During the week of Aug 5 to 12, the sale of a four-bedroom strata landed unit at Watten Hill stood out as the most profitable resale transaction. Located on Watten View in Bukit Timah, the 2,669 sq ft unit was sold for $4.7 million ($1,761 psf) on Aug 11, more than two decades after it was purchased for $1.31 million ($491 psf) in 2000. This resulted in a record profit of $3.38 million (259%) at the freehold condo, which translates to an annualised profit of 5.3% over 25 years.
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The previous record profit at Watten Hill was set by a four-bedroom strata landed unit that was sold for $4.95 million ($1,885 psf) last April. The unit had been bought for $1.82 million ($693 psf) in 2007, which meant the seller made a profit of $3.13 million (172%) or an annualised profit of 6% over 17 years.
Watten Hill has seen four other resale transactions this year, all of which have been profitable with gains ranging from $974,112 to $2.8 million. Besides the Aug 5 transaction, the next highest profit was made by a 2,669 sq ft four-bedroom unit that was sold for $5 million ($1,873 psf) on July 15. This unit had previously fetched $2.2 million ($824 psf) in August 2009.
Apart from Watten Hill, the second most profitable transaction for the week was the sale of a three-bedroom unit at The Ladyhill. The 2,325 sq ft unit on the second floor was sold for $7.38 million ($3,174 psf) on Aug 5, having been purchased for $4.5 million ($1,935 psf) in May 2006. This resulted in a profit of $2.88 million (64%), translating to an annualised profit of 2.6% over around 19 years.
This also makes it the third most profitable resale at The Ladyhill to date, with the record high profit of $3.79 million set in 2022 when a 3,843 sq ft unit on the fourth floor was sold for $7.8 million ($2,030 psf).
Completed in 2002, The Ladyhill is a freehold development on Lady Hill Road in prime District 10. The 55-unit project comprises seven 4-storey blocks of four- and five-bedroom units that range from 2,239 to 4,499 sq ft. Based on EdgeProp Singapore’s compilation of resale caveats, the average price at The Ladyhill is approximately $3,050 psf, higher than some of the nearby freehold luxury projects. However, newer projects such as Ardmore II and Nouvel 18 command even higher average prices.
On the other hand, the most unprofitable resale during the week took place at Turquoise, a 99-year leasehold condo in Sentosa Cove. A three-bedroom unit on the third floor was sold for $3.1 million ($1,485 psf) on Aug 5, having been bought for $5.45 million ($2,613 psf) in November 2007. This resulted in a loss of $2.35 million (43%), which translates to an annualised loss of 3.1%.
Turquoise is one of 10 luxury condos in the exclusive Sentosa Cove waterfront residential enclave. Units at Turquoise overlook the waterway and come with private berths for boats. However, it has not been a good year for resale transactions at Turquoise, with the other two resale transactions resulting in losses as well. Overall, the recent sale at Turquoise serves as a reminder that not all investments will yield profits, and it is important for buyers to do their due diligence and assess the potential for capital appreciation before making a purchase decision.