SINGAPORE (EDGEPROP) – ‘Is it a Good Deal?’ is an analytics tool created by EdgeProp to assist buyers in deciding whether they should proceed with a property deal. The tool integrates various analytical tools from EdgeProp to provide buyers with a comprehensive analysis of the deal. This user-friendly tool only requires the buyer to input the property address, and they will be provided with various important pieces of information to aid them in their decision-making process.

Using the tool to analyse a deal

Last month, a three-bedroom unit in The Sea View was sold for $2,590 psf, resulting in a profit of $1.14 million for the seller. The psf selling price also topped the charts among condo sales that took place between February 23 and March 1. On the surface, it would seem that the buyer overpaid for the unit. We used our tool to analyse the transaction and determine if the buyer really got the short end of the stick.

The Sea View is a freehold condo located along Amber Road in District 15. The 546-unit development obtained temporary occupation permit (TOP) in 2008. Amenities within walking distance include Katong Plaza, The Flow Mall, Roxy Square, Parkway Parade, Marine Parade Central Market and Food Centre, Chinese Swimming Club, and East Coast Park. Tanjong Katong Primary and Secondary School are within a 1km radius.

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The condo is located a short drive away from the East Coast Parkway, but connectivity is expected to improve with the opening of the Marine Parade MRT Station (Thomson-East Coast Line) in June. The Marine Parade MRT Station is located a short walk away from The Sea View. Currently, Dakota MRT Station (Circle Line) is the nearest operational station, but it is almost 1.7 km away.

Average price for The Sea View trends above condo units of above 1,200 sq ft in same district

The tool also provides a graph that clearly shows that since 2Q2019, the average price for The Sea View has been trending above the average price for District 15 condo units that are above 1,200 sq ft.

In 4Q2023, the average price for The Sea View was $2,405 psf, which is $728 psf higher than the $1,677 psf commanded by similarly-sized units in the same district. The graph also indicates that the subject deal is 54.5% higher than the average price for the district, and the average price for The Sea View has increased by 72% since 2019.

The Sea View could have benefited from the Marine Parade MRT Station, which is expected to open in June. The anticipated improvement in connectivity after the opening of the MRT station could have given a boost to demand for units in The Sea View and hence its price. It is notable that phase 2 of the Thomson-East Coast Line opened in August 2021, while phase 3 opened in 2022.

Comparing with the neighbours

The tool provides a list of nearby condos, together with their tenures, completion dates, and average prices. Based on the list below, The Esta and One Amber would be the most comparable to The Sea View because they have approximately the same number of units, share a similar completion date, and are freehold developments.

Based on the list below, it is quite clear that The Sea View has the highest average price of $2,391 psf based on transactions in the last 12 months. The average prices for The Esta and One Amber are $2,218 psf and $2,169 psf, respectively.

Read also: FoundOnEdgeProp: Live in a freehold condo in Bukit Timah for under $1,700 psf

A deep dive into the three condos reveals that the average price for The Sea View has been trending above the other two condos since 2014. Based on transactions for the first two months of this year, the average price for The Sea View was $2,512 psf, which is higher than The Esta ($2,293 psf). There have been no transactions for One Amber this year.

However, The Sea View has weaker price growth, rising by 40% from 2014 to last year. The average price for The Esta and One Amber grew by 52% and 53%, respectively, over the same time frame.

Upcoming developments

The tool also informs the user that there are two upcoming launches near The Sea View, along with their tenures, estimated launch dates, and expected launch prices. The upcoming developments have expected average prices ranging of $2,102 psf to $2,320 psf, which is lower than the transacted price of $2,590 psf for the unit in The Sea View.

With this information, buyers who do not have an immediate need for housing might opt to delay their purchase in favour of a nearby brand-new unit.

Conclusion

From the tool, the buyer would have found out that the average price of The Sea View ($2,391 psf) is higher than the average price for The Esta ($2,218 psf) and One Amber ($2,169 psf) based on transactions in the last 12 months. The price of $2,590 psf for the deal is also higher than the average price for The Sea View. Furthermore, The Sea View has achieved weaker price growth than the other two condos. Additionally, units in The Sea View are more expensive than similarly-sized condo units in the same district.

Moreover, the transacted price of $2,590 psf is also higher than the expected launch prices for the both upcoming developments in the vicinity. Furthermore, one of the upcoming developments is a freehold condo that will be launched within six months at an estimated price of approximately $2,320 psf, which is lower than the transacted price and the average price of $2,512 psf for The Sea View based on transactions for the first two months of this year.

Read also: Straits at Joo Chiat achieves 20% sales at an average price of $2,100 psf over the weekend

However, the higher price commanded by The Sea View could be explained by its proximity to numerous malls and the upcoming Marine Parade MRT Station. Furthermore, The Sea View features mainly three and four-bedroom units, so the majority of buyers are likely to be owner-occupiers, who would be more willing than investors to pay a higher price for the convenience of nearby amenities such as an MRT station and malls.

To learn more about this transaction, and whether it is a good deal, click here.

Check out the latest listings for The Sea View properties

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