SINGAPORE (EDGEPROP) – Last month, a 2,669-sq ft unit in Leedon Residence was sold for $7.5 million ($2,810 psf), yielding a profit of $2.6 million. This marks the third-highest profit for the freehold condo. The seller had purchased the unit for $4.9 million ($1,836 psf) in February 2016, giving the seller an annualised return of 5%.

We used our analytics tool, Is it a Good Deal?, to determine whether the buyer of the four-bedroom unit at Leedon Residence secured a favourable purchase.

Freehold condo in in prime District 10

Leedon Residence is located along Leedon Heights, and within District 10 and the Bukit Timah Planning Area. This freehold condo received its temporary occupation permit (TOP) in 2015. The 432-unit development in the Core Central Region (CCR) offers two- to five-bedroom units, ranging from 1,044 sq ft to 8,051 sq ft.

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The condo is within walking distance of Empress Road Market and Food Centre. Although there are no MRT stations within a 500m radius, Holland Village and Farrer Road MRT stations are less than 800m away (see Map 1). Other amenities within a 1km radius include One Holland Village, Holland Village Market and Food Centre, Commonwealth Crescent Market, and Nanyang Primary School.

Parents may wish to note that not all blocks in Leedon Residence fall within the 1km radius of Nanyang Primary School. Based on EdgeProp’s LandLens, only Blocks 14, 20, 22, and 24 are within this radius. The above-mentioned unit is located in Block 14, which is within the 1km radius (see Screenshot 1).

Our tool also highlighted the freehold tenure of Leedon Residence, along with its proximity to Nanyang Primary School and two MRT stations. However, the transacted price for the subject unit is above the average price for both the development and the district (see Screenshot 2).

57 profitable transactions

At the time of writing, there have been 57 profitable and seven unprofitable transactions for Leedon Residence. Of the 57 profitable transactions, seven took place this year, with profits ranging from approximately $470,000 to $2.6 million (see Table 1). The most recent unprofitable transaction was in 2021.

Note: Transactions with the same address are matched. Profitability of each round-trip transaction is based only on the change in asset price and does not take into account transaction costs and the effect of financing.

The profitable transaction last month involved a four-bedroom unit on Level 9 (see Floor Plan 1). The 2,669-sq ft unit includes a private lift, a wet and dry kitchen, a powder room, and an L-shaped balcony accessible from the living/dining area. Additionally, the unit has two bedrooms with en-suite bathrooms. The other two bedrooms have a jack-and-jill configuration, providing them with direct access to a shared bathroom.

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Another transaction this year also yielded a profit of $2.6 million for the seller. This four-bedroom unit was sold in May for $8.65 million ($2,309 psf). The seller had purchased the 3,746-sq ft unit on Level 12 in June 2017 for $6.05 million ($1,615 psf) (see Table 1). Interestingly, both units that generated $2.6 million in profit share a similar layout, except the unit on Level 12 has a spiral staircase leading to a private roof garden (see Floor Plan 2).

Leedon Residence has seven transactions that yielded profits of at least $2 million

At the time of writing, there have been seven transactions for Leedon Residence that yielded profits of at least $2 million. The record-high profit of $2.9 million was for a five-bedroom unit sold in July 2021 for $12.5 million ($2,657 psf). The seller had purchased the 4,704-sq ft unit in October 2017 for $9.6 million ($2,041 psf) (see Table 2).

Note: Transactions with the same address are matched. Profitability of each round-trip transaction is based only on the change in asset price and does not take into account transaction costs and the effect of financing.

The five-bedroom unit is a duplex measuring 4,704 sq ft. The lower level comprises the living and dining area, a dry and wet kitchen, a powder room, and two bedrooms. The master bedroom and the other two bedrooms are on the upper level. All five bedrooms have attached bathrooms. The spacious unit also features a private lift (see Floor Plan 3).

Only seven unprofitable transactions

At the time of writing, there have been only seven unprofitable transactions for Leedon Residence, with losses ranging from approximately $15,000 to $1.291 million (see Table 3). Only two transactions resulted in losses of at least $1 million.

Note: Transactions with the same address are matched. Profitability of each round-trip transaction is based only on the change in asset price and does not take into account transaction costs and the effect of financing.

Read also: Four-bedder at Leedon Residence sold for $2.6 mil profit

The most recent unprofitable transaction took place in April 2021 for $13.8 million ($1,969 psf). The seller purchased the 7,007-sq ft unit in April 2013 for $14.8 million ($2,112 psf), resulting in a loss of $1 million (see Table 3). The five-bedroom unit, measuring 7,007 sq ft, spans three levels. The lower level comprises a living and dining area, a dry and wet kitchen, and two bedrooms. The en-suite master bedroom and the remaining two bedrooms, each with their own attached bathrooms, are on the upper level. The top level features a private roof garden (see Floor Plan 4).

Interestingly, the unit that generated the highest loss of $1.291 million is also a five-bedroom unit that shares the same size and layout as the unit that yielded a loss of $1 million. The unit involved in the highest loss was purchased by the seller in September 2012 for $14.416 million ($2,057 psf) and sold in September 2017 for $13.125 million ($1,873 psf) (see Table 3).

Notably, the same unit was sold again for $15 million ($2,141 psf) in June 2021, resulting in a profit of $1.875 million for the second owner (see Table 4).

The loss experienced by the first owner was due to the purchase price of $2,057 psf being higher than the average price of $1,951 psf for Leedon Residence in 2012. Additionally, the unit was sold at $1,873 psf in 2017, which is significantly lower than the average price of $2,052 psf for the condo that year. The second owner sold the unit at $2,141 psf in 2021, which is lower than that year’s average of $2,340 psf. However, the significantly lower purchase price allowed the second owner to realise a profit (see Chart 1).

Numerous neighbours but few are comparable

There are 23 condos, representing approximately 3,900 units, within a 500m radius of Leedon Residence. Of these 23 neighbouring condos, 21 have a freehold tenure, while the remaining two are 99-year leasehold condos.

The largest developments are Leedon Residence (432 units), Leedon Green (638 units), and D’Leedon (1,703 units). These three condos are the only developments with at least 400 units (see Table 5). D’Leedon also has 12 strata-landed units.

Leedon Green and D’Leedon are located in close proximity to Leedon Residence (see Map 2). Both Leedon Green and D’Leedon are located along Leedon Heights and within District 10.

Similar to Leedon Residence, Leedon Green has a freehold tenure but is significantly younger, having obtained its TOP last year. In contrast, D’Leedon is only one year older, having obtained its TOP in 2014. However, D’Leedon is a 99-year leasehold development.

Leedon Green and D’Leedon achieved smaller profits than Leedon Residence

At the time of writing, Leedon Green has achieved nine profitable transactions and no unprofitable transactions, with profits ranging from approximately $34,700 to $1.15 million. The limited number of profitable transactions for Leedon Green could be attributed to its young age.

The record-high profitable transaction for Leedon Green took place last month. A four-bedroom unit on the 11th storey was sold for $4.9 million ($3,275 psf), earning the seller a profit of $1.15 million. This is the only transaction for Leedon Green that generated a profit of at least $1 million. The seller purchased the unit in April 2021 for $3.75 million ($2,506 psf).

The 1,496-sq ft unit features an en-suite master bedroom, three common bedrooms, a wet and dry kitchen, and a private lift (see Floor Plan 5). The unit also has a balcony that spans across the living and dining area and Bedroom 3.

Excluding the strata-landed units, D’Leedon has achieved 493 profitable transactions, with profits ranging from approximately $1,240 to $1.676 million. The condo also recorded 53 unprofitable transactions for its condo units, with losses ranging from approximately $200 to $611,700.

The most recent profitable transaction for D’Leedon took place last month. This transaction was for a four-bedroom unit on the 20th storey. The seller purchased the unit in September 2012 for $3.283 million ($1,556 psf) and sold it for $4.6 million ($2,180 psf), resulting in a profit of $1.317 million.

The 2,110-sq ft unit has a similar layout to the subject unit from Leedon Green. Both units have their bedrooms and bathrooms clustered together on one side, while the other side comprises the living/dining area and kitchen. The main difference is that the unit from D’Leedon has an additional common bathroom, and it does not feature a private lift or a separate wet and dry kitchen (see Floor Plan 6).

At the time of writing, only four transactions from D’Leedon have yielded a profit of at least $1.3 million (see Table 6). The record-high profit of $1.676 million is for a four-bedroom unit that was sold in July 2022 for $7.45 million ($1,602 psf). The seller purchased the unit on the 34th storey for $5.774 million ($1,242 psf) in November 2017.

Note: Transactions with the same address are matched. Profitability of each round-trip transaction is based only on the change in asset price and does not take into account transaction costs and the effect of financing.

The unit is a penthouse duplex that measures 4,650 sq ft. This spacious unit has four bedrooms, a dry and wet kitchen, and a family area on the lower level. There is also a private roof garden and pool on the upper level (see Floor Plan 7).

Of the 53 unprofitable transactions recorded for condo units in D’Leedon, only one yielded a loss exceeding $325,000. The record-high loss is for a four-bedroom unit on the 31st storey. The seller purchased the unit in February 2016 for $3.955 million ($1,626 psf) and sold it in August 2016 for $3.343 million ($1,374 psf), resulting in a loss of approximately $611,700.

The 2,433-sq ft unit has an en-suite master bedroom, while the other three bedrooms share two common bathrooms and a powder room. The unit also features a sizable balcony adjacent to the living/dining area (see Floor Plan 8).

Strong price growth

As expected, the average price for Leedon Residence ($2,689 psf) is trending between that of Leedon Green ($3,052 psf) and D’Leedon ($1,964 psf) (see Chart 2). The relatively young age of Leedon Green could explain why it has the highest average price, while the lower average price for D’Leedon can be attributed to its leasehold tenure.

Notably, the older Leedon Residence (19.7%) has achieved stronger price growth since 2020 than the younger Leedon Green (13.5%). However, the price growth for leasehold D’Leedon (22.2%) has surpassed both of its freehold neighbours.

It is notable that the average resale price for Leedon Residence ($2,689 psf) surpassed that of freehold condos in District 10 that are 10 years or younger ($2,595 psf) last year (see Chart 3). This could be attributed to the average resale price for Leedon Residence growing by 19.7% since 2020, while that for freehold condos in District 10 of a similar age fell by 3.3%.

Conclusion

The $7.5 million price tag for the unit in Leedon Residence may be eye-watering, but some buyers might consider it a bargain for a four-bedroom unit in a freehold condo in District 10. Furthermore, the 2,669-sq ft unit features a family-friendly layout. Besides the master bedroom, Bedroom 4 also has an attached bathroom, allowing it to be used as a junior master bedroom, making the unit ideal for multi-generation families. The other two bedrooms have direct access to a shared bathroom, and the unit also includes a spacious wet and dry kitchen.

Moreover, Leedon Residence has achieved higher profits than both Leedon Green and D’Leedon. Leedon Residence has recorded seven transactions with profits of at least $2 million, while Leedon Green and D’Leedon do not have any such profitable transactions. This could be attributed to the strong price growth of Leedon Residence, whose average price has grown by 19.7% since 2020. In contrast, the average price for freehold condos in District 10 that are 10 years or younger fell by 3.3% over the same period.

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

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