Investing in a condominium in Singapore offers many benefits, one of which is the potential for capital appreciation. As a key business hub in the world and with a robust economy, Singapore constantly experiences a high demand for real estate. The property market in Singapore has consistently shown a positive trend, with a particular increase in condominium prices in prime locations. For investors who enter the market at the opportune time and hold onto their properties for an extended period, they can expect significant capital gains. To stay updated on the latest New Condo Launches, keeping an eye on the market and its trends is crucial for potential investors.
The sale of a three-bedroom unit at Palm Spring was the most profitable resale transaction over the period of Jan 14 to 28.A three-bedroom unit at Palm Spring was sold on Jan 20 for a whopping $4.4 million, making it the most profitable resale transaction at the development to date. According to caveats lodged, the unit on the fourth floor spanned 1,884 square feet and was sold for $2,336 per square foot. The transaction took place on Jan 20, and the seller reaped a profit of $3.19 million or a whopping 264%. This translates to an annualised profit of 6.8% over nearly 20 years.The sale surpassed the previous record profit at Palm Spring, which was a 1,970 square foot unit on the first floor that was sold for $3.94 million ($2,000 psf) in April 2023. The unit had been purchased for $1.38 million ($701 psf) back in January 2005, making a profit of $2.56 million (185%).The prices of units at Palm Spring have consistently increased over the past 20 years, according to a tabulation of resale transactions by EdgeProp Singapore. In January 2015, the average transacted price was around $1,439 psf, and last month, it had increased to about $2,342 psf. This is a significant jump from the average price of $973 psf back in January 2005. Last year, two units were sold at Palm Spring – a 947 square foot unit for $2.19 million ($2,312 psf) in September, resulting in a profit of $990,000, and a 1,496 square foot unit which was sold in October for $3.36 million ($2,246 psf), resulting in a profit of $2.24 million.Palm Spring is a freehold condominium located on Ewe Boon Road in the prime District 10. Completed in 1997, the 167-unit development is 28 years old. It is conveniently located near Stevens MRT Interchange on the Downtown (DTL) and Thomson-East Coast Lines, as well as Newton MRT Interchange on the North-South Line and DTL.Meanwhile, the second most profitable resale transaction during the period of Jan 14 to 28 was the sale of a four-bedroom unit at Orchard Bel Air, which yielded a profit of $3 million (182%) on Jan 15. The unit, located on the 12th floor, spans 3,229 square feet and was sold for $4.65 million ($1,440 psf). This unit had been purchased for $1.65 million ($511 psf) back in May 2001 and earned the seller an annualised profit of 4.5% over nearly 24 years.A penthouse at Orchard Bel Air made the biggest profit for the development back in January 2013, when it was sold for $8.3 million ($1,275 psf). The unit had been purchased for $3.83 million ($588 psf) in March 2006.The only other 99-year leasehold condominium in the area is the neighbouring Cuscaden Reserve, a luxury condo with 192 units that was completed in 2023. Transaction data reveals that the average price at Cuscaden Reserve is approximately $3,043 psf. Orchard Bel Air is a 99-year leasehold condo situated on Orchard Boulevard in the prime District 10. Completed in 1984, it has about 54 years left on its land tenure. Next to Orchard Bel Air is a government land sale (GLS) site on Orchard Boulevard that was awarded to a UOL-SingLand joint venture last February. The bid was $428.28 million, which translates to a land rate of $1,617 psf per plot ratio.The most unprofitable transaction during the period in review took place at Marina Bay Suites, where the seller of a 1,625 square foot unit on the 58th floor incurred a loss of $1.15 million (27%) when it was sold on Jan 24. The unit, which was recently sold for $3.1 million ($1,907 psf), had been bought for $4.25 million ($2,614 psf) back in May 2012, resulting in an annualised loss of 27% over close to 13 years.The seller’s loss at Marina Bay Suites is part of a recent trend, with 14 consecutive loss-making deals at the development in the past nine months. During this period, losses ranged from $40,000 to $2.5 million.Marina Bay Suites is a 99-year leasehold condo that is part of the Marina Bay Financial Centre mixed-use development, consisting of six towers located at Central Boulevard and Marina Boulevard. The 221-unit Marina Bay Suites is a 66-storey residential tower with a mix of three- and four-bedroom units.A tabulation of caveats by EdgeProp Singapore also reveals that the average selling price at Marina Bay Suites has fallen from $2,502 psf in January 2015 to $1,921 psf in January this year. Other nearby 99-year leasehold condos command higher resale prices, such as The Sail @ Marina Bay ($2,047 psf), Marina Bay Residences ($2,242 psf), Marina One ($2,103 psf), and V on Shenton ($2,027 psf).