Top condos by capital appreciation

By Lin Zhiqin

/ The Edge Property |

February 3, 2017 5:35 PM SGT

The Edge Property identified 10 projects with the highest capital appreciation between 2011 and 2016. Most of them were in the central region or near a growth area. About half of them were also located within walking distance of MRT stations or within 1km of popular schools. The study estimated capital appreciation based on the average annual transacted psf price between 2011 and 2016. Projects with fewer than five transactions for the relevant unit size range in each of the reference years were excluded from comparison.

Investors in top-performing projects enjoyed capital gains ranging from 6% to 18% if they had bought in 2011 and divested last year. In comparison, the URA property price index of private residential properties fell 7% between end-2011 and end-2016.

Top-performing projects for 700 to 900 sq ft units

For homes in the 700 to 900 sq ft range, the top 10 projects in terms of price appreciation were Waterview (18%), d’Leedon (18%), The Meyerise (15%), A Treasure Trove (15%), Oleander Towers (14%), Questa @ Dunman (13%), The Miltonia Residences (11%), The Palette (10%), Hedges Park Condominium (9%) and Boathouse Residences (9%). Of these, six are located near the city centre or a growth area (see Table 1).

Three 786 sq ft units at Waterview were bought in 2011 and sold in 2016 at an average profit of $127,667

The top-performing project, Waterview, is a 99-year leasehold condo located in Tampines, a regional centre. The average price of 700 to 900 sq ft units at Waterview rose from $875 psf in 2011 to $1,034 psf in 2016. Based on the matching of URA caveat data, three 786 sq ft units at the Waterview were bought from the developer at $854 to $887 psf in 2011 and sold at $1,003 to $1,066 psf last year. The units fetched profits ranging from $117,000 to $141,000 for their sellers, with the average profit at $127,667. The annualised capital gain averaged 3%. Waterview was completed in 2014 and comprises 696 units.

Investors at Waterview enjoyed an early-mover advantage. Similar- sized units at Q Bay Residences were transacted at an average price of $1,059 psf when the project was launched two years later, in 2013. At The Santorini, units in this size range were transacted at an average price of $1,095 psf when the project was launched in 2014. The higher prices at the subsequent launches set a new benchmark for the area and propelled the prices at Waterview.

At d’Leedon, 700 to 900 sq ft units were sold at an average price of $1,594 psf in 2011

d’Leedon, a 99-year leasehold condo located in prime District 10, takes second place in the list of top-performing projects. Units of 700 to 900 sq ft were sold at an average price of $1,594 psf in 2011. The average transacted price rose to $1,881 psf in 2016. d’Leedon was completed in 2014 and comprises 1,703 units. It is located within walking distance of the Farrer Road MRT station.

The Meyerise is a freehold condominium located on East Coast Parkway, opposite East Coast Park

The Meyerise, in third place, is a freehold condo located on the city fringe. The average price of 700 to 900 sq ft units at the development rose from $1,689 psf in 2011 to $1,946 psf in 2016. The Meyerise was completed in 2014 and comprises 239 units.

A Treasure Trove is a top-performing project in both the 700 to 900 sq ft and 900 to 1,100 sq ft categories

A Treasure Trove, a 99-year leasehold condo in Punggol, takes fourth place on the list of top-performing projects for 700 to 900 sq ft units. The average price rose from $943 psf in 2011 to $1,086 psf in 2016. Based on the matching of URA caveat data, eleven 775 sq ft units were bought from the developer at $915 to $994 psf in 2011 and transacted through subsales and resales at $1,043 to $1,135 psf last year. The units fetched profits ranging from $85,000 to $159,000 for their sellers, with an average profit of $112,091. The annualised capital gain averaged 3%. A Treasure Trove was completed in 2015 and comprises 882 units. It is located within walking distance of the Punggol MRT station. According to URA, the Punggol creative cluster and learning corridor will anchor one end of the North Coast Innovation Corridor. It will be created by extending the existing Punggol town centre towards the waterfront.

Investors at A Treasure Trove also benefited from subsequent launches. At nearby Parc Centros, units of 700 to 900 sq ft units were transacted at an average of $1,022 psf when the project was launched in 2012. Those at Watertown, an adjacent development, were transacted at an average price of $1,341 psf when the project was launched in 2012.

Two 861 sq ft units at Oleander Towers were bought in 2011 and sold in 2016 at profits of $130,000 and $168,000

Oleander Towers, a 99-year leasehold project on the city fringe, takes fifth place on the list for 700 to 900 sq ft units. The average price at the condo rose from $999 psf in 2011 to $1,143 psf in 2016. Based on the matching of URA caveat data, two 861 sq ft units at Oleander Towers were bought at $987 and $1,010 psf in 2011 and sold at $1,161 and $1,182 psf last year. The units fetched $130,000 and $168,000 in profits and the annualised capital gain averaged 3%. Oleander Towers was completed in 1998 and comprises 318 units. It is located within walking distance of the Toa Payoh MRT station.

Top-performing projects for 900 to 1,100 sq ft units

The top 10 projects in terms of price appreciation for homes ranging from 900 to 1,100 sq ft were A Treasure Trove (14%), Double Bay Residences (14%), euHabitat (13%), Signature Park (13%), Waterfront Isle (11%), The Luxurie (10%), The Minton (9%), Heritage View (9%), d’Leedon (8%) and Dover Parkview (6%). Of these, six are located near the city centre or a growth area (see Table 2).

A Treasure Trove, also on the list for 700 to 900 sq ft units, is the top-performing project for 900 to 1,100 sq ft units. The average price of 900 to 1,100 sq ft units at A Treasure Trove rose from $929 psf in 2011 to $1,062 psf in 2016. Based on the matching of URA caveat data, six 915 sq ft units were bought from the developer at $896 to $983 psf in 2011 and transacted through sub-sales and resales at $1,038 to $1,115 psf last year. The units fetched profits ranging from $116,000 to $163,000 for their sellers, with an average profit of $144,500.

Separately, nine 1,044 sq ft units at A Treasure Trove were bought from the developer at $896 to $984 psf in 2011 and transacted through subsales and resales at $991 to $1,101 psf last year. These units fetched profits ranging from $73,000 to $143,000 for their sellers, with an average profit of $110,000. The annualised capital gain averaged 3% for 900 to 1,100 sq ft units at A Treasure Trove.

Parc Centros and Watertown, located in the vicinity of A Treasure Trove, were launched in 2012. Units of 900 to 1,100 sq ft at Parc Centros were transacted at an average price of $902 psf in its launch year. At Watertown, units in this size range were transacted at an average price of $1,153 psf in the same year. The higher prices at the subsequent launches set a new benchmark for the area and propelled the prices at A Treasure Trove.

The average price of 900 to 1,100 sq ft units at Double Bay Residences rose from $937 psf in 2011 to $1,064 psf in 2016

Double Bay Residences, a 99- year leasehold condo, is next on the list. It is located in Simei, close to the Tampines Regional Centre. The average price for 900 to 1,100 sq ft units at the development rose from $937 psf in 2011 to $1,064 psf in 2016. Double Bay Residences was completed in 2012 and comprises 646 units. It is located within walking distance of the Simei MRT station.

Three 1,012 sq ft units at euHabitat were bought in 2011 and fetched profits averaging $191,467 in sub-sales last year

euHabitat, a 99-year leasehold condo located in Eunos, is third on the list of top-performing projects for 900 to 1,100 sq ft units. The average price at the development rose from $983 psf in 2011 to $1,107 psf in 2016. Based on the matching of URA caveat data, three 1,012 sq ft units were bought from the developer at $891 to $912 psf in 2011 and transacted through sub-sales at $1,018 to $1,137 psf last year. The units fetched profits ranging from $128,215 to $238,718 for their sellers, with an average profit of $191,467. The annualised capital gain averaged 4%. euHabitat was completed in 2015 and comprises 697 units.

A 1,023 sq ft unit at Signature Park was bought in 2011 and sold in 2016 for a $90,000 profit

Signature Park, a freehold condo in Upper Bukit Timah, takes fourth place. The average price of 900 to 1,100 sq ft units at the project rose from $937 psf in 2011 to $1,054 psf in 2016. Based on the matching of URA caveat data, a 1,023 sq ft unit was bought at $944 psf in 2011 and sold at $1,032 psf last year. The profit worked out to $90,000, or 9%. Signature Park was completed in 1998 and comprises 928 units.

The average price of 900 to 1,100 sq ft units at Waterfront Isle rose from $1,030 psf in 2011 to $1,142 psf in 2016

Waterfront Isle, a 99-year leasehold condo located in Bedok, is fifth on the list of top-performing projects for 900 to 1,100 sq ft units. The average price rose from $1,030 psf in 2011 to $1,142 psf in 2016. Waterfront Isle was completed in 2015 and comprises 561 units.

This article appeared in The Edge Property Pullout, Issue 765 (Feb 6, 2017) of The Edge Singapore

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