Is it a Good Deal?: A freehold three-bedder in Bukit Timah sold for $2,144 psf, netting over $2 million profit
By Elizabeth Choong
/ EdgeProp Singapore |
Maple Woods has achieved nine profitable transactions with profits of over $2 million. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – Last month, a three-bedroom unit in Maple Woods was sold for $3.3 million ($2,144 psf). The seller had purchased the 1,539-sq ft unit in April 2009 for $1.277 million ($830 psf), resulting in a profit of $2.023 million.
We used our analytics tool, Is it a Good Deal?, to assess whether the buyer of the three-bedroom unit at Maple Woods secured a bargain.
Short walk to King Albert Park MRT Station
Maple Woods is a freehold condominium located along Bukit Timah Road. Although located within the Bukit Timah Planning Area, the condo is within District 21 instead of District 10. The 697-unit development consists of three- and four-bedroom units, ranging in size from 850 sq ft to 3,132 sq ft. Maple Woods obtained its temporary occupation permit (TOP) in 1997, making it 27 years old. However, its freehold tenure might help to mitigate lease decay.
The condominium is a short walk from King Albert Park MRT Station on the Downtown Line (see Map 1). This MRT station will become an interchange station upon the completion of Phase 2 of the Cross Island Line in 2032.
Source: EdgeProp LandLens (as at 3 December 2024)
Amenities within a 1 km radius include Methodist Girls' School (Primary and Secondary), Pei Hwa Presbyterian Primary School, Bukit Timah Plaza, KAP Mall, and the Pan Island Expressway. Additionally, there are two nearby parks, namely Mayfair Park and Holland Green Linear Park (see Screenshot 1).
Source: EdgeProp Is it a Good Deal (as at 3 December 2024)
Our tool indicated that the transacted price is only slightly above the average price for Maple Woods but lower than that of several neighbouring condos. However, it is higher than the average price for the district (see Screenshot 2).
Source: EdgeProp Is it a Good Deal (as at 3 December 2024)
Nine transactions resulted in profits of at least $2 million
As of the time of writing, Maple Woods has achieved 425 profitable and 133 unprofitable transactions. Among the 425 profitable transactions, 10 occurred this year, with profits ranging from approximately $425,000 to $2.605 million. The most recent unprofitable transaction was in 2017.
To date, nine transactions at Maple Woods have yielded profits of at least $2 million for the seller (see Table 1). Of these, four transacted this year, with profits ranging from approximately $2.023 million to $2.605 million.
Source: EdgeProp Buddy (as at 3 December 2024)
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.
The three-bedroom unit that generated a profit of $2.023 million (see Floor Plan 1) achieved the eighth-highest profit for Maple Woods. The first-storey unit has been involved in two sub-sale and four resale transactions. Unfortunately for the sellers, not all transactions resulted in a profit.
Source: EdgeProp Research
The second owner sold the unit for $1.26 million ($819 psf) in July 1999 after purchasing it in January 1996 for the same price. The fourth owner incurred a loss of $108,100 when they sold the 1,539-sq ft unit in April 2009 for $1.277 million ($830 psf). They had bought the unit in December 2007 for $1.385 million ($900 psf) (see Table 2).
Source: EdgeProp Buddy (as at 3 December 2024)
The fourth owner incurred a loss because they sold the unit at $830 psf, significantly lower than the average resale price of $963 psf for Maple Woods in 2009. This occurred despite the fourth owner purchasing the unit at a below-average price. In 2007, they paid $900 psf for the unit, while the average resale price for Maple Woods at the time was $935 psf (see Chart 1).
Source: EdgeProp Market Trends (as at 3 December 2024)
In contrast, the fifth owner achieved a profit of $2.023 million by purchasing the unit at a below-average price and selling it at an above-average price. In 2009, the fifth owner paid $830 psf for the unit, compared to the average resale price of $935 psf that year. This year, they sold the unit at $2,144 psf, above the prevailing average resale price of $2,130 psf.
The 1,539-sq ft unit that generated a profit of $2.023 million features an en-suite master bedroom with a dressing area, while the remaining two bedrooms have a Jack-and-Jill configuration, allowing them to be connected to a common bathroom (see Floor Plan 1). The unit also includes a utility room and a toilet in the yard area. Additionally, the unit has a storeroom, enabling the utility room to be converted into a helper’s room without sacrificing storage space.
The transaction that yielded a profit of approximately $2.605 million is the highest profit recorded this year and the third highest for Maple Woods (see Table 1). The seller purchased the four-bedroom unit on the eighth storey in September 1998 for $2.395 million ($798 psf) and sold it for $5 million ($1,665 psf) in September this year.
The sale price of $1,665 psf is significantly lower than the prevailing average resale price of $2,130 psf for Maple Woods. Similarly, the purchase price of $798 psf was higher than the average price of $690 psf for Maple Woods in 1998 (see Chart 1). However, the seller was able to pocket a record-high profit by holding onto the unit for approximately 26 years. Between 1998 and 2024, the average price for Maple Woods increased by 208.7% to $2,130 psf.
The four-bedroom unit is a penthouse spanning 3,003 sq ft (see Floor Plan 2). It features an en-suite master bedroom with a walk-in wardrobe and a private balcony. Bedroom 4 also has an attached bathroom, while Bedrooms 2 and 3 have direct access to a common bathroom.
Source: EdgeProp Research
Nine condos within walking distance
There are nine condominiums, representing 1,895 units, within a 500m radius of Maple Woods. Of these nine neighbouring condominiums, six have freehold tenures, similar to Maple Woods. One of them, The Blossomvale, has a 999-year leasehold tenure, while the remaining two developments, Mayfair Gardens and Mayfair Modern, have 99-year leasehold tenures.
Among its freehold neighbours, Maple Woods is the largest development, with 697 units. Casa Esperanza and 1 King Albert Park are much smaller, with 90 and 101 units, respectively. The Nexus (242 units), Floridian (336 units), The Sterling (232 units), and The Cascadia (288 units) are larger developments. The Nexus and Floridian are located adjacent to Maple Woods, while The Sterling and The Cascadia are further away (see Map 2).
Source: EdgeProp LandLens (as at 3 December 2024)
Among the four freehold neighbours, The Sterling (TOP in 2000) is the closest in age to Maple Woods (TOP in 1997), followed by The Nexus (TOP in 2006), The Cascadia (TOP in 2010), and The Floridian (TOP in 2012) (see Table 3).
Source: EdgeProp Is it a Good Deal (as at 3 December 2024)
Trending above counterparts in same district
Despite being nine years older, the average resale price for Maple Woods was higher than that of The Nexus from 2020 to last year (see Chart 2). This year, the average resale price for Maple Woods ($2,130 psf) dipped below that of The Nexus ($2,176 psf). Nevertheless, the average resale prices for both developments are significantly higher than the average for freehold condos in District 21 ($1,725 psf). Since 2020, the price growth for Maple Woods (23.3%) has lagged behind that of The Nexus (33.4%) and District 21 (27.4%).
Source: EdgeProp Market Trends (as at 3 December 2024)
The Nexus has significantly smaller profits
There have been only five profitable transactions for The Nexus this year, with profits ranging from approximately $550,000 to $1.463 million. Of these five recent profitable transactions, only two resulted in profits exceeding $1 million. Despite being nine years younger than Maple Woods, the profits achieved by The Nexus are significantly smaller. The most recent unprofitable transaction for The Nexus occurred in 2011.
The record-high profit of $1.463 million was generated by the sale of a two-bedroom unit in May for $2.22 million ($2,344 psf). In December 2006, the seller purchased the unit on the third storey for $757,000 ($799 psf). The 947-sq ft unit features an en-suite master bedroom, with the common bedroom located across the hallway from the common bathroom. The unit also includes separate dry and wet kitchens (see Floor Plan 3).
Source: EdgeProp Research
The most recent profitable transaction for The Nexus also involves a two-bedroom unit measuring 947 sq ft, which shares the same layout as the unit that generated the record-high profit of $1.463 million. The unit on the seventh storey was sold in July for $2 million ($2,111 psf), resulting in a profit of $1.16 million. The seller had purchased the unit in February 2007 for $840,000 ($887 psf).
Notably, this is not the first profitable transaction for this unit. The first owner purchased the unit directly from the developer in October 2006 for $741,500 ($783 psf) before selling it in February 2007 for $840,000 ($887 psf), yielding a profit of $98,500 (see Table 4).
Source: EdgeProp Buddy (as at 3 December 2024)
Conclusion
The price of $2,144 psf might seem high, especially when compared to the prevailing average resale prices for Maple Woods ($2,130 psf) and freehold condos in the same district ($1,725 psf). However, Maple Woods has yielded profits significantly higher than those of The Nexus, its nearest neighbour, despite The Nexus being nine years younger.
Furthermore, the subject unit is a spacious three-bedroom apartment measuring 1,539 sq ft, an ideal size for families. Two reputable schools are located just a short walk away. Nearby King Albert Park MRT Station will become an interchange station in 2032.
To learn more about this transaction, and whether it is a good deal, click here.
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