A five-bedroom penthouse unit at Horizon Towers has recently emerged as the most lucrative resale deal for the week of Aug 12–19. The seller of the 5,145 sq ft penthouse walked away with a staggering profit of $5.1 million (340%) when the unit was sold for $6.6 million ($1,283 psf) on Aug 15. This record-breaking transaction surpasses the previous highest profit recorded at Horizon Towers in March this year, when a 2,616 sq ft unit on the 10th floor was sold for $3.7 million ($1,415 psf). The seller of that unit had purchased it for $999,312 ($382 psf) in July 2004, making a profit of $2.7 million (270%) over a holding period of 20 years, translating to an annualised return of 6.5%.
The latest transaction at Horizon Towers marks the 12th profitable resale deal for the year, with profits ranging from $118,818 to $5.1 million. Notable transactions include a 2,486 sq ft unit on the fifth floor sold for $3.4 million ($1,367 psf) on July 30 and a 2,583 sq ft unit on the 14th floor that fetched $3.75 million ($1,452 psf) on July 14. Completed in 1984, the 211-unit development consists of two 19-storey towers and is now 41 years old. With the 99-year lease commencing in August 1979, the property has 53 years remaining on its lease.
Over the years, the owners of Horizon Towers have made multiple attempts to launch an en bloc sale, with the most recent one in February 2023 at a reserve price of $1.1 billion. The condo’s close proximity to the Great World MRT Station on the Thomson East Coast Line and the completion of the new development in 2032 are some of the factors contributing to its continuous popularity among buyers and investors.
Based on a compilation of resale caveats by EdgeProp Singapore, the average price at Horizon Towers stands at $1,370 psf. Apart from this, the sale of a three-bedroom unit at Maple Woods was also one of the most profitable transactions of the week. The 1,787 sq ft unit on the second floor was sold for $4.06 million ($2,272 psf) on Aug 15, having been purchased for $1.28 million ($719 psf) in 1995. This translated to a profit of $2.78 million (212%) for the seller, with an annualised gain of 3.9% over the 30-year holding period.
Maple Woods is a freehold condo located on Bukit Timah Road in District 21, next to King Albert Park MRT Station on the Downtown Line. The condo, which was completed in 1997, features a total of 697 units comprising of two- to four-bedroom units ranging from 850 sq ft to 3,003 sq ft. So far this year, there have been 10 profitable resale transactions at Maple Woods, with the highest profit recorded from the sale of a 2,551 sq ft unit, which changed hands for $5.45 million ($2,136 psf) on May 2. In contrast, an 850 sq ft unit was sold for $2 million ($2,352 psf) on Aug 18, yielding a profit of $879,750.
On the other end of the spectrum, the most unprofitable transaction for the week was at Marina Bay Residences, where the seller of a 2,379 sq ft unit on the 17th floor incurred a loss of $3.23 million (39%). The unit was sold for $5.1 million ($2,144 psf) on Aug 15, after being purchased for $8.33 million ($3,500 psf) in June 2022. This translates to an annualised loss of 14% over a holding period of three years.
Marina Bay Residences is one of two luxury 99-year leasehold condos at Marina Bay Financial Centre. The development consists of three Grade-A office towers, the Marina Bay Link Mall, and the 221-unit Marina Bay Suites. According to a compilation of caveats by EdgeProp Singapore, the average price at Marina Bay Residences stands at around $2,260 psf, while Marina Bay Suites commands an average price of $1,970 psf.
Investing in a condo in Singapore has become a popular choice for both local and foreign investors, thanks to the thriving economy, stable political climate, and exceptional quality of life in the country. The real estate market in Singapore is full of promising opportunities, and condos have emerged as a top favorite among different types of properties due to their practicality, well-rounded amenities, and potential for high returns on investment. In this article, we will explore the benefits of investing in a condo, important factors to consider, and necessary steps to take in order to succeed in the condo investment market in Singapore.
In comparison, the average price at neighbouring condo The Sail @ Marina Bay is approximately $2,080 psf, while Marina One Residences along Marina Way commands an average price of $2,090 psf. The newest addition to the development in the area is One Marina Gardens, which was launched in April this year. The 937-unit condo, which is a 99-year leasehold project, is currently 54% sold at an average price of $2,958 psf.
Overall, the resale market in Districts 9 and 10 remains strong with many profitable transactions, especially at developments like Horizon Towers and Maple Woods. Buyers and investors are continuously attracted to these areas due to their prime location and amenities, making them a popular choice for property investments.