Resale unit at Palisades makes record profit of $2.3 mil

Several noteworthy resale transactions closed during the period of Jan 28 to Feb 4 despite coinciding with this year’s Chinese New Year festivities. The most profitable deal was the sale of a 3,983 sq ft unit at the Palisades condominium which fetched $4 million ($1,004 psf) on Feb 4.

This second-floor unit had been bought for $1.7 million ($427 psf) in August 2009. The seller raked in a profit of $2.3 million (135%), which translates to an annualised gain of 5.7% over 15.5 years. This makes it the most profitable resale transaction at Palisades to date.

The previous record was set three years ago, when a 3,294 sq ft unit on the eighth floor was sold for $3.4 million ($1,032 psf). It had been bought for $1.53 million ($465 psf) in 1996. This resulted in a profit of $1.87 million (122%) or an annualised gain of 3.1% over 25 years.

Over the past three years, there have only been five resale transactions at Palisades. These transactions have been profitable, ranging from $650,000 when a 3,294 sq ft unit was sold for $3.8 million ($1,154psf) on Dec 13, 2022, to the latest resale with the record profit of $2.3 million.

A 3,983 sq ft unit at Palisades condo fetched $4 million ($1,004 psf) on Feb 4. (Map: EdgeProp Singapore)

Palisades is a freehold condo on Pasir Panjang Road in District 5. The 18-unit development is 40 years old and was completed in 1985. Palisades is the only condo in Singapore that is equipped with a funicular elevator.

Meanwhile, the second most profitable resale during the period in review took place at Ardmore II, where a four-bedroom unit changed hands for $6.85 million ($3,385 psf) on Feb 3. The unit was purchased for $4.72 million ($2,333 psf) in November 2006. As a result, the seller raked in a profit of $2.12 million (45%), or an annualised gain of 2.1% over 18 years.

Based on caveated transactions tabulated by EdgeProp Singapore, resale prices at Ardmore II have climbed over the past few years, from about $2,623 psf in January 2015 to about $3,390 psf at the start of this year.

A four-bedder at Ardmore II was sold for $6.85 million ($3,385 psf) on Feb 3, leading to a $2.12 million profit. (Picture: Samuel Isaac Chua/The Edge Singapore)

Ardmore II is a freehold luxury condo on Ardmore Park in prime District 10. Nearby developments include the Shangri-La Singapore hotel, Treetops Executive Residences, Ardmore Park, and Sculpture Ardmore. It is also close to Tanglin Road and the Orchard Road shopping belt.

On the other hand, the most unprofitable deal during the period in review was the sale of a studio at Vida, a freehold condo in prime District 9. The 527 sq ft unit, on the 12th floor, was sold for $1.04 million ($1,972 psf) on Feb 4. The unit had been bought for $1.15 million ($2,192 psf) in May 2009. As a result, the seller incurred a loss of $116,000 (10%), which translates to an annualised loss of 0.7% over close to 16 years.

The most unprofitable resale to date at Vida involved a 840 sq ft unit on the 10th floor that fetched $1.73 million ($2,061 psf) in August 2022. The unit had been bought for $2.33 million ($2,774 psf) in July 2007. The seller incurred a record loss of $598,920 (25%), which translates to an annualised loss of 1.9% over 15 years.

A 527 sq ft studio at Vida incurred a loss of $116,000 on Feb 4. (Picture: Samuel Isaac Chua/The Edge Singapore)

Based on caveats, resale prices at Vida have declined in recent years, peaking at about $2,277 psf in August 2015 and falling to about $2,058 psf last month.

Vida is a 137-unit condo on Peck Hay Road in the upscale Newton area. The development is 16 years old and was completed in 2009. The development features a mix of studios, one- and two-bedroom units that range from 506 sq ft to 883 sq ft. Nearby condos include the 387-unit Orchard Scotts on Anthony Road, and condos on Cairnhill Rise and Cairnhill circle such as The Peak @ Cairnhill I & II, Hilltops, and Helios Residences.