The recent sale of an apartment at Island View, a freehold condo in Pasir Panjang, has been making waves in the real estate market. The transaction, which took place during the week of Nov 26 to Dec 3, was the most profitable resale deal in the area. The 3,498 sq ft unit was sold for an impressive $4.8 million ($1,372 psf) on Nov 27. The seller had originally purchased the unit back in September 2005 for $1.3 million ($372 psf), making a staggering profit of $3.5 million after around 19 years of ownership. This translates to a capital gain of 269%, or an annualised profit of 14.2%.
Interestingly, this sale has set a new record for the most profitable deal at Island View, beating out the previous record of $3.19 million made from the sale of another 3,498 sq ft unit in February 2022. This unit was sold for $5.09 million ($1,455 psf), with the seller having bought it for $1.9 million ($543 psf) back in February 2007.
Island View, a boutique condo located on Jalan Mat Jambol in District 5, is a highly sought-after development due to its freehold status and prime location. Completed in 1984, the low-rise development comprises 72 units ranging from 3,056 sq ft to 3,538 sq ft. What’s more, it is just a short walk away from the Pasir Panjang MRT Station on the Circle Line.
Investing in a condo requires careful consideration of financing options. Singapore provides various mortgage choices, but it is crucial to be well-informed about the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the loan amount that a borrower can take, taking into account their income and current debt obligations. To navigate the TDSR effectively, investors can seek guidance from financial advisors or mortgage brokers. This can aid in making informed decisions and preventing the risk of over-leveraging. Condos are a significant investment, and understanding financing is crucial for a successful investment.
In a separate transaction, Cavenagh Court also made headlines with the sale of a 1,862 sq ft unit on the sixth floor for a whopping $3.65 million ($1,960 psf) on Dec 2. The seller had originally bought the unit back in April 2006 for only $1.02 million ($548 psf), making a profit of $2.63 million after nearly 19 years of ownership. This deal has set a new record for the most profitable transaction at Cavenagh Court, surpassing the previous record of $2.15 million made from the sale of another 1,862 sq ft unit in April 2022.
Cavenagh Court, a freehold condo located on Cavenagh Road in District 9’s Newton area, was completed in 1971 and comprises 68 units ranging from 1,819 sq ft to 1,862 sq ft. It is a short drive away from the Orchard Road shopping belt and is highly coveted by buyers due to its prime location.
On the flip side, the least profitable condo resale deal of the week was at The Berth By The Cove, where a duplex penthouse spanning 3,089 sq ft was sold for $3.6 million ($1,165 psf) on Nov 29. The seller had originally bought the four-bedroom unit back in August 2007 for $5.53 million ($1,790 psf), resulting in a loss of $1.93 million (35%) after around 17 years of ownership.
This sale is the second most unprofitable transaction recorded at The Berth By The Cove, with the biggest loss belonging to a 2,939 sq ft unit that was sold for $3.25 million ($1,106 psf) in February 2018. This unit was bought for $5.64 million ($1,919 psf) in October 2011, resulting in a loss of $2.39 million.
Located on Ocean Drive in the exclusive Sentosa Cove residential enclave, The Berth By The Cove boasts 200 units spread across 15 low-rise blocks of six storeys each. The development, which was completed in 2006, offers two- to four-bedroom units ranging from 1,012 sq ft to 2,325 sq ft, as well as four- and five-bedroom penthouses measuring 2,939 to 6,028 sq ft.
It is worth noting that out of the seven other resale transactions at The Berth By The Cove this year, four were unprofitable with the sellers incurring losses between $40,000 and $780,000. On the other hand, the remaining three deals were profitable, with the sellers making gains of $200,000 to $430,000.
Overall, these recent transactions at Island View, Cavenagh Court, and The Berth By The Cove showcase the diverse landscape of the Singapore property market, with some properties fetching impressive profits while others incurring losses. As always, it is important for buyers and sellers to carefully consider their options and conduct thorough research before making any property transactions.