: 6th highest profit year-to-date
Maple Woods played host to the most profitable condo resale deal of the week from July 29 to August 5, with a three-bedroom unit on the first floor going for a whopping $3.26 million or $2,117 psf on August 4. This marked an incredible gain of $2.26 million or a capital gain of 226% for the seller, who had originally purchased the unit back in January 1999 for around $1 million or $650 psf. The impressive sale reflects an annualized profit of 8.7% over a holding period of almost 27 years.
This transaction also ranks as the sixth biggest gain ever recorded for a unit in Maple Woods. The current record holder is a four-bedroom unit of 2,551 sq ft, which was sold for $5.45 million or $2,136 psf on May 2. The seller had bought the unit back in January 2004 for just $1.46 million or $572 psf, resulting in a massive gain of $3.99 million or a staggering 273% over a holding period of over 21 years.
Located on Bukit Timah Road in District 21, Maple Woods is a freehold condo that boasts 697 residences ranging from two to four-bedroom units between 850 sq ft and 3,003 sq ft. It is conveniently situated just a five-minute walk from King Albert Park MRT Station on the Downtown Line, and is within close proximity to prestigious schools such as Methodist Girls’ School and the Rail Corridor.
The second most profitable condo resale deal of the week was recorded at Valley Park, where a two-bedroom unit measuring 1,356 sq ft on the sixth floor was snapped up for $3.04 million or $2,240 psf on August 5. The unit’s previous transaction took place back in November 1995, when it was sold for $1.09 million or $804 psf. This translates to a significant gain of $1.95 million or 179%, which works out to an annualized profit of 6% over a holding period of almost 30 years.
Situated on River Valley Road in prime District 10, Valley Park is a 999-year leasehold condo that was completed in 1997. The development comprises of five high-rise blocks and offers a total of 728 units, including one to four-bedroom units ranging from 732 sq ft to 1,808 sq ft, as well as larger penthouses between 2,562 sq ft to 3,940 sq ft. Apart from the unit sold on August 5, six other resale transactions have taken place at Valley Park this year, all of which have been profitable. The units, which range from 1,216 sq ft to 1,356 sq ft, have recorded gains between $900,000 and $1.64 million.
However, none of these gains compare to the biggest profit ever recorded for a unit at Valley Park, when a four-bedroom penthouse measuring 3,789 sq ft was sold for an impressive $7.57 million or $1,998 psf in June 2022. The seller had originally purchased the unit back in May 2006 for $3.36 million or $886 psf, resulting in a profit of $4.21 million.
On the other hand, the least profitable condo resale deal recorded during the week was at Reflections at Keppel Bay, where a four-bedroom unit spanning 2,659 sq ft on the seventh floor was sold for $4.32 million or $1,625 psf on August 1. The previous transaction for this unit took place in April 2016, when it was bought for $4.7 million or $1,768 psf. The seller incurred a loss of $380,000 or 8.1% over a holding period of nine years.
Investing in a condo can bring about various advantages, one of which is the opportunity to leverage its value for further investments. Numerous investors take advantage of their condos as collateral to secure additional financing for other investments, enabling them to broaden their real estate portfolio. While this approach can potentially increase returns, it is not without risks. Therefore, it is essential to have a well-thought-out financial plan and carefully consider the effects of market fluctuations on your investments. With condo investment, you have the potential to grow your portfolio and achieve greater financial success, but it is crucial to approach it wisely and with careful consideration.
Located in prime District 9, Reflections at Keppel Bay is a luxurious waterfront development with 1,129 units. Completed in 2011, it boasts six residential towers ranging between 24 and 41 storeys, as well as 11 low-rise villa apartment blocks. Based on caveats lodged, 32 units have been transacted so far this year at Reflections at Keppel Bay, with 20 of them being sold below their respective purchase prices. The largest loss recorded was from the sale of a three-bedroom unit measuring 1,733 sq ft for $2.8 million or $1,616 psf on July 3. The seller had previously bought the unit back in August 2013 for $4.18 million or $2,412 psf, resulting in a loss of $1.38 million.