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During the week of February 7 to February 14, Mandarin Gardens had the most profitable condo resale transaction. It was reported that a four-bedroom, 3,800 sq ft unit at the development sold for $4.88 million, or $1,284 psf, on February 11. URA records show that the same unit was purchased for $1.05 million ($276 psf) in June 2003.
The recent sale resulted in a profit of $3.83 million for the seller, which is equivalent to a whopping 364.8% of their original purchase price. This translates to an annualised capital gain of 7.4% over 21½ years, making it the most profitable transaction recorded at Mandarin Gardens.
Mandarin Gardens is a sprawling development consisting of 17 blocks, ranging from nine to 23 storeys tall, located along Siglap Road in District 15. According to EdgeProp Singapore’s analysis tools, resale prices at the condo have remained stagnant since September 2023 when the average price of units broke the $1,300 psf mark. Since then, prices have peaked at $1,316 psf in June 2024 before falling slightly to $1,310 psf as of February 25.
When it comes to investing in condominiums in Singapore, an important factor to consider is the government’s property cooling measures. Over the years, the Singaporean government has implemented various measures to control speculative buying and ensure a steady real estate market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. Although these measures may impact the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a more secure investment environment. Moreover, with the addition of New Condo Launches, there are even more opportunities for investment in the Singaporean real estate market.
The recently-sold unit is one of 18 four-bedroom units at Mandarin Gardens. The last four-bedroom unit sold at the condo was a 3,800 sq ft unit on the ninth floor that fetched $4.26 million ($1,122 psf) in June 2023.
Mandarin Gardens sits on a 1.07 million sq ft site with a 99-year leasehold starting from 1982, leaving about 56 years remaining on the tenure. The condo has a total of 1,006 units spread across 17 blocks between nine and 23 storeys. The apartments are a mix of one- to two-bedroom units from 732 sq ft to 1,001 sq ft and three- to four-bedroom units from 1,528 sq ft to 3,800 sq ft. The development also houses 11 strata commercial units.
The second most profitable resale transaction during the same period was recorded at Parvis, a freehold condo located along Holland Hill in prime District 10. On February 10, a three-bedroom unit on the second floor, measuring 2,260 sq ft, was sold for $4.78 million ($2,115 psf).
Records show that the unit was last bought from the developers for $2.78 million ($1,230 psf) in December 2009, making a profit of $2 million (71.9%) for the sellers, or an annualised capital gain of 3.6% over 15 years.
Parvis is a 12-storey development comprising 248 residential units, and the most recent transaction now ranks as the third-most profitable one at the condo. The most profitable sale is currently for a 2,605 sq ft, four-bedroom unit that sold for $5.4 million ($2,073 psf) in November 2022. This unit was previously purchased for $3.21 million ($1,230 psf) in December 2009, resulting in a profit of $2.19 million (68.2%), or an annualised gain of 4.1% over 13 years.
The second-floor unit sold on February 10 is the second profitable transaction at Parvis this year. On January 6, a four-bedroom unit on the 12th floor measuring 2,788 sq ft was sold for $6.1 million ($2,188 psf). The seller had bought the unit for $4.25 million ($1,524 psf) in 2011, thus making a profit of $1.85 million (43.5%) after 14 years. This transaction is now the fifth-most profitable one at Parvis.
Parvis has a mix of two-bedroom units of 990 sq ft to 1,442 sq ft apartments along with three- and four-bedders from 1,701 sq ft to 2,605 sq ft. There are also three- and four-bedroom penthouses ranging from 2,293 sq ft to 3,229 sq ft.
Schools within 2km of Parvis include Henry Park Primary School along Holland Grove Road, Nanyang Primary School along Coronation Road, New Town Primary School along Tanglin Halt Road and Queenstown Primary School along Margaret Drive. The condo is a five-minute walk to Holland Village MRT Station on the Circle Line.
On the other hand, the most unprofitable transaction recorded between February 7 and February 14 was for a two-bedroom unit at Scotts Square. On February 13, the 947 sq ft unit situated on the 28th floor was sold for $3.08 million ($3,252 psf). Records show that the same unit was previously sold for about $3.83 million ($4,039 psf) in December 2007. This resulted in a $745,880 (19.5%) loss for the seller, or an annualised loss of 1.3% over 17 years.
According to EdgeProp’s analytical tools, Scotts Square has recorded 69 unprofitable transactions since it was launched in 2007. Of these, 18 (26%) resulted in a seven-figure loss. The most unprofitable transaction was when a 1,249 sq ft, three-bedroom unit was sold for $3.65 million ($2,923 psf) in February 2017. The previous owners had bought the unit at launch in August 2007 for approximately $5.21 million ($4,171 psf), resulting in a loss of about $1.56 million (30%) over 10 years.
The average resale price of units at Scotts Square has been declining since the condo launched in 2007. Based on a 12-month rolling average, prices peaked at $4,054 psf in July 2007 before hitting a low of $3,330 psf in August 2020. In January 2021, the average price of resale units at Scotts Square was $3,398 psf.
Scotts Square is a mixed-use freehold development located along Scotts Road in the Orchard shopping belt. Completed in 2011, it consists of two luxury residential towers of 43 and 34-storeys high with a total of 338 units and a four-storey retail podium. The apartments contain a mix of one- to three-bedroom units ranging from 603 sq ft to 1,249 sq ft. The condo has amenities such as concierge services, a gym, a lap pool and a sky pool on the 35th floor.