Is it a Good Deal?: A 99-year leasehold three-bedder in Bedok sold for $1,098 psf
By Elizabeth Choong
/ EdgeProp Singapore |
The Clearwater just achieved a record-high profit of $1.94 million. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – Last month, a three-bedroom unit in The Clearwater was sold for $2.73 million ($1,098 psf), resulting in a profit of $1.94 million, which is a record-high for the 99-year leasehold condo. The seller had purchased the 2,486-sq ft unit on the 15th storey in June 2006 for $790,000 ($318 psf).
We used our analytics tool, Is it a Good Deal?, to evaluate whether the buyer of the three-bedroom unit at The Clearwater secured a bargain.
Short walk to MRT and two primary schools
The Clearwater is a 99-year leasehold condo located along Bedok Reservoir View in District 16. The 420-unit development features one- to five-bedroom units, ranging in size from 657 sq ft to 2,487 sq ft.
The Clearwater is conveniently located next to Bedok Reservoir MRT Station (Downtown Line) and opposite Bedok Reservoir Park. The condo is also a short drive from the Pan Island Expressway. Red Swastika School and Yu Neng Primary School are within a 500m radius while Fengshan Primary School and St. Anthony’s Canossian Primary School are within a 1km radius (see Map 1).
Source: EdgeProp LandLens (as at 19 November 2024)
The main drawback of The Clearwater is its age. The condo obtained its temporary occupation permit (TOP) in 2001, making it 23 years old. Additionally, it has a 99-year leasehold tenure that began in 1997, leaving a remaining tenure of 72 years (see Screenshot 1).
Source: EdgeProp Is it a Good Deal (as at 19 November 2024)
Our tool also highlighted that the transacted price is lower than the average price for the district and several neighbouring condos (see Screenshot 2). This lower-than-average transacted price could be attributed to lease decay of The Clearwater.
Source: EdgeProp Is it a Good Deal (as at 19 November 2024)
Two transactions with profits of at least $1.2 million
At the time of writing, The Clearwater has achieved 359 profitable and 57 unprofitable transactions. Profits range from approximately $695 to $1.94 million, while losses range from breakeven to approximately $320,000. Of the 359 profitable transactions, 12 occurred this year, while the most recent unprofitable transaction was in 2018.
To date, only two transactions at The Clearwater have yielded profits of at least $1.2 million. One of these is the aforementioned three-bedroom unit, which earned a profit of $1.94 million (see Table 1).
Source: EdgeProp Buddy (as at 19 November 20204)
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.
Interestingly, the unit that generated the record-high profit also incurred a loss of $87,422 when it was sold in June 2006 for $790,000 ($318 psf). The first owner had purchased it in March 1999 for $877,422 ($353 psf) (see Table 2).
Source: EdgeProp Buddy (as at 19 November 2024)
The first owner incurred a loss because the unit was sold at $318 psf in 2006, while the average price for The Clearwater at the time was $426 psf. Additionally, the sale occurred just as prices for the condo had recovered from a record-low average of $412 psf in 2005 (see Chart 1).
The second owner managed to secure a good deal when purchasing the unit, enabling them to earn a profit of $1.94 million, even though the unit was sold at a below-average price of $1,098 psf. The prevailing average price for The Clearwater is $1,234 psf.
Source: EdgeProp Market Trends (as at 19 November 2024)
The unit that achieved the record-high profit measures 2,486 sq ft. It features three bedrooms, including an en-suite master bedroom (see Floor Plan 1). The unit also includes a spacious kitchen with a yard and a utilities room. Additionally, a toilet adjacent to the utilities room makes it easy to convert the utilities room into a helper’s room.
Source: EdgeProp Research
The transaction that yielded the second-highest profit of $1.782 million occurred in November 2022 (see Table 1). The four-bedroom duplex, measuring 2,422 sq ft, was sold for $2.78 million ($1,148 psf). The seller had purchased it in September 1999 for $997,650 ($412 psf).
The lower level of the duplex features an en-suite master bedroom, two additional bedrooms, a common bathroom, and living/dining areas. The upper level includes an en-suite bedroom and a private roof terrace (see Floor Plan 2).
Source: EdgeProp Research
Most recent unprofitable transaction was in 2018
The most recent unprofitable transaction for The Clearwater occurred in September 2018. The unit involved is a four-bedroom flat measuring 2,303 sq ft. The seller purchased it in July 2012 for $1.88 million ($816 psf) and sold it for $1.8 million ($781 psf), resulting in a loss of $80,000.
However, the same unit had previously yielded a profit of approximately $937,369. The first owner bought the unit in April 1999 for $942,631 ($409 psf) and sold it in July 2012 for $1.88 million ($816 psf).
The unit shares a similar floor layout with the one that achieved the second-highest profit of $1.782 million. Both are four-bedroom duplexes with an en-suite bedroom and roof terrace on the upper level. The remaining bedrooms, living/dining areas, and kitchen are on the lower level (see Floor Plan 3).
Source: EdgeProp Research
Four neighbouring condos
There are four condos, representing 1,794 units, within a 500m radius of The Clearwater. Similar to The Clearwater, all four neighbouring condos are 99-year leasehold developments. However, Baywater is five years younger (TOP in 2006), while Waterfront Waves (TOP in 2011) and Waterfront Key (TOP in 2012) are younger by 10 and 11 years, respectively. Only Aquarius by the Park (TOP in 2001) is the same age as The Clearwater, having obtained its TOP in the same year (see Table 3).
Source: EdgeProp Is it a Good Deal (as at 19 November 2024)
The Clearwater and Aquarius by the Park are located adjacent to each other (see Map 2). However, Aquarius by the Park is further from Bedok Reservoir MRT Station.
Source: EdgeProp LandLens (as at 19 November 2024)
Trending below District 16
The average resale prices for The Clearwater ($1,234 psf) and Aquarius by the Park ($1,285 psf) are consistently below the average for 99-year leasehold condos in District 16 ($1,467 psf) (see Chart 2). The average resale price for The Clearwater was higher than that of Aquarius by the Park until this year.
Since 2020, Aquarius by the Park has experienced stronger price growth (44.7%) compared to The Clearwater (26.4%). The price growth for The Clearwater is also lower than that of District 16 (36.3%).
Source: EdgeProp Market Trends (as at 19 November 2024)
Smaller profits for Aquarius by the Park
Despite a higher resale price and stronger price growth, the highest profit achieved by Aquarius by the Park is $1.35 million, which is lower than the record-high $1.94 million achieved by The Clearwater. At the time of writing, there are 591 profitable and 144 unprofitable transactions for Aquarius by the Park.
The record-high profit of $1.35 million for Aquarius by the Park was achieved by a three-bedroom unit on the 18th storey. The seller purchased the unit in June 2001 for $1.02 million ($467 psf) and sold it in May last year for $2.37 million ($1,085 psf).
The 2,185-sq ft unit is a duplex with an en-suite master bedroom, living/dining area, and kitchen on the lower level. The upper level contains the remaining two bedrooms, a bathroom, a family room, and a roof terrace (see Floor Plan 4).
Source: EdgeProp Research
The most recent profitable transaction for Aquarius by the Park took place last month. The three-bedroom unit was purchased in August 2001 for $625,220 ($510 psf) and sold for $1.6 million ($1,304 psf), resulting in a profit of $974,780.
The 1,227-sq ft unit is located on the seventh storey and has a regular layout (see Floor Plan 5). It features an en-suite master bedroom and a second en-suite bedroom. The unit also includes a sizable kitchen with a yard and a utilities room with a nearby toilet.
Source: EdgeProp Research
The most recent unprofitable transaction for Aquarius by the Park took place in October 2021, marking the third resale transaction for the unit (see Table 4). The third owner bought the 893-sq ft unit in January 2013 for $908,888 ($1,017 psf) and sold it for $860,000 ($963 psf), resulting in a loss of $48,888.
The first owner also incurred a small loss of $15,000 when the same unit was sold in September 2005 for $420,000 ($470 psf). The unit was originally purchased by the first owner in March 1999 for $435,000 ($487 psf). In contrast, the second owner made a profit of $488,888. The second owner purchased the unit in September 2005 for $420,000 ($470 psf) and sold it in January 2013 for $908,888 ($1,017 psf).
Source: EdgeProp Buddy (as at 19 November 20204)
The unit is a two-bedroom flat with an en-suite master bedroom, a common bedroom, and a common bathroom. The unit also features a balcony that is accessible from the living/dining area (see Floor Plan 6).
Source: EdgeProp Research
Conclusion
The price tag of $2.73 million for the three-bedroom unit in The Clearwater may seem high, especially considering the condo is an aging leasehold development. However, some buyers may consider it a bargain, as its price of $1,098 psf is lower than the average resale price for The Clearwater ($1,234 psf) and 99-year leasehold condos in the same district ($1,467 psf).
Furthermore, The Clearwater is located a short walk from Bedok Reservoir MRT Station and a short drive to the Pan Island Expressway. The development should appeal to families and nature lovers, as there are four primary schools within a 1km radius, and Bedok Reservoir Park is just across the road.
To learn more about this transaction, and whether it is a good deal, click here.
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