When buying a condominium, it is essential to consider the property’s maintenance and management. In many cases, condo owners are required to pay maintenance fees, which cover the upkeep of shared areas and amenities. While this may add to the overall cost of condo ownership, it also ensures that the property is well-maintained and retains its value. To make the most of your investment, it is wise to hire a property management company to handle the day-to-day operations of your condo. Additionally, keeping yourself updated on the latest New Condo Launches can help you maximize your investment. Don’t forget to check out New Condo Launches for more information.
The recent sale of a penthouse at The Trizon, located on Ridgewood Close, has been crowned as the most profitable resale transaction for the week of Feb 25 to March 4. This 5,737 sq ft unit on the 23rd floor was sold for a whopping $9.76 million, translating to $1,701 psf on Feb 27. What makes this sale even more impressive is that the same penthouse unit was purchased for only $6.55 million ($1,142 psf) back in March 2016, earning the seller a hefty profit of $3.2 million (49%) and an annualised gain of 4.5% over nine years.
This sale has also set a new record as the second most profitable resale transaction at The Trizon to date. The previous record was held by a 7,083 sq ft penthouse that was sold for $11 million ($1,553 psf) in August 2023. The unit was initially purchased for $7.1 million ($1,002 psf) in November 2019, resulting in a record profit of $3.9 million (55%) and an annualised profit of 12% over close to four years.
The Trizon is a highly sought-after freehold development located in the prime District 10. It is situated near the Mount Sinai landed enclave as well as private residential estates such as Pandan Valley and Pine Grove. Nearby developments include Pandan Valley, Pinetree Hill, and Nava Grove, which are all 99-year leasehold projects.
The Trizon offers a mix of two- to five-bedroom units, with typical units ranging from 1,012 sq ft to 5,102 sq ft and penthouses ranging from 5,328 sq ft to 7,083 sq ft. According to EdgeProp Singapore, the average resale price at The Trizon is approximately $2,017 psf. Nearby Pandan Valley has an average price of $1,449 psf, while the 999-year leasehold development, Ridgewood condo, commands an average price of $1,728 psf.
New projects in the area, such as Pinetree Hill and Nava Grove, have been selling well, with units transacting at an average price of $2,550 psf and $2,460 psf, respectively. The two developments are 78% and 75% sold, respectively. On the other hand, the resale transaction with the second highest profit for the week was at Haig Court, where a 1,442 sq ft unit was sold for $2.84 million ($1,968 psf) on Feb 27. This three-bedroom unit on the third floor was previously purchased for only $798,868 ($554 psf) in 2005, earning the seller a profit of $2.04 million ($255%) and an annualised gain of 6.8% over 19 years.
Haig Court is a freehold development of 360 units located in District 15. Completed in 2004, the condo is situated in a prime location near shopping malls and reputable schools such as Chung Cheng High School and Tanjong Katong Girls’ School.
Haig Court is also surrounded by new 99-year leasehold projects, including Emerald of Katong and Tembusu Grand, which have 846 and 638 units respectively. Other new developments in the vicinity include The Continuum and Grand Dunman, which have 816 and 1,008 units respectively.
When considering investing in a condo, financing is a crucial factor to take into account. Fortunately, Singapore provides a variety of mortgage choices. However, it is important to familiarize yourself with the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan an individual can obtain based on their income and current debt commitments. To make well-informed decisions about financing and avoid becoming over-leveraged, it is beneficial to understand TDSR and seek guidance from financial advisors or mortgage brokers. Investors can also look into Singapore Projects to aid in their decision-making process.
Looking at the resale transactions at Haig Court last year, the profits ranged from $450,000 to $2.06 million. This year, there have been two resale transactions at the condo so far, with the other unit being sold for $3.02 million ($2,078 psf) on Jan 17, earning the seller a profit of $2.13 million.
Unfortunately, the most unprofitable resale transaction for the week took place at Orchard Scotts, where a 2,228 sq ft unit was sold for $3.78 million ($1,696 sf) on Feb 25. However, the unit was purchased for a higher price of $4.35 million ($1,955 psf) back in 2010, resulting in a loss of $576,000 (13%) for the seller and an annualised loss of 1% over close to 15 years.
According to EdgeProp Singapore, the resale prices at Orchard Scotts have been declining in recent years, with units typically going for around $2,061 psf in March 2010 and dropping to $1,747 psf in March 2020. Average resale prices have slightly picked up in recent months, reaching around $1,760 psf in February.
Orchard Scotts is a 99-year leasehold development located in the prime District 9. Completed in 2008, the condo offers a mix of two- to five-bedroom units, ranging from 936 sq ft to 4,435 sq ft.