Is it a Good Deal?: $2.88 million for a three-bedroom unit in a freehold D9 condo
By Elizabeth Choong
/ EdgeProp Singapore |
Last year, two transactions from The Regalia yielded profits exceeding $1 million. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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Last month, a three-bedroom unit at The Regalia was sold for $2.88 million ($2,368 psf), earning the seller a profit of $1.13 million. The seller had purchased the 1,216-sq ft unit in April 2017 for $1.75 million ($1,439 psf). The transacted price of $2,368 psf for the unit on the 11th storey is a record high for the freehold condo located in District 9.
We used our analytics tool, “Is it a Good Deal?”, to evaluate whether the buyer of the three-bedroom unit at The Regalia secured a good deal despite paying a record-high price.
Freehold condo in a prime district
The Regalia is a freehold condo located along River Valley Close in District 9. Amenities within walking distance include Great World MRT Station, Great World City, New Bahru, and River Valley Primary School (see Map 1). The 116-unit development consists of only three-bedroom and four-bedroom units that range in size from 1,216 sq ft to 2,648 sq ft.
Source: EdgeProp LandLens (as at 15 January 2025)
The main drawback of The Regalia is its age. The condo obtained its temporary occupation permit (TOP) in 1993, making it 32 years old. However, this could be mitigated by the development's freehold tenure (see Screenshot 1).
Source: EdgeProp Is it a Good Deal (as at 15 January 2025)
Our analytics tool also indicates that the transacted price, despite being a record high for The Regalia, is below the average prices for the district and a nearby development (see Screenshot 2).
Source: EdgeProp Is it a Good Deal (as at 15 January 2025)
Four profitable transactions last year
At the time of writing, The Regalia has recorded 52 profitable and 22 unprofitable transactions. Of the 52 profitable transactions, four occurred last year, with profits ranging from approximately $635,000 to $1.76 million (see Table 1). The most recent unprofitable transaction took place in 2017.
Source: EdgeProp Buddy (as at 15 January 2025)
Based on transactions from last year, the unit on the 11th storey yielded the second-highest profit for The Regalia. Notably, the unit has been involved in four resale transactions, all of which resulted in profits for the sellers (see Table 2). However, last month’s transaction is the only one for the unit that yielded a profit exceeding $1 million.
Source: EdgeProp Buddy (as at 15 January 2025)
The 1,216-sq ft unit features three bedrooms and has a regular layout that should appeal to most buyers. It also boasts a unique semi-circular balcony that is directly accessible from both the living room and the en-suite master bedroom. Additionally, the yard of this spacious unit includes a utility room and a bathroom that can be converted into a helper’s room without sacrificing storage space, as there is a storeroom located near the kitchen (see Floor Plan 1).
Source: EdgeProp Research
The unit that yielded last year’s highest profit of $1.76 million for The Regalia is a four-bedroom unit on the 21st storey, which is the top floor of the development. The 2,573-sq ft unit was sold in January last year for $5.76 million ($2,239 psf). The seller had purchased the unit in August 2012 for $4 million ($1,555 psf).
The unit on the 21st storey features an en-suite master bedroom and three common bedrooms, each with access to a nearby common bathroom (see Floor Plan 2). This layout ensures that occupants of each bedroom can have their own bathroom. The unit also includes a spacious living and dining area, making it ideal for family living.
Source: EdgeProp Research
Only three transactions yielded profits exceeding $1 million
At the time of writing, only three transactions for The Regalia have yielded profits of at least $1 million. Of these three transactions, two occurred last year.
The third transaction took place in September 2007 which yielded a profit of $1.15 million. The seller sold the 1,249-sq ft unit for $1.92 million ($1,538 psf) after purchasing it in August 2005 for $770,000 ($617 psf). Interestingly, the three-bedroom unit was sold again in June 2013 for $1.97 million ($1,578 psf), earning the seller a profit of $50,000 (see Table 3).
Source: EdgeProp Buddy (as at 15 January 2025)
The 1,249-sq ft unit features an en-suite master bedroom, while the two common bedrooms share a single bathroom. The unit also includes a small balcony, accessible only via the living area (see Floor Plan 3).
Source: EdgeProp Research
Most recent unprofitable transaction was in 2017
At the time of writing, there have been only 22 unprofitable transactions at The Regalia, with losses ranging from breakeven to approximately $690,000. The most recent unprofitable transaction occurred in October 2017, while the transaction with the highest loss took place in August 2004.
The most recent unprofitable transaction involved a three-bedroom unit on the second storey. The seller purchased the unit in December 2007 for $1.87 million ($1,498 psf) and sold it in October 2017 for $1.75 million ($1,402 psf), resulting in a loss of $120,000. The 1,249-sq ft unit shares the same size and layout (see Floor Plan 3) as the aforementioned unit that yielded a profit of $1.15 million.
Interestingly, the unprofitable unit on the second storey was previously involved in a profitable transaction. In June 2007, the unit was purchased by another buyer for $1.45 million ($1,161 psf). However, the buyer held it for only a few months before selling it in December 2007 for $1.87 million ($1,498 psf), resulting in a profit of $420,000 (see Table 4).
Source: EdgeProp Buddy (as at 15 January 2025)
The unit involved in the transaction that yielded the highest loss of $690,000 is a three-bedroom unit on the 18th storey. The 1,270-sq ft unit was sold in August 2004 for $810,000 ($638 psf). The seller had purchased the unit in September 1996 for $1.5 million ($1,181 psf). The three-bedroom unit has a floor plan very similar to the unit that yielded the second-highest profit of $1.15 million (see Floor Plan 4).
Source: EdgeProp Research
Many freehold condos in the neighbourhood
There are 65 condos, representing approximately 7,700 units, within a 500m radius of The Regalia. Of the 65 neighbouring condos, 11 have a tenure of 999 years, three have a tenure of 99 years, and the remaining 51 condos are freehold developments (see Table 5).
Source: EdgeProp Is it a Good Deal (as at 15 January 2025)
The Morningside, La Crystal, Claremont, River Valley Court, and Urbana are the nearest freehold developments to The Regalia. However, there were no sale transactions for The Morningside and River Valley Court last year. Urbana obtained its TOP in 2007, making it significantly younger than The Regalia (TOP in 1993). As such, the most comparable neighbours are La Crystal (TOP in 1996) and Claremont (TOP in 2000). Furthermore, the 85-unit La Crystal and the 67-unit Claremont are located along Killiney Road, and across the road from The Regalia (see Map 2).
Source: EdgeProp LandLens (as at 15 January 2025)
Increasing demand for The Regalia
Since 2013, there have been no more than three resale transactions per year for The Regalia (see Chart 1). However, four resale transactions took place for the freehold development last year. Furthermore, all four transactions resulted in profits for the sellers (see Table 1 above).
Source: EdgeProp Market Trends (as at 15 January 2025)
Similar to The Regalia, more resale transactions were also concluded for La Crystal and Claremont last year. In 2023, La Crystal and Claremont saw only two resale transactions each, but last year, there were four resale transactions for La Crystal and five resale transactions for Claremont.
The increased demand pushed up the average resale prices for La Crystal and Claremont. Last year, the average resale price for La Crystal grew by 1.7% y-o-y to $2,096 psf, while the average resale price for Claremont increased by 7.1% y-o-y to $2,125 psf. However, the average resale prices for both condos are still lower than that for The Regalia ($2,226 psf) (see Chart 2).
Source: EdgeProp Market Trends (as at 15 January 2025)
Last year’s most profitable transaction for La Crystal took place last month and involved a two-bedroom unit on the third storey. The seller bought the unit in January 2006 for $650,000 ($694 psf) and sold it for nearly $1.89 million ($2,017 psf). The profit of approximately $1.24 million is the highest profit recorded for La Crystal.
Similarly, the highest profit for Claremont came from a transaction that took place last year. In January last year, the seller sold a three-bedroom unit for $3 million ($2,064 psf), resulting in a profit of $1.88 million. The seller had purchased the 1,453-sq ft unit in September 2006 for $1.12 million ($771 psf). Interestingly, the preceding buyer suffered a loss of approximately $316,000 when selling the fourth-storey unit in September 2006. The preceding buyer had purchased the unit in May 2000 for approximately $1.44 million ($988 psf) (see Table 6).
Conclusion
The Regalia has experienced a recent increase in demand, which has boosted its average resale price. The higher demand for the condo could be attributed to the completion of Stage 4 of the Thomson-East Coast Line (TEL) last year.
The neighbourhood has also benefited from the completion of The Avenir, a freehold development located adjacent to The Regalia. The 376-unit freehold development obtained its TOP last year. Sales for The Avenir started slowly, with only 20 units sold during its launch weekend in January 2020. However, interest in the freehold development grew, and the developer managed to sell all units by 2023. Last year, The Avenir recorded three sub-sale transactions at an average price of $3,394 psf, significantly higher than the average resale price of $2,226 psf for The Regalia.
There are three upcoming condos, located within a 1km radius of The Regalia, that are expected to be launched this year. These upcoming condos include River Green and the developments on Zion Road (Parcels A and B) government land sale (GLS) sites (see Screenshot 3). These future developments are expected to draw more attention to the area, potentially boosting demand and prices for existing condos.
Source: EdgeProp Is it a Good Deal (as at 15 January 2025)
Lastly, The Regalia is an older development with a freehold tenure. It is also located in a prime district. These attributes make the condo a potential candidate for collective sale, which could attract savvy investors.
To learn more about this transaction, and whether it is a good deal, click here.
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