Skysuites@Anson vs. Altez: How unit layout affects prices over the long run
By Elizabeth Choong
/ EdgeProp Singapore |
Skysuites@Anson and Altez are 99-year leasehold condos in District 2 whose prices are trending above their counterparts in the same district. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – Skysuites@Anson and Altez are located adjacent to each other along Enggor Street (see Map 1). Both condos are also located within District 2 and the Downtown Core Planning Area.
Additionally, they are a short walk from Tanjong Pagar MRT Station (East-West Line), which is just one stop from the dual-line Raffles Place MRT Station (East-West and North-South Lines) and the triple-line Outram Park MRT Station (East-West, North-East, and Thomson-East Coast Lines). This gives residents easy access to four MRT lines. Residents will soon have access to the Circle Line when the nearby Prince Edward Road MRT Station is completed in 2026. The Ayer Rajah Expressway is also a short drive away.
Source: EdgeProp LandLens (as at 30 October 2024)
Other amenities within walking distance include Tanjong Pagar Plaza and 100AM. However, Cantonment Primary School is the only school within a 1 km radius.
Similar locations and ages but different price points
Skysuites@Anson and Altez share many similarities. In addition to their location and proximity to numerous amenities, both condos are 99-year leasehold developments that obtained their temporary occupation permits (TOP) in 2014 (see Table 1).
One difference between the two condos is their size. Skysuites@Anson is a slightly larger development with 360 units, while Altez has 280 units.
Another difference between the developments is the unit mix. Skysuites@Anson features units with one to three bedrooms that range from 366 sq ft to 1,141 sq ft. Approximately 88% of units in Skysuites@Anson have one or two bedrooms. In contrast, Altez has only one four-bedroom unit measuring 4,424 sq ft; the remaining units have either one or two bedrooms that measure 527 sq ft to 1,184 sq ft.
Units in Altez also tend to be larger than those in Skysuites@Anson. For example, one-bedroom units in Altez measure 527 sq ft to 861 sq ft, while those in Skysuites@Anson measure 366 sq ft to 506 sq ft.
A significant difference between the two leasehold condos is their pricing. The average resale price for Skysuites@Anson ($2,246 psf) has consistently trended above that for Altez ($1,924 psf) (see Chart 1). However, since 2020, the average resale price for Skysuites@Anson has seen a larger decline (5.1%) compared to Altez (4.8%).
Source: EdgeProp Market Trends (as at 30 October 2024)
This holds true even when comparing the average resale prices for units of the same size in both condos. The average resale price for units in Skysuites@Anson ($2,209 psf) that are between 500 sq ft and 1,000 sq ft is higher than that for Altez ($1,935 psf) (see Chart 2). Furthermore, the average price for these units in Skysuites@Anson rose by 5.6% y-o-y this year, while that for Altez fell by 3.1% y-o-y.
Source: EdgeProp Market Trends (as at 6 November 2024)
Despite its higher price, Skysuites@Anson appears to be more popular with buyers compared to Altez. Since 2021, Skysuites@Anson has seen more resale transactions than Altez (see Chart 3). At the time of writing, 13 resale transactions have taken place for Skysuites@Anson this year, compared to 10 resale transactions for Altez. The difference was more pronounced last year, with 21 resale transactions for Skysuites@Anson and nine resale transactions for Altez.
Source: EdgeProp Market Trends (as at 30 October 2024)
Most profitable units from Skysuites@Anson have a similar layout
Since its launch, Skysuites@Anson has achieved 72 profitable transactions compared to 43 for Altez. Profits for Skysuites@Anson range from $5,900 to $200,000, while those for Altez range from $5,000 to $318,690.
The difference in profitable transactions is more pronounced this year, with Skysuites@Anson achieving 10 profitable transactions compared to three for Altez. Additionally, the profits for Skysuites@Anson ($12,800 to $165,300) are higher than those for Altez ($5,000 to $104,880).
Notably, one of the top three most profitable transactions for Skysuites@Anson took place in February (see Table 2). The seller sold the unit for $1.595 million ($2,390 psf) after purchasing it in August 2017 for $1.43 million ($2,142 psf), resulting in a profit of $165,300. The 667-sq ft unit is on the 47th storey.
Source: EdgeProp Buddy (as at 30 October 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.
One reason for its profitability could be the discounts given by the developer when they relaunched Skysuites@Anson in mid-2017. This allowed the seller to purchase the unit at $2,142 psf in August 2017, while the average price for the development was $2,287 psf that year. Furthermore, the seller sold it for $2,390 psf in February, above this year’s average price of $2,246 psf for the development (see Chart 4).
The unit on Level 47 features two bedrooms and two bathrooms, including an ensuite master bedroom (see Floor Plan 1). It has a compact living/dining area and kitchen. There are also bay windows in both bedrooms and a planter box in the living/dining area.
Source: EdgeProp Research
The unit that yielded the highest profit of $200,000 for Skysuites@Anson is also a two-bedroom unit, similar to the above-mentioned unit on Level 47. However, the most profitable unit is on a lower floor (Level 24) and is larger, at 700 sq ft. The seller bought the unit on Level 24 in April 2019 for $1.2 million ($1,715 psf) and sold it in September 2022 for $1.4 million ($2,001 psf), resulting in a record-high profit of $200,000 (see Table 2).
Interestingly, the same unit on Level 24 generated a loss for the seller in an earlier transaction. The first owner purchased the unit from the developer in April 2012 for nearly $1.398 million ($1,998 psf) and sold it to the second owner in April 2019 for $1.2 million ($1,715 psf), resulting in a loss of $197,700 (see Table 3).
Source: EdgeProp Buddy (as at 4 November 20204)
Despite the difference in size, both units share a similar layout, except the unit on Level 24 has a larger living/dining area (see Floor Plan 2).
Source: EdgeProp Research
Top two profitable units from Altez have an open-concept layout
In contrast, the unit that generated the highest profit for Altez is a one-bedroom unit measuring 527 sq ft. The unit on the 16th storey was sold in February 2018 for $1.21 million ($2,294 psf), resulting in a profit of $318,690. The seller had purchased the unit in March 2010 from the developer for $891,310 ($1,690 psf) (see Table 4).
Source: EdgeProp Buddy (as at 30 October 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.
Notably, the unit that generated the second-highest profit of $288,510 is directly below the most profitable unit, and both units share the same size and layout. The seller purchased the same on Level 15 from the developer in March 2010 for $883,490 ($1,675 psf) and sold it in March 2013 for $1.172 million ($2,222 psf) (see Table 4).
Both units have a simple layout that essentially divides the space into two halves. One half comprises the kitchen and living/dining area, while the other half comprises the bedroom and bathroom (see Floor Plan 3). The limited number of internal walls helps make the one-bedroom unit feel more spacious. The unit also has bay windows in the master bedroom and living/dining area.
Source: EdgeProp Research
Open kitchen could have contribute to losses for Skysuites@Anson
Skysuites@Anson has recorded 32 unprofitable transactions compared to 27 for Altez. Despite having more unprofitable transactions, the losses for Skysuites@Anson are smaller. Losses for Skysuites@Anson range from $450 to $372,140, while losses for Altez range from $10,960 to $1.213 million.
The unit in Skysuites@Anson that generated the highest loss of $372,140 is a three-bedroom unit on Level 71, which was sold in November 2021 for $2 million ($1,998 psf) (see Table 5). The seller purchased the 1,001-sq ft unit in May 2018 for $2.372 million ($2,370 psf).
Source: EdgeProp Buddy (as at 30 October 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.
The reason for the record-high loss is that the seller sold the unit at $1,998 psf in 2021, when the average price for Skysuites@Anson was higher at $2,198 psf (see Chart 4). This is despite the seller having purchased the unit for $2,370 psf in 2018, when the average price for the development was higher at $2,386 psf.
Another reason for the loss could be the unit layout. Typically, three-bedroom units are occupied by families. Many families in Singapore cook daily and most would prefer an enclosed kitchen to prevent food smells from permeating the entire unit. However, the 1,001-sq ft unit features an open kitchen (see Floor Plan 4). Owners could have to undertake renovations to close off the kitchen, but this might result in less space for the dining area.
Source: EdgeProp Research
There have been three unprofitable transactions for Skysuites@Anson this year. Notably, all three transactions yielded losses of less than $100,000 each, significantly below the highest loss of over $300,000. Furthermore, the units involved in these three unprofitable transactions are two-bedroom units that measure 700 sq ft and were purchased from the developer in either 2011 or 2012 (see Table 6).
Source: EdgeProp Buddy (as at 30 October 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.
Furthermore, the three units have the same layout, which comprises an en-suite master bedroom, a second bedroom, a common bathroom, and a compact living/dining area (see Floor Plan 5). Similar to the unprofitable three-bedroom unit, the two-bedroom units also feature an open kitchen and its location adjacent to the main door might make enclosing it challenging.
Source: EdgeProp Research
Duplex units in Altez not popular with buyers
The highest loss for Skysuites@Anson is well below $500,000, while the top two unprofitable transactions for Altez yielded losses exceeding $1 million. The highest loss for Altez is for a two-bedroom unit on the 48th floor. The seller purchased the 1,173-sq ft unit from the developer in April 2011 for $3.213 million ($2,738 psf) and sold it in January 2021 for $2 million ($1,705 psf) (see Table 7).
Source: EdgeProp Buddy (as at 29 October 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.
The loss can be attributed to the seller buying high and selling low. The seller purchased the unit at $2,738 psf in 2011 when the average price for the development was $2,559 psf. In 2021, the average price for Altez was $2,108 psf, but the seller sold it for $1,705 psf (see Chart 5).
Source: EdgeProp Market Trends (as at 30 October 2024)
The most unprofitable unit is a duplex with a kitchen, a living/dining area, and a powder room on the lower level. There are two bedrooms and two bathrooms on the upper level. Additionally, there is a balcony that is accessible only via the master bedroom. It is notable that the master bedroom does not have an attached bathroom. Instead, the master bathroom, located between the master bedroom and the second bedroom, opens into a common corridor which allows occupants of both bedrooms to share the master bathroom. The second bathroom is across the hallway from the second bedroom. (see Floor Plan 6).
Source: EdgeProp Research
Altez has six unprofitable transactions this year. Notably, five out of the six transactions involve one-bedroom units. The most recent unprofitable transaction for Altez took place earlier this month. The seller purchased the one-bedroom unit in July 2012 for $2.083 million ($2,419 psf) and sold the 861-sq ft unit for $1.53 million ($1,777 psf), resulting in a loss of $552,796 (see Table 8).
Source: EdgeProp Buddy (as at 29 October 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.
The most recent unprofitable unit for Altez is also a duplex. The lower level features a kitchen and a living/dining area, while the upper level has a bedroom and a bathroom (see Floor Plan 7). It is notable that the duplex unit does not have a bathroom on the lower level.
Source: EdgeProp Research
It is interesting to note that Altez has numerous duplex units, while Skysuites@Anson does not have such units. This could have affected the price and profitability of Altez, as the stairs for such units may have deterred some potential buyers. Buyers with young children might view the stairs as a potential danger for their children, while elderly buyers may find the stairs inconvenient if they have mobility issues.
Furthermore, some of the smaller duplex units in Altez do not have a bathroom or powder room on the first storey. This could create an inconvenience for occupants and their guests, who will have to climb a flight of stairs each time they need to use the sole bathroom located on the upper level.
Priced higher than counterparts in District 2
Despite the unpopularity of some of their unit layouts, the average resale prices of Skysuites@Anson ($2,246 psf) and Altez ($1,924 psf) are trending above those of their leasehold counterparts in District 2 ($1,852 psf) (see Chart 6), indicating that both condos still appeal to buyers.
Source: EdgeProp Market Trends (as at 4 November 2024)
Despite having the highest current average resale price, Skysuites@Anson has experienced a price decline of 5.1% since 2020. In contrast, Altez has experienced a smaller price decline of 4.8% over the same time frame. The silver lining is that both condos have performed better than their counterparts in the same district, whose average price has dropped by 13.4%.
However, the price decline seems to be easing. This year, the average resale prices for Skysuites@Anson and Altez inched down by 1.7% y-o-y and 2.5% y-o-y, respectively. Meanwhile, the average resale price for 99-year leasehold condos in District 2 declined by 2.9% y-o-y.
Conclusion
The importance of location is undeniable in real estate, yet buyers must also consider other factors. Skysuites@Anson and Altez are located adjacent to each other and share many similarities, such as age and tenure. However, Skysuites@Anson has had more profitable transactions than Altez. Additionally, sellers of unprofitable units in Skysuites@Anson have experienced smaller losses compared to those in Altez.
One reason for the difference in profitability may be attributed to unit layouts. The top three most unprofitable transactions for Altez all involve duplex units, indicating that such layouts may be less popular with buyers. This duplex layout could have affected the average price at Altez, especially since the majority of its units are duplexes, whereas Skysuites@Anson has none.
It is also important for buyers to consider the transacted prices of neighbouring units. In our analysis, we observed that several unit owners incurred losses because they purchased their units at prices above the average for their development or sold them below the average price.
The average prices for Skysuites@Anson and Altez are trending above other properties in the same district. However, prospective buyers should note that the average resale prices for both condos have been on a downward trend, although the rate of decline seems to be easing. The price decrease for Skysuites@Anson (1.7% y-o-y) this year is smaller than that of the district (2.9% y-o-y), while the decrease for Altez (2.5% y-o-y) aligns with the district's price decline.
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