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It is crucial for international investors to have a thorough understanding of the regulations and limitations surrounding property ownership in Singapore. While purchasing condos is generally permissible for foreigners, ownership of landed properties is subject to more stringent rules. Additionally, foreign buyers are required to pay the Additional Buyer’s Stamp Duty (ABSD), currently set at 20% for their first property acquisition. However, despite these extra expenses, the reliability and potential for growth in the Singapore real estate market remain enticing for foreign investments. In fact, the market’s appeal is evident through the continuous stream of foreign investors, as seen in the increasing demand for New Condo Launches.
Condo projects with most unprofitable transactionsThe Arcadia, a 164-unit condo in prime District 11, saw the most profitable resale transaction over the last three weeks of 2023. A 3,767 sq ft unit on the seventh floor was sold for $4.75 million ($1,261 psf) on Dec 10, resulting in a profit of $3.25 million (217%) for the seller. This surpassed the previous record profit of $3.25 million set on Oct 10 last year when a 3,778 sq ft unit on the fourth floor was sold for $4.6 million ($1,218 psf).The 99-year leasehold development was completed in 1983 and has about 54 years remaining on its land tenure. It is surrounded by landed estates and Good Class Bungalows, as well as top schools such as Raffles Girls Primary School, Hwa Chong Institution and National Junior College.In 2017, The Arcadia saw a total of five resale transactions, with profits ranging from $60,000 to $3.25 million. The record profit at the time was held by a 7,503 sq ft penthouse on the 10th floor that changed hands for $10 million ($1,333 psf). The penthouse was bought for $5.5 million ($733 psf) in 2007, resulting in a profit of $4.5 million (81%) for the seller.Meanwhile, the second most profitable resale in the last three weeks of 2023 was that of a 2,077 sq ft unit at Tanglin Hill Meadows on Dec 10. The three-bedder fetched $4.5 million ($2,166 psf) after it was purchased for $1.8 million ($866 psf) in 1999. This also makes it the most profitable transaction to date at Tanglin Hill Meadows, surpassing the previous record of $2.28 million (157%) set in 2010 when a 2,002 sq ft unit was sold for $3.73 million ($1,863 psf).Tanglin Hill Meadows is a freehold condo along Tanglin Hill in prime District 10. The 20-unit development was completed in 1997 and is nestled within the Ridley Park Good Class Bungalow Area.However, losses continue to mount at Seascape, a 99-year leasehold condo in Sentosa Cove, with the seller of a 2,174 sq ft unit on the seventh floor incurring a loss of $1.97 million (33%) when the unit was sold on Dec 18. The unit was purchased for $5.95 million ($2,736 psf) in 2011, but only fetched $3.98 million ($1,830 psf) upon resale. This is the third resale transaction at Seascape last year that has recorded losses ranging from $1.75 million to $2.53 million. The most expensive loss-incurring transaction at Seascape in 2023 was the sale of a 2,680 sq ft unit that was sold for $4.5 million ($1,679 psf) on Aug 14. Completed in 2012, the 151 units at Seascape face the South China Sea. The eight-storey development consists of three-bedroom and four-bedroom units, as well as penthouses and sky villas.