Project Spotlight: This condo in Ang Mo Kio has 241 profitable and no unprofitable transactions
By Elizabeth Choong
/ EdgeProp Singapore |
The Panorama has benefitted from the opening of Mayflower MRT Station and the upcoming developments in Lentor. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – The Panorama is a condominium located along Ang Mo Kio Avenue 2, and within District 20 and the Ang Mo Kio Planning Area. It is a short walk from Mayflower MRT Station, Mayflower Market and Food Centre, as well as CHIJ St. Nicholas Girls’ School (Primary and Secondary) (see Map 1).
The 99-year leasehold condo has a remaining land lease of approximately 88 years. Having obtained its temporary occupation permit (TOP) in 2017, the development is relatively young at only seven years old. The Panorama comprises 698 units, ranging from one-bedroom to five-bedrooms, with sizes between 431 sq ft and 2,411 sq ft.
At the time of writing, The Panorama has achieved 241 profitable transactions and no unprofitable ones. In this article, we explore the possible reasons behind the strong profitability of the condominium, despite its suburban location.
Source: EdgeProp LandLens (as at 11 December 2024)
Family-friendly layouts
The 241 profitable transactions for The Panorama have yielded profits ranging from approximately $9,900 to $1.064 million. Only the top two transactions generated profits exceeding $1 million (see Table 1).
Source: EdgeProp Buddy (as at 13 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 transaction that generated the highest profit of approximately $1.064 million involved a five-bedroom unit on the first storey. The 1,561-sq ft unit was sold in March last year for $2.9 million ($1,858 psf). The seller had purchased it in November 2015 for $1.836 million ($1,176 psf).
The five-bedroom unit features a layout that will appeal to multi-generational households (see Floor Plan 1). In addition to an en-suite master bedroom, it includes an en-suite junior master bedroom, which is ideal for grandparents. Furthermore, the unit has both dry and wet kitchens, catering to families who cook frequently. Lastly, it has a storeroom, allowing the utilities room near the yard area to be converted into a helper’s room without compromising storage space.
Source: EdgeProp Research
The transaction that yielded the second-highest profit of approximately $1.056 million took place last month for $2.62 million ($1,963 psf). The seller had purchased the unit on the sixth storey in June 2014 for $1.564 million ($1,172 psf).
The four-bedroom unit measures 1,335 sq ft and features a family-friendly layout (see Floor Plan 2) similar to that of the five-bedroom unit involved in the most profitable transaction. The main difference between the two units is the number of bedrooms. Both units comprises dry and wet kitchens, a yard area with a utilities room, as well as master and junior master bedrooms with attached bathrooms.
Read also: Grange 1866 sets new high of $3,393 psf
Source: EdgeProp Research
The unit involved in the transaction that generated the third-highest profit of $980,000 is also a four-bedroom unit. As it is a penthouse on the 20th storey, it is larger at 2,379 sq ft compared to the units involved in the top two profitable transactions. The seller purchased the penthouse in September 2016 for $3 million ($1,261 psf) and sold it in September 2022 for $3.98 million ($1,673 psf).
Similar to the other units, the penthouse features a family-friendly layout with en-suite master and junior master bedrooms, dry and wet kitchens, and a yard area with a utilities room. The main difference is that the penthouse includes a study nook and a family area (see Floor Plan 3).
Source: EdgeProp Research
The Panorama’s close proximity to a reputable school makes the condominium highly appealing to parents. Hence, it is unsurprising that the three most profitable transactions involve large units with at least four bedrooms. Furthermore, the condo’s proximity to Mayflower MRT Station and other amenities enhances its appeal as an ideal family home.
Benefiting from the Thomson-East Coast Line
The Thomson-East Coast Line (TEL) has been a game-changer for developments near the new MRT line. The Panorama is located just a short walk from Mayflower MRT Station, which is part of Stage 2 of the TEL.
Of the 241 profitable transactions recorded at The Panorama, 133 (55.2% of the total) occurred after Mayflower MRT Station opened in August 2021. Notably, all three of the most profitable transactions took place after the MRT station's opening. The improved connectivity following the completion of the TEL likely gave a boost to property prices in the surrounding area.
The average resale price of The Panorama increased by 34.5%, rising from $1,468 psf in 2020 to the current $1,974 psf. While this price growth is lower than the 39.3% increase for 99-year leasehold condominiums in District 20, it surpasses the 31.5% growth for similar condos islandwide. Nevertheless, the average resale price for The Panorama is higher than that of leasehold condos in District 20 ($1,809 psf) and islandwide ($1,641 psf) (see Chart 1).
Read also: Unit at Island View sold for $3.5 mil profit
Source: EdgeProp Market Trends (as at 13 December 2024)
Spillover benefits from nearby Lentor
Mayflower MRT Station is just one stop away from Lentor MRT Station on the TEL, where several upcoming developments are located. Six government land sales (GLS) sites near Lentor MRT Station have already been awarded (see Map 2). The seventh GLS site was launched for tender in October, with the tender set to close in April next year.
Source: EdgeProp LandLens (as at 11 December 2024)
Of the six awarded GLS sites, five have already launched their condo developments. Combined, these five 99-year leasehold condos offer almost 2,500 units, and most are almost fully sold.
Among the five condos, Lentor Modern was the first to be launched. During its launch in September 2022, the 605-unit development achieved a take-up rate of 84%, which has since increased to 99.8%. Its average new sale price has risen by 12.2%, reaching $2,384 psf based on the most recent new sale transactions concluded in October (see Chart 2).
Lentor Hills Residences was launched in July last year, achieving a take-up rate of 50% at launch. Since then, the take-up rate for the 598-unit development has improved to 98.3%. Additionally, its average new sale price has risen by 4.4%, reaching $2,191 psf based on the latest transactions in November.
The 474-unit Hillock Green achieved a take-up rate of 27.6% during its launch in November last year. Since then, the take-up rate has increased to almost 75%, with its average new sale price rising by 5.3% to $2,240 psf, based on last month’s transactions.
Source: EdgeProp Market Trends (as at 13 December 2024)
Lentor Mansion and Lentoria were both launched in March, but the developments achieved very different sales performances Sduring their respective launches. The 533-unit Lentor Mansion achieved a take-up rate of 75% during its launch, while the 267-unit Lentoria managed only 18.7%.Since then, the take-up rates for Lentor Mansion and Lentoria have increased to 92.7% and 65.2%, respectively. Since their launches, the average new sale price for Lentor Mansion has risen by 2.1% to $2,326 psf, while the average price for Lentoria jumped by 11.6% to $2,372 psf (see Chart 3). Lentor Central Residences is expected to be launched for sale next year.
Source: EdgeProp Market Trends (as at 13 December 2024)
The continuous launches of new condos in Lentor over the past few years have brought much attention to what was once an overlooked neighbourhood. The Panorama, being only one MRT stop away, has inevitably benefitted. Furthermore, the average price for The Panorama ($1,974 psf) is lower than that of the five upcoming condos in Lentor, whose average prices have surpassed the $2,000 psf threshold. As such, The Panorama appears to be a more affordable option for prospective buyers keen to live in the vicinity.
Few comparable neighbouring condos
There are 10 other condos, with approximately 2,700 units, within a 1km radius of The Panorama. Half of these are freehold developments, while the other half have tenures of 99 years. Of the five leasehold condos, four (Lentor Hills Residences, Lentoria, Lentor Mansion, and Amo Residence) are still under construction.
As mentioned earlier, Lentor Hills Residences, Lentoria, and Lentor Mansion are upcoming developments near Lentor MRT Station. Amo Residence was launched in July 2022, achieving a take-up rate of 98%. The 372-unit condo has seen a 15.7% price growth since its launch, with its average new sale price rising to $2,433 psf based on the latest transactions recorded in November last year.
Far Horizon Gardens is the only completed leasehold condo located within a 1km radius of The Panorama. However, it is a smaller development with only 270 units and is also an older development, having obtained its TOP in 1986.
All five freehold neighbouring condos are completed developments, but four of them are significantly smaller than The Panorama, with fewer than 120 units. The largest is The Calrose, with 421 units. However, The Calrose (TOP in 2007) is 10 years older than The Panorama.
Additionally, The Calrose and Far Horizon Gardens are located in close proximity to Lentor MRT Station (see Map 3), unlike The Panorama, which is within walking distance of Mayflower MRT Station.
Source: EdgeProp LandLens (as at 11 December 2024)
Unsurprisingly, the average resale price for The Panorama ($1,974 psf) is higher than that of Far Horizon Gardens ($1,071 psf) and The Calrose ($1,754 psf), because it is the youngest among the trio (see Chart 4).
Lentor and Mayflower MRT Stations opened in 2021. Since then, the average resale price for Far Horizon Gardens has grown by 20.3%, which is lower than the 28.5% increase recorded for the significantly younger The Panorama. In comparison, The Calrose achieved a higher growth rate of 33.2%, which could be attributed to its freehold tenure.
Source: EdgeProp Market Trends (as at 16 December 2024)
Drop in price gave a boost to sales
Interestingly, The Panorama did not launch with great fanfare. When it was launched in January 2014, only three units were sold that month (see Chart 5), and just 52 units were sold in 1Q2014, representing a take-up rate of 7.4%. However, sales improved when the average new sale price dropped to a record low of $1,265 psf in June 2014, resulting in the sale of 103 units that month. A total of 294 units were sold in 2014, representing a take-up rate of 42.1%.
Source: EdgeProp Market Trends (as at 16 December 2024)
The drop in the average new sale price to $1,265 psf for The Panorama gave a boost to its sales, as it became more affordable than other new 99-year leasehold condos in District 20 ($1,280 psf). Furthermore, the average new sale price for The Panorama continued to trend below that of its counterparts in the same district (see Chart 6).
Source: EdgeProp Market Trends (as at 16 December 2024)
The slower start in sales for The Panorama could be due to the introduction of the total debt servicing ratio (TDSR) framework in June 2013, which affected the amount of mortgage loan that homebuyers could obtain.
Low purchase price can lead to high profits
The seller of the most profitable unit bought it in 2015 at $1,176 psf when the average new sale price for The Panorama was higher at $1,229 psf (see Chart 7). The lower-than-average purchase price allowed the owner to earn an eye-watering profit despite selling at a lower-than-average price. The seller sold the unit at $1,858 psf last year, when the average resale price was $1,901 psf.
Likewise, the seller of the unit that yielded the second-highest profit purchased it at a lower-than-average price which allowed them to still make a profit, despite selling it at a lower-than-average price. The seller bought the unit in 2014 for $1,172 psf, when the average new sale price for the condo was $1,289 psf. The unit was sold this year for $1,963 psf, when the current average resale price for The Panorama is $1,974 psf.
Both sellers benefitted from the decrease in the average new price for The Panorama. This highlights the importance of obtaining a good bargain at the time of purchase, which allowed the above-mentioned sellers to earn profits of over $1 million despite selling at prices below the condo’s average.
Source: EdgeProp Market Trends (as at 16 December 2024)
Holding power is important
The seller of the unit involved in the third-highest profit bought it in 2016 for $1,261 psf, which was higher than the average new sale price of $1,234 psf for The Panorama at that time (see Chart 7). The seller sold the unit in 2022 for $1,673 psf, which was lower than the average resale price of $1,759 psf for The Panorama that year.
However, the seller held on to the unit for six years before selling it. From 2016 to 2022, the average price of The Panorama surged by 42.5%, enabling the seller to earn a profit of $980,000. The sellers of the units involved in the top three most profitable transactions held on to their units for at least six years, highlighting the importance of holding power. Furthermore, all three sellers bought their units directly from the developer.
Conclusion
The Panorama did not attract much interest among buyers when it was first launched in January 2014 because the TDSR was introduced six months earlier, which had a significant impact on the housing budgets of many prospective buyers. The subsequent drop in price for The Panorama greatly boosted sales. The lower purchase price also allowed the sellers of the top two most profitable transactions to earn profits of over $1 million, despite selling at lower-than-average prices.
The Panorama benefitted from the completion of the TEL due to its close proximity to Mayflower MRT Station. The condo also gained from the increased attention on the neighbourhood, with numerous upcoming developments in nearby Lentor. The improved connectivity and convenience gave a boost to the average resale price of The Panorama, which grew by 28.5% since 2021. The steady price growth for the condo also allowed the seller of the third-highest profitable transaction to earn a profit, despite buying at a higher-than-average price and selling at a lower-than-average price.
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