When considering investing in condos in Singapore, it is important to be aware of the government’s property cooling measures. Throughout the years, the Singaporean government has implemented various measures to prevent speculative buying and maintain a steady real estate market. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. While these measures may have an impact on the short-term profitability of condo investments, they also contribute to the long-term stability of the market, making it a more secure investment environment. Condo investors should keep these measures in mind when making their investment decisions.
Rewrite:Palm Spring’s three-bedroom unit recently made the most profitable resale transaction from January 14th to 28th. According to lodged caveats, this transaction took place on January 20th, with the unit on the fourth floor being sold for $4.4 million ($2,336 psf). This amount exceeds its purchase price of $1.21 million ($642 psf) back in August 2005, resulting in a profit of $3.19 million (264%) for the seller. This translates to an annualised profit of 6.8% over almost 20 years.This sale also sets a new record at Palm Spring for the most profitable resale transaction, surpassing the previous record of $2.56 million (185%) when a 1,970 sq ft unit on the first floor was sold for $3.94 million ($2,000 psf) in April 2023. The first floor unit was originally bought for $1.38 million ($701 psf) in January 2003.A freehold condominium located on Ewe Boon Road in prime District 10, Palm Spring consists of 167 units and was completed in 1997, making it 28 years old. Its prime location is situated 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.Based on a tabulation of resale transactions by EdgeProp Singapore, prices at Palm Spring have been steadily increasing over the last 20 years. In January 2015, the average transacted price was around $1,439 psf, which has since risen to approximately $2,342 psf in the previous month. This reflects a significant increase from the average price of $973 psf in January 2005.Palm Spring also saw two units being sold last year, further affirming its strong resale performance. In September, a 947 sq ft unit was sold for $2.19 million ($2,312 psf), resulting in a profit of $990,000. In October, a 1,496 sq ft unit was also sold for $3.36 million ($2,246 psf), leading to a profit of $2.24 million. This demonstrates the potential for capital gain at this desirable condominium.In a separate transaction, the most profitable resale transaction took place at Orchard Bel Air, with the sale of a four-bedroom unit generating a profit of $3 million (182%) on January 15th. This 3,229 sq ft unit on the 12th floor was sold for $4.65 million ($1,440 psf), surpassing its purchase price of $1.65 million ($511 psf) back in May 2001. This translates to an annualised profit of 4.5% over nearly 24 years.However, the most notable transaction at Orchard Bel Air was the sale of a 6,512 sq ft penthouse unit on the 25th floor in January 2013, which garnered a record profit of $8.3 million ($1,275 psf). This unit was initially purchased for $3.83 million ($588 psf) in March 2006.Located in prime District 10 along Orchard Boulevard, Orchard Bel Air is a 99-year leasehold condominium that was completed in 1984 and has approximately 54 years left on its land tenure. It is situated next to a government land sale (GLS) site on Orchard Boulevard that was awarded to a UOL-SingLand joint venture last February for $428.28 million or a land rate of $1,617 psf per plot ratio. Nearby, the neighbouring Cuscaden Reserve, a 192-unit luxury condominium that was completed in 2023, commands an average price of approximately $3,043 psf as indicated by transaction data.Meanwhile, the most unprofitable transaction during the period in review occurred at Marina Bay Suites, with a loss of $1.15 million (27%) on the sale of a 1,625 sq ft unit on the 58th floor on January 24th. This unit was sold for $3.1 million ($1,907 psf), having previously been purchased for $4.25 million ($2,614 psf) in May 2012. This equates to an annualised loss of 27% over nearly 13 years.This recent transaction at Marina Bay Suites adds to a series of unprofitable deals that have taken place in the past nine months, with 14 consecutive loss-making transactions reported. These losses ranged from $40,000 to $2.5 million. A 99-year leasehold condominium situated within the six towers of the Marina Bay Financial Centre mixed-use development along Central Boulevard and Marina Boulevard, Marina Bay Suites consists of 221 units and a 66-storey residential tower featuring a mix of three- and four-bedroom units.Over the years, the average selling price at Marina Bay Suites has fallen from $2,502 psf in January 2015 to approximately $1,921 psf in January, which is lower than other nearby 99-year leasehold condominiums 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). This highlights the potential for capital loss at Marina Bay Suites compared to its neighboring developments.