Project Spotlight: This Bishan condo has over 700 profitable transactions
By Elizabeth Choong
/ EdgeProp Singapore |
The Gardens At Bishan is the most profitable condo in Bishan. (Photo: EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – Bishan is a popular residential enclave in the Central Region of Singapore. The popularity of the neighbourhood can be attributed to its wide variety of amenities, including reputable schools such as Ai Tong School, Catholic High School (Primary and Secondary), and Raffles Institution (Secondary and Junior College).
Price growth for 99-year leasehold condos in the Bishan Planning Area is significantly stronger compared to their counterparts in the Central Region and islandwide. Since 2014, the average resale price for leasehold condos in Bishan surged by 76.6% to $1,812 psf. In contrast, the average price for similar condos in the Central Region increased by 39% to $1,982 psf, while their counterparts islandwide rose by 53.4% to $1,632 psf (see Chart 1).
The average resale price for leasehold condos in Bishan is still trending below that of similar condos in the Central Region. However, the price gap between condos in both locations has narrowed from $419 psf in 2019 to $199 psf in 2021, and to $170 psf this year. Those who wish to purchase a condo unit in the Central Region, albeit at more affordable prices, may want to consider Bishan. However, they will have to act soon before the price gap narrows further.
One of the leasehold condos in Bishan that buyers may want to consider is The Gardens At Bishan because it has the highest number of profitable transactions among all condo developments in Bishan. At the time of writing, The Gardens At Bishan has 739 profitable and 26 unprofitable transactions.
Adjacent to Bright Hill MRT Station
The Gardens At Bishan is located along Sin Ming Walk within District 20. The 99-year leasehold condo is adjacent to Bright Hill MRT Station on the Thomson-East Coast Line (TEL), which opened in August 2021 (see Map 1).
Bright Hill MRT Station is only two stops away from Caldecott MRT Station and three stops away from Stevens MRT Station. Commuters can connect to the Circle Line at Caldecott Station and the Downtown Line at Stevens Station. Furthermore, Bright Hill MRT Station will be an interchange station under Phase 1 of the Cross Island Line (CRL), when it is completed in 2030.
Other amenities within a 1 km radius include Ai Tong Primary School, Pierce Secondary School, Mayflower Secondary School, Kebun Baru Mall, Kebun Baru Market and Food Centre, Sembawang Hills Food Centre, Kallang River, and Lower Pierce Reservoir Park.
Source: EdgeProp LandLens (as at 22 July 2024)
The Gardens at Bishan obtained its temporary occupation permit (TOP) in 2004. The 756-unit development features one-bedroom to four-bedroom units that range in size from 861 sq ft to 2,756 sq ft. Facilities in the development include a clubhouse, tennis courts, squash courts, a children’s playground, and several pools (see Map 2).
Source: EdgeProp Research
Holding power matters
Despite its location in a non-prime district and not having a freehold tenure, The Gardens At Bishan still achieved 739 profitable transactions with profits ranging from approximately $100 to $2.27 million. The condo also has 26 unprofitable transactions with losses ranging from approximately $15,000 to $235,000. Notably, all losses have remained well under $250,000.
It is noteworthy that all three top profitable transactions for The Gardens At Bishan feature four-bedroom units that measure at least 1,500 sq ft. Furthermore, all three units were sold post-pandemic and generated a profit of at least $1.4 million for each seller (see Table 1).
According to caveats lodged with URA, all three sellers likely bought their units directly from the developer. Furthermore, the resale transaction noted in Table 1 is the only resale transaction for each of the units. As such, the sellers owned the units for at least 18 years before selling them, which is a good indicator that holding power matters.
Interestingly, the transaction that yielded the highest profit of $2.27 million took place earlier this year. The transacted unit is a four-bedroom unit that measures 2,336 sq ft. It has an efficient dumbbell layout with the kitchen, living room, and dining area sandwiched between the bedrooms and bathrooms. There are also two sizable terraces that will be appreciated by residents who like having private outdoor spaces (see Floor Plan 1).
Source: EdgeProp Research
In contrast, the most recent profitable transactions that took place in either June or July generated lower profits of less than $1 million for their sellers who held their units for 13 years or less (see Table 2). Furthermore, all four units have had more than one resale transaction.
Among the four transactions, #03-XX exchanged hands the most frequently, chalking up five resale transactions. The other three units have had three or four resale transactions, and all of these transactions resulted in a profit for the sellers.
Likewise, all resale transactions for #03-XX generated profits for its sellers, except the transaction that took place in January 2018. The seller sold the unit for $1,006 psf after purchasing it in October 2012 for $1,019 psf, resulting in a loss of approximately $16,000.
The popularity of the three-bedroom unit could be attributed to its compact but efficient layout, which makes it suitable for a family. The unit has sizable living and dining areas as well as a yard that can be used as a laundry area. The unit also has a utilities room near the kitchen that can be used as a helper’s room. Additionally, there is a small storeroom near Bathroom 2, which is a rare feature in newer condos (see Floor Plan 2).
Source: EdgeProp Research
Unprofitable transactions could be attributed to timing
It is notable that all three top unprofitable transactions took place in either 2003 or 2005 (see Table 3). The silver lining is that all three transactions resulted in losses under $250,000.
Unit #01-XX was sold in a sub-sale in June 2003 and incurred a loss of approximately $150,000. During that year, Singapore experienced SARS which placed downward pressure on property prices. That year, the average price for The Gardens At Bishan was $507 psf. In 2003, the sales volume for the development was 223 units, down from 326 units in the previous year (see Chart 2).
Unit #05-XX was sold in August 2005 for a loss of approximately $106,000. That year, the average price for The Gardens At Bishan fell to $503 psf, driven by lower demand. Only 30 transactions took place for the development in 2005.
Source: EdgeProp Market Trends (as at 25 July 2024)
Both units have more than one sale transaction in the secondary market, and the transactions not in Table 3 resulted in a profit for the seller. Unit #01-XX was sold again in April 2014 for $920 psf, allowing the second owner to pocket a profit of approximately $816,000. This profit may be attributed to the fact that the seller bought the unit at $428 psf in June 2003, which was lower than the average price of $507 psf for the development that year. As a result, the second owner still managed to earn a profit despite selling the unit for $920 psf, which was below the average price of $1,016 psf for the development at that time.
The second owner of #05-XX earned a profit of approximately $1.039 million when the unit was sold in September 2021 for $1,271 psf. This substantial profit could be due to the sale price being higher than the development’s average price of $1,218 psf that year. Additionally, the seller bought the unit for $424 psf in August 2005, which was significantly lower than the average price of $503 psf for the development that year.
More profitable than leasehold neighbours
There are six other condos with approximately 1,200 units that are within walking distance of The Gardens At Bishan. However, only Bishan Park Condominium and Thomson Grand are 99-year leasehold developments. The other four condos, namely Country Esquire, Country Grandeur, Faber Garden Condominium, and Flame Tree Park, have freehold tenures.
Like The Gardens At Bishan, Bishan Park Condominium and Thomson Grand are located along Sin Ming Walk and are within walking distance of Bright Hill MRT Station (see Map 3). However, Bishan Park Condominium (320 units) and Thomson Grand (339 units and 22 landed) have fewer units than The Gardens At Bishan (756 units).
Source: EdgeProp LandLens (as at 26 July 2024)
Both neighbouring condos have fewer profitable transactions and more unprofitable transactions compared to The Gardens At Bishan (see Table 4). It is noteworthy that the highest loss of approximately $235,000 for The Gardens At Bishan is significantly lower than the highest losses of approximately $462,000 and $603,000 for Bishan Park Condominium and Thomson Grand, respectively.
The top three most unprofitable transactions for Bishan Park Condominium occurred in either 2004 or 2006. In contrast, the top three most unprofitable transactions for Thomson Grand condo units took place more recently (see Table 5).
One of the top three unprofitable transactions for Thomson Grand took place last year. The transacted unit is a four-bedroom penthouse that yielded a loss of approximately $359,000. According to caveats lodged with URA, the resale transaction that took place last year is the only resale transaction for the unit.
The penthouse is a spacious 2,196-sq ft unit with ample space for a family room between the master bedroom and Bedrooms 3 and 4. The unit also has a private lift and three balconies. One of the balconies is accessible via the master bedroom and features a jacuzzi (see Floor Plan 3). While the balconies offer residents some outdoor space, they could be deemed excessive and a waste of space for those who prefer more usable indoor space.
Source: EdgeProp Research
Affordability and connectivity boost profitability
The Gardens At Bishan offers good value for money due to its profitability and close proximity to an MRT station. Furthermore, the average price for The Gardens At Bishan ($1,554 psf) is trending lower than its counterparts in the Bishan Planning Area ($1,812 psf) and islandwide ($1,632 psf) (see Chart 3).
Source: EdgeProp Market Trends (as at 26 July 2024)
Unsurprisingly, Thomson Grand ($1,699 psf) has the highest average resale price compared to The Gardens At Bishan ($1,554 psf) and Bishan Park Condominium ($1,360 psf) (see Chart 4). This could be attributed to the differences in the ages of the three condos. Bishan Park Condominium (TOP in 1994) is 10 years older than The Gardens At Bishan (TOP in 2004), while Thomson Grand (TOP in 2015) is 11 years younger.
Source: EdgeProp Market Trends (as at 26 July 2024)
Despite being significantly younger than The Gardens At Bishan and Bishan Park Condominium, Thomson Grand has experienced the weakest price growth. Since 2017, the average resale price for Thomson Grand has risen by 33.6%, compared to a 57.6% increase for Bishan Park Condominium and a 53.1% growth for The Gardens At Bishan.
All three condos have benefited from the opening of Bright Hill MRT Station in 2021. Since then, the average resale price for The Gardens At Bishan has grown by 27.6%, while that for Bishan Park Condominium and Thomson Grand have risen by 25.9% and 19.3%, respectively. The strong price growth for The Gardens At Bishan compared to the other two condos could be attributed to its closer proximity to the MRT station.
The popularity of The Gardens At Bishan is evident in its resale volume. In 2021, the resale volume for The Gardens At Bishan shot up to a record high of 49 units, up from 28 units in 2020 (see Chart 5). Thus far this year, the resale volume for The Gardens At Bishan has eased to 19 units, while Bishan Park Condominium and Thomson Grand have achieved eight and 14 resale transactions, respectively.
Source: EdgeProp Market Trends (as at 26 July 2024)
Conclusion
Bishan has always been a popular residential enclave due to the numerous amenities and reputable schools in the neighbourhood. The stellar sales performance of AMO Residences is a good indicator that demand for leasehold condos in Bishan is expected to remain strong. AMO Residences was launched in July 2022, and 98% of its 372 units were sold on the first day of launch. The condo is located within a 1 km radius of The Gardens At Bishan and reputable schools such as Ai Tong Primary School and CHIJ St. Nicholas Girls’ School (Primary and Secondary).
The Gardens At Bishan is the most profitable condo in this popular neighbourhood because of its comparatively affordable price, strong price growth, and family-friendly floor layout. Demand for The Gardens At Bishan was further boosted when the adjacent Bright Hill MRT Station opened in 2021.
Check out the latest listings for The Gardens At Bishan, Thomson Grand, Bishan Park Condominium properties
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