An apartment at Island View, a freehold condo in Pasir Panjang, sold for $4.8 million, making it the most profitable condo resale transaction during the week of Nov 26 to Dec 3. The 3,498 sq ft unit was sold for $1,372 psf on Nov 27, and the seller had purchased it in September 2005 for $1.3 million, at $372 psf. This represents a gain of $3.5 million or 269%, with an annualized profit of 14.2%.
The transaction on Nov 27 sets a new record profit at Island View, surpassing the previous record of $3.19 million made from the sale of another 3,498 sq ft unit in February 2022. This unit was sold for $5.09 million or $1,455 psf, and the seller had bought it in February 2007 for $1.9 million at $543 psf.
Located on Jalan Mat Jambol, off Pasir Panjang Road in District 5, Island View is a 72-unit boutique condo completed in 1984. It comprises low-rise blocks housing apartments between 3,056 sq ft to 3,538 sq ft, and is a freehold development. The condo is within walking distance to Pasir Panjang MRT Station on the Circle Line.
The owners of Island View attempted a collective sale in September 2023, launching a tender for the development with a guide price of $575 million. However, after the tender closed the following month with no bids, the condo was relisted for sale in March at the same guide price but failed to attract a buyer.
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Investing in a condo has its perks, one being the opportunity to use the property’s value to make further investments. This is made possible by using the condominium as collateral to secure financing for new investments, allowing investors to expand their real estate portfolio. With the addition of Singapore Projects, this strategy can potentially increase returns, but it also comes with its own set of risks. Therefore, it is essential to have a well-thought-out financial plan and carefully consider the potential impact of market fluctuations. This way, investors can make informed decisions and maximize the benefits of their condo investments.
The second most profitable condo resale deal of the week took place at Cavenagh Court, with a 1,862 sq ft unit sold for $3.65 million or $1,960 psf on Dec 2. The seller had bought the unit in April 2006 for $1.02 million at $548 psf, making a gain of $2.63 million or 258% after owning it for almost 19 years.
This deal also sets a new record profit at Cavenagh Court, surpassing the previous top gain of $2.15 million made from the sale of another 1,862 sq ft unit in April 2022. The unit was sold for $3.28 million or $1,761 psf, and the seller had purchased it in October 2007 for $1.13 million at $607 psf.
Cavenagh Court is a freehold condo on Cavenagh Road in District 9’s Newton area, comprising 68 units ranging from 1,819 sq ft to 1,862 sq ft. Completed in 1971, it is a boutique development that is short drive from the Orchard Road shopping belt.
Apart from the unit sold on Dec 2, Cavenagh Court has only seen one other resale transaction this year, whereby a 1,840 sq ft unit on the sixth floor changed hands for $3.82 million or $2,074 psf. The seller had bought the unit for $2.88 million at $1,565 psf in August 2019, making a gain of about $938,000.
In contrast, the sale of a 3,089 sq ft duplex penthouse at The Berth By The Cove was the least profitable condo resale deal of the week. The four-bedroom apartment was sold for $3.6 million or $1,165 psf on Nov 29. However, the unit was last sold for $5.53 million in August 2007, making a loss of $1.93 million or 35% after owning it for around 17 years.
This is the second most unprofitable transaction recorded at The Berth by The Cove to date, with the biggest loss belonging to a 2,939 sq ft, four-bedroom unit that sold for $3.25 million or $1,106 psf in February 2018. The seller had bought the unit in October 2011 for $5.64 million at $1,919 psf, making a loss of $2.39 million.
Located along Ocean Drive in the Sentosa Cove residential enclave, The Berth By The Cove is a 200-unit freehold condo comprising 15 low-rise blocks of six storeys each. It consists of apartments ranging from two- to four-bedrooms at 1,012 sq ft to 2,325 sq ft, and four- and five-bedroom penthouses at 2,939 to 6,028 sq ft.
Out of the seven other resale transactions at the condo this year, four were unprofitable, with losses ranging from $40,000 to $780,000. The remaining three deals were profitable, with gains between $200,000 and $430,000.