The profitability of resale transactions in the luxury condo segment has been evident in recent months, with Palm Spring and Orchard Bel Air being prime examples. Located in prime District 10, Palm Spring achieved a profit of $3.19 million (264%) on the sale of a 1,884 sq ft unit, while Orchard Bel Air saw a profit of $3 million (182%) on the sale of a 3,229 sq ft unit.The recently concluded resale transactions in these two premium condos have shown a significant increase in value since they were first purchased. According to the data collated by EdgeProp Singapore, prices at Palm Spring have consistently increased over the past 20 years, with last month’s average transacted price reaching $2,342 psf – a stark contrast to the average price of $973 psf back in January 2005. Similarly, at Orchard Bel Air, the most recent sale of a four-bedroom unit on the 12th floor saw a profit of $3 million, with the average price at the condo being recorded at $3,043 psf.Despite these positive trends, it’s not all good news in the luxury condo segment. According to EdgeProp Singapore’s data, the most unprofitable transaction in the last two weeks occurred at Marina Bay Suites, where the seller of a 1,625 sq ft unit on the 58th floor incurred a loss of $1.15 million (27%). This is the latest in a series of 14 loss-making deals in the past nine months, signalling a possible downward trend in prices at the 99-year leasehold condo.Marina Bay Suites is part of the Marina Bay Financial Centre mixed-use development and has seen a drop in average selling prices from $2,502 psf in January 2015 to $1,921 psf in the most recent transactions. This is significantly lower than other nearby 99-year leasehold condos such as The Sail @ Marina Bay ($2,047 psf), Marina Bay Residences ($2,242 psf), Marina One ($2,103 psf) and V on Shenton ($2,027 psf).Despite the mixed performance in the luxury condo segment, the recent sales at Palm Spring and Orchard Bel Air serve as strong indicators of the potential for profit in the resale market. With consistently increasing prices over the past two decades, these prime locations are a testament to the value and profitability of investing in luxury condos in Singapore.
