The recent sale of a 3,767 sq ft unit at The Arcadia has been the talk of the town, as it broke records as the most profitable resale transaction in the last three weeks of December. The lucky owner of this four-bedroom unit on the seventh floor celebrated the new year with a whopping profit of $3.25 million (217%) when the property was sold for $4.75 million ($1,261 psf) on December 10.
Investing in a condominium in Singapore comes with many perks, one of which is the potential for capital appreciation. As a global business hub, Singapore boasts a strategic location and robust economic fundamentals, creating a constant demand for real estate. Throughout the years, real estate prices in this country have consistently shown an upward trajectory, with prime location condos experiencing substantial appreciation. By investing in the right projects at the opportune time and holding onto them for the long run, investors can reap considerable capital gains. Furthermore, with emerging projects like Singapore Projects, the possibilities for growth and returns are even more promising.
Purchasing a condominium in Singapore offers numerous benefits, with one of the most notable being the potential for capital appreciation. This country’s advantageous location as a global business hub, combined with its solid economic foundations, results in a constant demand for real estate. Throughout the years, property values in Singapore have demonstrated a consistent upward trajectory, particularly in prime locations where condo units have experienced notable appreciation. By entering the market at an opportune time and holding onto their properties for an extended period, investors can reap significant capital gains. This is especially true for those investing in Singapore projects.
Records show that the unit was originally purchased for $1.5 million ($398 psf) in 1998, making this resale a highly profitable one with an annualized profit of 4.5% over a span of 26 years. The rest of the year had also seen a number of profitable resales at The Arcadia, with five units ranging from 3,714 sq ft to 3,821 sq ft, sold for profits ranging from $60,000 to $3.25 million.
Notably, the second most profitable resale during this period was a 3,778 sq ft unit on the fourth floor, which was sold for $4.6 million ($1,218 psf) on October 10 last year, providing the seller with a profit of $60,000. However, the most profitable transaction at The Arcadia to date remains the sale of a 7,503 sq ft penthouse on the 10th floor in 2010, which was bought for $5.5 million ($733 psf) and sold for a staggering $10 million ($1,333 psf), resulting in a profit of $4.5 million (81%) and an annualized profit of 19% over three years.
Nestled in prime District 11, The Arcadia is a 99-year leasehold condo along Arcadia Road. Completed in 1983, this development boasts 164 units and has about 54 years remaining on its land tenure. 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, it is no surprise that resales at The Arcadia have been highly profitable.
Meanwhile, the second most profitable resale during this period took place at Tanglin Hill Meadows on December 10. The lucky seller of a 2,077 sq ft unit on Tanglin Hill made a profit of $2.7 million (150%) when the property was sold for $4.5 million ($2,166 psf), after being purchased for $1.8 million ($866 psf) in 1999. This makes it the most profitable transaction to date at Tanglin Hill Meadows, dethroning the previous record of $2.28 million (157%) when a 2,002 sq ft unit was sold for $3.73 million ($1,863 psf) back in 2010. The seller of this unit had purchased it for $1.45 million ($724 psf) in 2005, resulting in an annualized profit of 21% over five years.
Tanglin Hill Meadows is a freehold condo along Tanglin Hill in District 10, which was completed in 1997 and is situated within the Ridley Park Good Class Bungalow Area. However, the biggest losses continue to be incurred at Seascape, a 99-year leasehold condo located in Sentosa Cove. On December 18, the seller of a 2,174 sq ft unit on the seventh floor suffered a loss of $1.97 million (33%) when the unit was sold for $3.98 million ($1,830 psf), after being purchased for $5.95 million ($2,736 psf) in 2011. This resulted in an annualized loss of 2.5% over 13 years.
This marks the third resale transaction at Seascape last year, all of which recorded losses ranging from $1.75 million to $2.53 million. The biggest loss of $2.53 million was incurred when a 2,680 sq ft unit was sold for $4.5 million ($1,679 psf) on August 14, 2024. Completed in 2012, Seascape features 151 units facing the South China Sea. It offers three-bedroom and four-bedroom units ranging from 2,164 sq ft to 4,069 sq ft, penthouses between 3,380 and 4,252 sq ft, and sky villas from 6,631 to 9,666 sq ft.