The record-breaking sale of a four-bedroom unit at The Sovereign took place during the week of Sept 10 to 17, making it the most profitable condo resale deal during that period. The 2,637 sq ft unit on the ninth floor sold for $6.2 million ($2,351 psf) on Sept 10, marking a significant increase from its previous purchase price of $3.5 million ($1,327 psf) in May 2016. This translates to a profit of $2.7 million (77%) for the seller, who owned the unit for slightly over eight years.
This was the second resale transaction that The Sovereign has seen this year. In June, a 3,305 sq ft unit on the 15th floor was sold for $8.6 million ($2,602 psf). The seller, who bought the unit in February 2010 for $4.6 million ($1,392 psf), made a gain of $4 million, the highest profit ever recorded for a unit at The Sovereign.
Located on Meyer Road in District 15, The Sovereign is a freehold condo built in 1993. It consists of a single residential tower with 87 units, all of which are four-bedders ranging from 2,637 to 3,305 sq ft in size. The development is within walking distance of the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line.
Maple Woods also saw significant gains during the week, with a 3,003 sq ft four-bedroom unit on the eighth floor selling for $5 million ($1,665 psf) on Sept 10. The seller had purchased the unit from the developer in September 1998 for approximately $2.4 million ($798 psf), making a gain of $2.6 million (109%) after holding the unit for 26 years.
This marked the third most profitable resale transaction at Maple Woods, based on available caveats. Another unit at the development, a 1,787 sq ft three-bedder on the second floor, also changed hands on Sept 10 for $3.82 million ($2,138 psf). The seller, who bought the unit in March 2007 for $1.35 million ($756 psf), walked away with a profit of $2.47 million, making it the fourth most profitable resale deal at the condo.
Maple Woods is a freehold condo situated on Bukit Timah Road in prime District 10. Built in 1997, it comprises 697 units ranging from two- to four-bedders measuring 850 to 3,003 sq ft. The development is just a five-minute walk from King Albert Park MRT Station on the Downtown Line and is also close to reputable schools such as Methodist Girls’ School and the Rail Corridor.
However, not all resale transactions were profitable during the week. The most unprofitable condo resale deal took place at The Orchard Residences, where a 2,852 sq ft four-bedroom unit was sold for $10.25 million ($3,593 psf) on Sept 10. The seller had purchased the unit from the developer in May 2010 for $12 million ($4,207 psf), resulting in a loss of $1.75 million (15%) after owning the unit for around 14 years.
When considering investing in condominiums in Singapore, it is crucial to take into account the government’s property cooling measures. The Singaporean government has implemented several measures over the years to discourage speculative buying and maintain a steady real estate market. These measures, such as the Additional Buyer’s Stamp Duty (ABSD), impose higher taxes on foreign buyers and individuals purchasing multiple properties. While these measures may initially affect the profitability of condo investments, they ultimately contribute to the long-term stability of the market, making it a secure investment environment. To explore opportunities for condominium investments in Singapore, visit Singapore Projects.
This is the sixth biggest loss recorded for a unit at The Orchard Residences, with the highest loss being incurred by a 2,852 sq ft four-bedroom unit that was sold for $9.68 million ($3,394 psf) in July 2020. The seller had bought the unit from the developer in October 2007 for just under $13 million ($4,557 psf), resulting in a loss of $3.32 million.
Situated on Orchard Road, The Orchard Residences is a luxury condo comprising 175 units. It is the residential component of Ion Orchard, which also includes the Ion Orchard shopping mall linked to Orchard MRT Interchange Station (North-South and Thomson-East Coast Lines). The development was completed in 2010, with typical units consisting of three- to four-bedders ranging from 1,808 to 2,852 sq ft.
The development has seen two other units change hands so far this year. On Feb 28, a 2,174 sq ft unit on the 18th floor was sold for $6.9 million ($3,173 psf). The seller, who bought the apartment as a new unit in July 2009 for $6.06 million ($2,788 psf), made a profit of about $839,000.
On the other hand, a 2,174 sq ft unit that changed hands on May 14 incurred a loss of around $911,000 when it was sold for $5.69 million ($2,616 psf). The seller had purchased the unit in October 2010 for $6.6 million ($3,035 psf).