ANALYSIS: Condominiums leading the pack

By Elizabeth Choong

/ EdgeProp Singapore |

July 12, 2022 3:09 PM SGT

The view of river and forest, one of the rare combinations from Kingsford Waterbay (Picture: EdgeProp Singapore)

The fab five

In our previous article, we covered the top five most unprofitable condominiums. In this article, we will be looking at the “fab five” – the five most profitable condominiums. For methodology, we analysed the sales transactions of condominiums over the last 12 months to determine which developments have the most profitable transactions and the reasons for their demand.

Parc Riviera

During the last 12 months, there were 78 profitable sale transactions and seven unprofitable ones for Parc Riviera. Profits ranged from $32,000 to $325,000.

All sellers of the top three most profitable transactions bought their unit in 2016 or 2017 when Parc Riviera was launched. As such, they paid below $1,200 psf for their unit and sold their units at above $1,350 psf, thus achieving a handsome profit of at least $247 psf each.

Despite the price growth, Parc Riviera ($1,449 psf) is still cheaper than its nearest neighbours; namely Twin Vew ($1,579 psf) and Whistler Grand ($1,655 psf). The three developments are the newest in the vicinity which adds to their appeal to buyers. Parc Riviera and Twin Vew obtained temporary occupation permit (TOP) in 2019 and 2021 respectively, while Whistler Grand was completed earlier this year.

Residents of Parc Riviera enjoy easy access to nature because of its location near Sungei Pandan and Pandan Reservoir. Connectivity to the rest of the island is also convenient via the nearby Ayer Rajah Expressway.

D’Leedon

D’Leedon is the only development in the prime districts of 9, 10 and 11 that made it to the top five list. Profits for the condominium ranged from $22,000 to $1.129 million, based on 75 profitable and 22 unprofitable transactions over the last 12 months. D’Leedon is also the only development in the top five list with profits of over $1.0 million.

Sellers from two out of three most profitable transactions for D’Leedon bought their unit in 2013 when the property market started recovering, and sold their unit this year when the market is peaking. The sellers’ excellent timing enabled them to pocket profits of about $1.0 million each.

D’Leedon is one of the few leasehold developments in the vicinity, which accounts for its lower average price. Nearby freehold developments include uncompleted Leedon Green, uncompleted Wilshire Residences and Leedon Residence (TOP in 2015). Pollen & Bleu is the only other leasehold condominium in the vicinity. However, Pollen & Bleu is younger than D’Leedon ($1,711 psf) by two years, which could account for its higher average price of $1,903 psf. As such, D’Leedon represents a rare opportunity to live in a prime district for under $1,800 psf.

D’Leedon also has a number of amenities within a 1km radius including Farrer Road and Holland Village MRT Stations, Nanyang Primary School, as well as Empress Road Market and Food Centre.

Sims Urban Oasis

Much of the demand for Sims Urban Oasis can be attributed to its city-fringe location. The development has 72 profitable and 15 unprofitable transactions over the last 12 months. Profits range from $20,000 to $341,400.

Geylang Methodist School (Primary and Secondary) and Sims Vista Market and Food Centre are a stone’s throw away from Sims Urban Oasis, while the Pan Island Expressway is just beside the condominium.

Additionally, the nearby Aljunied MRT Station is five stops away from Raffles Place MRT Station, and Bugis MRT Station (an interchange with the Downtown Line) is only three stops away. Sims Urban Oasis also benefits from being only one MRT stop away from Paya Lebar, which is rapidly transforming into Singapore’s newest regional hub.

The excellent location plus affordable price of Sims Urban Oasis presents a value-for-money opportunity to buyers. Average price for the development is $1,640 psf (based on transactions during 1H2022), which is lower than other leasehold condominiums in Rest of Central Region ($2,031 psf) and nearby uncompleted Penrose ($1,695 psf).

Kingsford Waterbay

Based on transactions during the last 12 months, there were 68 profitable and 18 unprofitable transactions for Kingsford Waterbay with profits ranging from $11,614 to $312,000.

The popularity of Kingsford Waterbay could be attributed to its youth compared to its neighbours. Kingsford Waterbay is the newest completed condominium in the vicinity, having obtained TOP in 2018. Riversails was completed two years earlier, followed by Boathouse Residences and Riversound Residence in 2015. Uncompleted Riverfront Residences is the only exception.

Adding to the appeal of Kingsford Waterbay is its close proximity to Sungei Serangoon and Punggol Park. As such, average price of Kingsford Waterbay ($1,289 psf) is $157 psf lower than that of uncompleted Riverfront Residences ($1,446 psf) and merely $29 psf higher than the overall average ($1,260 psf) for the above-mentioned condominiums.

Kingsford Waterbay is also popular with tenants, fetching the highest monthly rent of $4.00 psf and the highest rental volume. This makes it an attractive investment buy.

D’Nest

D’Nest is located in Pasir Ris which is an established residential enclave with numerous condominiums. Within a 1km radius of D’Nest are 10 condominiums with 5,788 units. However, most of the condominiums are older, having been completed many years before D’Nest received TOP in 2017. Immediate neighbours include Coco Palms (TOP in 2018), NV Residences (TOP in 2013), Elias Green (TOP in 1994) and The Palette (TOP in 2015).

D’Nest has an edge over its older counterparts; it saw 67 profitable transactions with profits ranging from $18,000 to $816,000 over the last 12 months. During the same period, D’Nest had 13 unprofitable transactions.

Two of the three most profitable transactions were for ground-floor units. The demand for such units could be due to the private enclosed space that runs along the whole length of the unit. There has been greater interest in larger homes and private outdoor space post pandemic.

D’Nest is located near the uncompleted Pasir Ris 8 which sold 85% of its units during the launch weekend last July. D’Nest would have benefitted from the spotlight on the neighbourhood, especially since its average price of $1,181 psf is much lower than that of Pasir Ris 8 ($1,622 psf).

How to make a profit

Lesson 1: Look beyond prime Districts 9, 10 and 11

All condominiums in the top five list are outside the prime districts except D’Leedon. This proves that properties outside the prime districts can also fetch a handsome profit.

Lesson 2: Beware of lease decay

The value of a condominium will decline as it gets older due to lease decay and maintenance issues. Hence, it is not surprising that all developments in the top five list are eight years or younger.

Lesson 3: Look for growth areas or established residential areas

Residents in established residential enclaves can enjoy many easily accessible amenities, which adds to the appeal of developments such as D’Nest.

Property prices in areas designated for redevelopment by the government will increase. Some spillover benefits can be expected for surrounding neighbourhoods. A good example would be Sims Urban Oasis benefitting from its proximity to Paya Lebar.

Lesson 4: Know the value of your property

Most of the profitable transactions achieved sale prices above the overall average for their respective condominium. Sellers must know the current market value of their asset before commencing negotiations with buyers. They can use EdgeProp’s Edge Fair Value to get an indicative value of their property.

Check out the latest listings near Parc Riviera, Pasir Ris 8, d'Leedon, Sims Urban Oasis, Kingsford Waterbay, Riversails, Boathouse Residences, Riversound Residence, Riverfront Residences, Coco Palms, NV Residences, Elias Green, The Palette, Holland Village MRT Stations, Aljunied MRT Station, Raffles Place MRT Station, Bugis MRT Station, Nanyang Primary School, Geylang Methodist School

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