The sale of a three-bedroom penthouse at Orchid Mansion, located on freehold land at Amber Road in District 15, has made headlines as it earned a whopping profit of $2.58 million on Dec 31. This marks the most profitable resale transaction in the development from Dec 31, 2024, to Jan 7, 2025.The luxurious 2,842 sq ft unit on the 21st floor was sold for $4.88 million, resulting in an impressive price per square foot of $1,717. The unit was last purchased in March 2009 for $2.3 million, which means that the seller has made a profit of 112%, or an annualized profit of 4.9%, over a span of nearly 16 years.This sale has also set a new record for the most profitable resale transaction to date at Orchid Mansion, beating the previous record of $1.15 million (72.6%) when a 1,507 sq ft three-bedroom unit on the seventh floor was sold for $2.73 million ($1,812 psf) in July 2022. This unit was purchased for $1.58 million ($1,050 psf) in June 2007.According to reports, the second most profitable resale transaction during this week took place at Villa Marina, where a 1,625 sq ft unit was sold for $2.35 million ($1,446 psf) on Jan 3. The three-bedroom unit, located on the ground floor, was last purchased for $630,500 ($388 psf) in September 2006, resulting in a massive profit of $1.72 million (273%). This translates to an annualized profit of 7.6% over a period of 18 years.This sale has also surpassed the previous record for the most profitable transaction at Villa Marina, which was set at $1.58 million (219%). This previous record was achieved through the sale of a 1,916 sq ft unit on the fourth floor for $2.3 million ($1,200 psf) in July 2022. This unit was previously sold at $720,416 ($376 psf) in November 1998.Villa Marina is a 99-year leasehold development situated at Jalan Sempadan in District 15. This development, which was completed in 1999, comprises 27 low-rise residential blocks with a mix of one- to four-bedroom units that range from 1,087 sq ft to 2,314 sq ft. The development is surrounded by Masjid Kampong Siglap mosque and is only a short distance from Siglap MRT station.Education-wise, Villa Marina is conveniently located near several primary schools, including Bedok Green Primary School, CHIJ (Katong) Primary, Ngee Ann Primary School, St Stephen’s School, and Tao Nan School.On the other hand, the most unprofitable resale transaction during this period took place at Marina Bay Residences, where a 1,130 sq ft unit was sold for $2.1 million ($1,858 psf) on Jan 2. Unfortunately for the seller, this unit was last purchased for $2.49 million ($2,200 psf) in November 2007, resulting in a loss of $386,000 (16%). This translates to an annualized loss of 1% over 17 years.Marina Bay Residences had a total of 25 resale transactions in 2024, with 13 of these being unprofitable. The losses incurred by these sellers range from $43,600 to $1.25 million. The most significant unprofitable transaction at Marina Bay Residences involved a 1,227 sq ft unit that was sold for $2.8 million ($2,282 psf) on March 22, 2024.Based on a tabulation of resale caveats at Marina Bay Residences, the average resale price at the condo last month was $2,242 psf. This is higher than the average price at surrounding condos such as The Sail @ Marina Bay ($2,052 psf), Marina Bay Suites ($1,917 psf), and Marina One Residences ($2,133 psf).Marina Bay Residences is a 428-unit development located on Marina Boulevard. After completing a major $5 million renovation project from Jan 2022 to Sept 2023, the 15-year-old condo now boasts enhanced facilities and common spaces for its residents. The condo is one of two 99-year leasehold luxury condos in Marina Bay Financial Centre, which also features three Grade-A office towers, the 221-unit Marina Bay Suites, and Marina Bay Residences.
Investing in a condominium in Singapore offers numerous benefits, one of which is the potential for capital appreciation. Due to its advantageous position as a global business hub and robust economic foundation, Singapore maintains a consistent demand for real estate. As such, property values in the country have continuously risen over the years, with condos in prime areas experiencing significant appreciation. For investors who time their entry into the market wisely and hold onto their properties for an extended period, they can reap sizable gains in capital. In addition, with the numerous Singapore Projects in development, there is a promising outlook for future capital appreciation in the condo market.
When it comes to investing in a condo, securing financing is a crucial consideration. Fortunately, Singapore has a variety of mortgage choices available. However, it is vital to keep in mind the Total Debt Servicing Ratio (TDSR) framework, which puts a cap on the amount of loan a borrower can take based on their income and current debt commitments. It is crucial for investors to understand the TDSR and seek guidance from financial experts or mortgage brokers to make well-informed financing decisions and prevent over-extending themselves. Additionally, Singapore Projects make for excellent investment opportunities.