Is it a Good Deal?: This freehold condo in D9 sold for a loss of $163,000
By Elizabeth Choong
/ EdgeProp Singapore |
Only one transacted unit for Belle Vue Residences thus far this year. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – Last month, a four-bedroom intermediate villa unit at Belle Vue Residences sold for $2,036 psf, resulting in a loss of approximately $163,000 for the seller. The unit was purchased in June 2012 for $2,100 psf. Although the loss was less than $100 psf, the total loss was amplified by the size of the unit, which measures 2,530 sq ft.
Source: EdgeProp Research
At the time of writing, this transaction was the only sale recorded for Belle Vue Residences this year. Only two units in the condo were sold last year, and one of them resulted in a loss of approximately $437,000. This loss-making transaction concluded in July 2023 for a four-bedroom unit measuring 3,832 sq ft.
We used our analytics tool, 'Is it a Good Deal?', to assess whether the unprofitable sale that took place this year constituted a good bargain for the buyer.
Belle Vue Residences is a freehold development in District 9
Belle Vue Residences is located along Oxley Walk in the River Valley Planning Area and within prime District 9. The development comprises 176 units ranging from two to five bedrooms. The freehold condo obtained its temporary occupation permit (TOP) in 2010.
Fort Canning Park, Robertson Walk, UE Shopping Mall, and Fort Canning MRT Station are among the amenities within walking distance of Belle Vue Residences. River Valley Primary School, St. Margaret’s School (Primary), School of the Arts, and Dimensions International College (City Campus) are all within a 1km radius.
Source: EdgeProp LandLens (as at 2 May 2024)
Did the buyer secure a bargain?
According to our 'Is it a Good Deal?' analytics tool, it appears that the buyer has secured a good deal because the transacted price of $2,036 psf is 11.3% below the average price for District 9 and lower than the average price for several neighbouring developments.
However, the transacted price is also 9.1% higher than the average price for Belle Vue Residences, based on transactions that took place over the past 12 months.
Source: EdgeProp Is it a Good Deal (as at 2 May 2024)
Average price for Belle Vue Residences trends below average for freehold condos in same district
Since 2014, the average resale price for Belle Vue Residences has consistently trended below the average resale price for freehold condos in District 9. Based on transactions for this year, the average resale price for Belle Vue Residences is $2,036 psf, which is $316 psf lower than the average price of $2,352 psf for freehold condos in the same district.
Source: EdgeProp Market Trends (as at 2 May 2024)
Despite the significant price difference, the resale price growth for Belle Vue Residences has kept pace with its counterparts in the same district. From 2014 to this year, the average resale prices for Belle Vue Residences and freehold condos in District 9 grew by 17.1% and 19%, respectively.
Belle Vue Residences has the second lowest average price
There are nine comparable condos located in close proximity to Belle Vue Residences. Only Waterford Residence ($1,680 psf) has an average price (based on transactions over the past 12 months) that is lower than Belle Vue Residences ($1,866 psf).
Waterford Residence obtained its TOP in the same year as Belle Vue Residences. However, the 118-unit development has a tenure of 999 years, unlike the freehold Belle Vue Residences. The leasehold tenure for Waterford Residence could have contributed to its lower average price.
Among the comparable neighbours of Belle Vue Residences, there are only two freehold developments, namely Visioncrest and One Oxley Rise. Both developments are located in District 9 and are also within a 500m radius of Belle Vue Residences.
Visioncrest is a 265-unit development that obtained its TOP in 2007, while the 89-unit One Oxley Rise obtained its TOP in 2009. Despite being older than Belle Vue Residences, Visioncrest and One Oxley Rise have higher average prices of $2,299 psf and $2,052 psf, respectively.
Source: EdgeProp Is it a Good Deal (as at 2 May 2024)
The higher prices fetched by Visioncrest and One Oxley Rise could be attributed to their closer proximity to Somerset and Dhoby Ghaut compared to Belle Vue Residences. Furthermore, Visioncrest and One Oxley Rise feature only units with one to three bedrooms. Smaller units tend to have a higher price on a per square foot basis compared to their larger counterparts.
A deep dive into the price trends for the three developments indicates that the average price for Visioncrest has trended higher than the other two developments since 2021. Additionally, the price growth for Belle Vue Residences and Visioncrest has kept pace with each other, while One Oxley Rise has experienced slower growth. From 2014 to this year, the average price for Belle Vue Residences and Visioncrest increased by 17.1% and 16.2%, respectively. In contrast, the average price for One Oxley Rise grew by 7.4% from 2014 to 2023. At the time of writing, no sale transactions have been recorded for One Oxley Rise this year.
Source: EdgeProp Market Trends (as at 2 May 2024)
It is not surprising that the average resale price for freehold condos in District 9 trends higher than the average price for freehold condos islandwide. Based on transactions for this year, the average prices for District 9 and islandwide are $2,352 psf and $1,835 psf, respectively.
However, it is notable that the average price for freehold condos in District 9 grew at a significantly slower pace than their counterparts islandwide. From 2014 to this year, the average prices for freehold condos in District 9 and islandwide rose by 19% and 32.6%, respectively.
Source: EdgeProp Market Trends (as at 2 May 2024)
Is it really a Good Deal?
It would seem that the buyer has secured a good deal because the transacted price is significantly lower than two freehold condos in the neighbourhood. Furthermore, the average price for Belle Vue Residences has been lower than its freehold counterparts in the same district.
However, it is noteworthy that the average price for Belle Vue Residences plunged from $1,950 psf in 2022 to $1,676 psf last year. The increase to $2,036 psf this year is based solely on the transaction that we examined. There have been no other transactions for the development this year. Hence, it would be difficult to conclude whether resale prices for Belle Vue Residences are truly on the mend. Furthermore, resale volume has remained less than 10 units per year since 2014.
Source: EdgeProp Market Trends (as at 2 May 2024)
To learn more about this transaction, and whether it is a good deal, click here.
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