During the week of July 15 to 22, the most profitable resale transaction was recorded at Mount Faber Lodge with the sale of a 2,454 sq ft unit. The seller of the three-bedroom, ground floor unit earned a whopping $2.9 million (264%) profit after the unit was sold for $4 million ($1,633 psf) on July 15. This translates to an annualized profit of 4.9% over a span of 27 years. The unit had been purchased for $1.1 million ($448 psf) back in May 1998.
This transaction is the second most profitable deal to date at the freehold condo. The highest record was set on February 5 when a 3,703 sq ft unit on the seventh floor was sold for $5 million ($1,350 psf). This unit had been purchased for $1.59 million ($432 psf) in August 2001, resulting in a record profit of $3.39 million (212%) and an annualized profit of 4.9% over nearly 24 years.
Mount Faber Lodge, a freehold development completed in 1983, is located on the slope of Mount Faber Hill. It offers spacious units ranging from 1,098 sq ft studios to three-bedroom units of 2,669 sq ft. It also has 20 triplex penthouses comprising five-bedroom units of up to 3,724 sq ft.
The resale prices at Mount Faber Lodge have been consistently increasing over the years, rising from around $720 psf in July 2005 to $1,100 psf in July 2015. According to transaction data compiled by EdgeProp Singapore, the average price at the condo today is around $1,500 psf.
The second most profitable transaction during the week was recorded at Leonie Gardens with the sale of a four-bedroom unit for $4.15 million ($1,634 psf) on July 17. The 2,540 sq ft unit on the fourth floor was purchased for $1.27 million ($500 psf) in December 2005, resulting in a profit of $2.88 million (227%) and an annualized profit of 6.2% over nearly 20 years.
In addition to its location and amenities, the maintenance and management of a condo are crucial factors to consider when investing in this type of property. Condos typically come with maintenance fees, which cover the upkeep of shared spaces and facilities within the building. While these fees may increase the initial cost of ownership, they also contribute to the property’s long-term value and ensure its well-maintained condition. To further ease the investment process, hiring a property management company can help handle the day-to-day operations of the condo, making it a more passive form of investment.
This is the third most profitable resale at the 99-year leasehold condo. The highest record was set in July 2021 when a 4,295 sq ft penthouse was sold for $9.5 million ($2,212 psf), after it was purchased for $5.6 million ($1,304 psf) in April 2007. This resulted in a record profit of $3.89 million (69%) and an annualized profit of 3.7% over 14 years.
Completed in 1993, Leonie Gardens is a 138-unit development on Leonie Hill in prime District 9, near the Orchard Road shopping belt and River Valley. The area is known for its upscale and luxury condos such as Irwell Hill Residences on Irwell Hill, Horizon Towers on Leonie Hill, and New Futura on Leonie Hill Road. According to a compilation of caveats by EdgeProp Singapore, the average price at Leonie Gardens is around $1,690 psf. It surpasses its neighboring 99-year leasehold Horizon Towers ($1,260 psf), but cannot match newer 99-year leasehold projects such as OUE Twin Peaks ($2,290 psf) and Irwell Hill Residences ($2,915 psf).
On the other hand, the most unprofitable transaction during the week was recorded at Helios Residences. On July 18, a 1,281 sq ft unit on the 17th floor was sold for $3.23 million ($2,552 psf). The unit was purchased for $4.02 million ($3,143 psf) in July 2007, resulting in a loss of $757,071 (20%) and an annual loss of 1.2% over 18 years.
This is the seventh consecutive resale at Helios Residences this year, with all caveated deals in the first seven months of 2021 being unprofitable. Losses ranged from $550,000 for another 1,281 sq ft unit sold for $3.15 million ($2,459 psf) on April 15, to $2.31 million for a 1,668 sq ft unit sold for $3.73 million ($2,239 psf) on March 28.
Helios Residences is a freehold condo on Cairnhill Circle in prime District 9. Completed in 2011, it comprises 140 units of two- and three-bedroom units ranging from 1,281 sq ft to 2,002 sq ft, as well as three four-bedroom penthouses measuring 3,993 sq ft and 4,629 sq ft. According to a compilation of resale caveats by EdgeProp Singapore, unprofitable sales at the condo greatly outnumber profitable deals, with at least 49 unprofitable transactions on record compared to just three profitable sales. The resale prices at Helios Residences have declined from $3,250 psf in July 2010 to $2,417 psf in July 2020, but have stabilized in the past five years.