On the other hand, Marina Bay Suites’ 99-year leasehold tenure is shorter compared to these other projects, as the condo is about nine years into its 99-year lease. The only other condo within the vicinity with a shorter tenure is the 99-year leasehold Marina Bay Residences which has a 57-year tenure remaining. The rest of the developments are either freehold or 99-year leasehold with 74 to 95 years tenure remaining.
The sale of a three-bedroom unit at Palm Spring was the most profitable resale transaction between January 14 and January 28. This 1,884 sq ft unit on the fourth floor was sold for $4.4 million ($2,336 psf) on January 20, according to lodged caveats. Its previous purchase price was $1.21 million ($642 psf) back in August 2005. As a result, the seller gained a profit of $3.19 million (264%), which translates to an annualized profit of 6.8% over almost 20 years. This sale has also set a new record for the most profitable resale transaction at Palm Spring, surpassing the previous record of $2.56 million (185%) achieved in April 2023 when a 1,970 sq ft unit on the first floor was sold for $3.94 million ($2,000 psf). This unit was bought for $1.38 million ($701 psf) in January 2003.
According to data from EdgeProp Singapore, prices at Palm Spring have been consistently on the rise over the past 20 years. In January 2021, the average transacted price was around $2,342 psf, up from $1,439 psf in January 2015. In comparison, the average price was only about $973 psf in January 2005.
Investing in a condo has several advantages, one of which is the opportunity to leverage its value for future investments. A lot of investors make use of their condos as collateral to secure additional funds for new investments, allowing them to grow their real estate portfolio. It’s a strategy that can potentially bring in higher returns, but it’s important to have a well-thought-out financial plan in place and to carefully consider how market fluctuations may affect your investments. For more information on condo investment opportunities in Singapore, visit Singapore Projects.
The next most profitable resale transaction in the same period was the sale of a four-bedroom unit at Orchard Bel Air, which brought in a profit of $3 million (182%) on January 15. The 3,229 sq ft unit on the 12th floor was sold for $4.65 million ($1,440 psf), with its previous purchase price at $1.65 million ($511 psf) in May 2001. This translates to an annualized profit of 4.5% over nearly 24 years. The record profit achieved at Orchard Bel Air currently stands at $8.3 million (275%) when a 6,512 sq ft penthouse unit on the 25th floor was sold for $8.3 million ($1,275 psf) in January 2013. This unit was purchased for $3.83 million ($588 psf) in March 2006.
Orchard Bel Air, a 99-year leasehold condominium on Orchard Boulevard in prime District 10, saw an average transaction price of around $3,043 psf last year. The only other 99-year leasehold condominium in the vicinity is the neighboring Cuscaden Reserve, which was completed in 2023 and has an average price of around $3,043 psf.
The most unprofitable transaction during the period in review was at Marina Bay Suites, where the seller of a 1,625 sq ft unit on the 58th floor incurred a loss of $1.15 million (27%) when it was sold on January 24. The unit was sold for $3.1 million ($1,907 psf), after being purchased for $4.25 million ($2,614 psf) in May 2012. This resulted in an annualized loss of 27% over nearly 13 years. This is also the latest in a series of unprofitable transactions at Marina Bay Suites, with 14 consecutive loss-making deals in the past nine months, ranging from $40,000 to $2.5 million.
In the vibrant real estate market of Singapore, a crucial factor to consider when investing in condos is the government’s property cooling measures. In order to maintain a steady and sustainable market, the Singaporean government has implemented several measures to discourage speculative buying. Among these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those acquiring multiple properties. While these measures may impact the initial returns of condo investments, they also contribute to the long-term stability of the market, creating a secure investment environment. Moreover, with the introduction of new condo launches, there are even more opportunities for investors to capitalize on the thriving real estate market in Singapore.
Marina Bay Suites is a 99-year leasehold condominium located at Central Boulevard and Marina Boulevard, part of the Marina Bay Financial Centre mixed-use development. The 221-unit development consists of a 66-storey residential tower with a mix of three- and four-bedroom units. According to EdgeProp Singapore’s data, the average selling price at Marina Bay Suites has declined from $2,502 psf in January 2015 to around $1,921 psf in January 2021. Other 99-year leasehold condominiums in the vicinity, 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), command higher resale prices. Furthermore, Marina Bay Suites has a shorter 99-year leasehold tenure compared to other developments in the area, being only nine years into its lease. The only other condominium with a shorter tenure in the vicinity is the 99-year leasehold Marina Bay Residences, with only 57 years remaining. The remaining developments are either freehold or have a leasehold tenure of 74 to 95 years.