The recent sale of a 2,454 sq ft unit at Mount Faber Lodge made headlines as the most profitable resale transaction in the week of July 15 to 22. The three-bedroom, ground floor unit was sold for $4 million ($1,633 psf) on July 15, earning the seller a whopping profit of $2.9 million (264%). This translates to an annualised profit of 4.9% over 27 years, as the unit was previously purchased for $1.1 million ($448 psf) in May 1998.
This sale at Mount Faber Lodge is the second most profitable deal at the freehold condo to date. The record sale took place on Feb 5 when a 3,703 sq ft unit on the seventh floor was sold for $5 million ($1,350 psf). The unit was bought for $1.59 million ($432 psf) in August 2001, resulting in a record profit of $3.39 million (212%). This translates to an annualised profit of 4.9% over nearly 24 years.
Mount Faber Lodge, located on the slope of Mount Faber Hill, was completed in 1983 and comprises 84 units with sizes ranging from 1,098 sq ft studios to 3-bedroom units of 2,669 sq ft. There are also 20 triplex penthouses with 5-bedroom units of up to 3,724 sq ft.
Resale prices at Mount Faber Lodge have consistently increased in recent years, rising from approximately $720 psf in July 2005 to $1,100 psf a decade later. According to transaction data compiled by EdgeProp Singapore, the average price at the condo today is around $1,500 psf.
The limited availability of land is a major factor driving the high demand for condos in Singapore. Being a small island nation with a continuously growing population, Singapore faces the challenge of a shortage of land for development. As a result, strict land use policies have been implemented, creating a competitive real estate market where property prices remain consistently high. This has made investing in real estate, specifically condos, a highly profitable option with the potential for capital appreciation. With the current market conditions, it is no wonder that Singapore Condo investments are in high demand.
The second most profitable deal in the week was the sale of a 4-bedroom unit at Leonie Gardens for $4.15 million ($1,634 psf) on July 17. This unit of 2,540 sq ft on the fourth floor was purchased for $1.27 million ($500 psf) in December 2005, resulting in a profit of $2.88 million (227%) for the seller. This translates to an annualised profit of 6.2% over nearly 20 years.
This is the third-most profitable sale at the 99-year leasehold condo, with the record sale being a 4,295 sq ft penthouse that was sold for $9.5 million ($2,212 psf) in July 2021. The penthouse was bought for $5.6 million ($1,304 psf) in April 2007, resulting in a record profit of $3.89 million (69%) and an annualised profit of 3.7% over 14 years.
Located on Leonie Hill in prime District 9, Leonie Gardens is close to the Orchard Road shopping belt and River Valley and consists of 138 units. The average price at Leonie Gardens, based on a compilation of caveats by EdgeProp Singapore, is approximately $1,690 psf. It surpasses neighbouring 99-year leasehold Horizon Towers ($1,260 psf) but is lower than newer 99-year leasehold projects like OUE Twin Peaks ($2,290 psf), completed in 2015, and Irwell Hill Residences ($2,915 psf), completed last year.
On the other hand, the most unprofitable transaction during the week was at Helios Residences, where a 1,281 sq ft unit on the 17th floor was sold for $3.23 million ($2,552 psf) on July 18. The unit was purchased for $4.02 million ($3,143 psf) in July 2007, resulting in a loss of $757,071 (20%) for the seller. This translates to an annual loss of 1.2% over 18 years.
This is the seventh consecutive resale at Helios Residences this year, and all the deals recorded in the first seven months of 2021 have been unprofitable. Losses ranged from $550,000 to $2.31 million, with the most significant loss occurring when a 1,668 sq ft unit was sold for $3.73 million ($2,239 psf) on March 28.
Helios Residences, completed in 2011, is a freehold condo with 140 units situated on Cairnhill Circle in prime District 9. It comprises two- and three-bedroom units of 1,281 sq ft to 2,002 sq ft, as well as three four-bedroom penthouses of 3,993 sq ft and 4,629 sq ft. Based on 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. Resale prices at Helios Residences have fluctuated over the years and have stabilized at around $2,417 psf in the past five years.