb 11. The URA records show that this unit was previously sold for $1.05 million ($276 psf) in June 2003. This means that the seller made a profit of $3.83 million (364.8%) and an annualised capital gain of 7.4% over 21½ years. The transaction also marks the most profitable deal ever to have taken place in Mandarin Gardens, surpassing a 3,068 sq ft four-bedroom unit on the 20th floor that was sold for $4.1 million ($1,336 psf) in September 2021. The previous owners of this unit bought it for $1.4 million ($456 psf) in August 2001, and thus made a profit of $2.7 million (193%) from the recent transaction, or an annualised capital gain of 5.5% over 20 years. Resale prices at Mandarin Gardens have hit a stagnation following September 2023 when prices broke the $1,300 psf mark to touch $1,316 psf in June 2020. It has since dipped slightly to $1,310 psf as of Feb 25. The condo has 18 four-bedroom units, with the most recent one to sell being the 3,800 sq ft unit on the ninth floor for $4.26 million ($1,122 psf) in June 2023. Mandarin Gardens is a 17-block project that stands between nine and 23 storeys tall along Siglap Road in District 15. Residential units range from one and two-bedroom apartments of 732 sq ft to 1,001 sq ft, and three and four-bedroom apartments of 1,528 sq ft to 3,800 sq ft. Commercial units also comprise 11 strata units. The second-highest profitable transaction of the week was at Parvis, a freehold condo situated on Holland Hill in prime District 10. A 2,260 sq ft, three-bedroom unit on the second floor went for $4.78 million ($2,115 psf) on Feb 10. This unit was last sold in December 2009 for $2.78 million ($1,230 psf) when the condo was under development. This means that the sellers made a profit of $2 million (71.9%), or an annualised gain of 3.6% over 15 years. Parvis’ most profitable transaction is the sale of a 2,605 sq ft four-bedroom unit on the 12th floor for $5.4 million ($2,073 psf) in November 2022, surpassing the previous record held by a 2,605 sq ft four-bedroom unit that sold for $5.4 million ($2,004 psf) in November 2022. It was previously bought for $3.21 million ($1,230 psf) in December 2009, resulting in a profit of $2.19 million (68.2%) or an annualised gain of 4.1% over 13 years. With that, the Feb 10 transaction can be considered the second-most profitable deal at Parvis. Parvis contains 248 residential units in a 12-storey building. Apartment units are of varying sizes, with two-bedders of 990 sq ft to 1,442 sq ft, three and four-bedders of 1,701 sq ft to 2,605 sq ft, and penthouses of 2,293 sq ft to 3,229 sq ft. Parvis also sits within a 2km radius of schools including Henry Park Primary School along Holland Grove Road, Nanyang Primary School along Coronation Road, New Town Primary School along Tanglin Halt Road, and Queenstown Primary School along Margaret Drive. The condo is also minutes away from Holland Village MRT Station on the Circle Line. The most unprofitable transaction recorded was for a two-bedroom unit at freehold Scotts Square, a mixed-use development on Scotts Road located in Orchard. The 947 sq ft unit on the 28th floor was sold for $3.08 million ($3,252 psf). It was previously purchased at $3.83 million ($4,039 psf) in December 2007. As such, this transaction resulted in a loss of $745,880 (19.5%) for the seller, translating to an annualised loss of 1.3% over 17 years. According to EdgeProp’s analytical tools, there have been 69 unprofitable transactions recorded at Scotts Square since it was launched in 2007. Out of these, as many as 18 (26%) of recorded transactions resulted in a seven-figure loss for sellers. The most unprofitable transaction recorded for Scotts Square was in February 2017 for a 1,249 sq ft three-bedroom unit which changed hands for $3.65 million ($2,923 psf). The sellers had previously bought the unit at launch in August 2007 for about $5.21 million ($4,171 psf), equating to a loss of about $1.56 million (30%) over 10 years. Based on a 12-month rolling average, the average resale price of units at Scotts Square has trended downwards since its launch in 2007, reaching its peak of $4,054 psf in July 2007 before descending to a low of $3,330 psf in August 2020. The most recent average resale price at Scotts Square last month was $3,398 psf. Completed in 2011 by Wharf Estates Singapore, Scotts Square is a 43- and 34-storey mixed-use freehold development with a total of 338 residential units and a four-storey retail podium. The apartment units range from one to three-bedders, with sizes of 603 sq ft to 1,249 sq ft. The facilities offered at this condo include concierge services, a gym, a lap pool, and a sky pool on the 35th floor.