Ultra-luxury District 10 condos reap sky-high profits
By Timothy Tay
/ EdgeProp Singapore |
A penthouse at Goodwood Residence took the top spot this year after raking in a $16.4 million profit.
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Ultra-luxury condo deals in Singapore’s priciest residential neighbourhoods like Ardmore Park, Nassim Road and Grange Road dominated the list of most profitable resale transactions in 2023.
Based on EdgeProp Singapore’s tabulation of resale caveats this year, three projects in prime District 10 accounted for half of the top 15 profitable transactions in 2023 — Ardmore Park, Nassim Park Residences and Grange Residences.
On the other hand, Sentosa Cove condos continued to perform relatively poorly on the resale market, and about half of the top 15 unprofitable deals of the year came from units in the seaside enclave. Five resale units at Marina Collection made it to the list — the only condo that saw repeated significant losses in 2023.
The chart-topping resale deal this year was the sale of a penthouse unit at Goodwood Residence. The 10,710 sq ft unit, on the 12th floor, was sold for $32 million ($2,988 psf) on Sept 27, more than double the purchase price of $15.6 million ($1,457 psf) in 2014. As a result, the seller raked in a record $16.4 million (105%) profit and an annualised profit of 8% across more than nine years. It is the most profitable deal at Goodwood Residence to date.
A penthouse at Goodwood Residence took the top spot this year after raking in a $16.4 million profit. (Picture: Samuel Isaac Chua/The Edge Singapore)
The sale of such a large unit of more than 10,000 sq ft is a rarity these days. According to URA caveats, there have only been three transactions in the past three years that have involved units exceeding 10,000 sq ft. Last year, an 11,227 sq ft unit at the ultra-luxurious Les Maisons Nassim was sold for $68 million. In 2021, an 11,130 sq ft penthouse at Concourse Skyline was sold for $24 million ($2,156 psf).
There have been seven resale transactions at Goodwood Residence this year. Excluding the sale of the penthouse, prices have ranged from $2.88 million ($2,573 psf) when a 1,119 sq ft unit on the sixth floor was sold in May, to $7.28 million ($2,966 psf) for a 2,454 sq ft unit on the seventh floor that was sold in September.
Goodwood Residence is a freehold development on Bukit Timah Road. The 210-unit project was developed in 2013. The development sits in a prime site that is close to Newton MRT Interchange Station on the North-South and Downtown Lines, and enjoys proximity to the Orchard Road shopping belt, the Novena area and the Singapore Botanic Gardens.
Ardmore Park
Half of the top 15 profitable transactions in 2023 came from three luxury condos in prime District 10, comprising three deals from Ardmore Park, two deals from Nassim Park Residences, and three deals from Grange Residences.
At Ardmore Park, the sale of a 2,885 sq ft unit on the fourth floor was the second most profitable resale transaction this year. It was sold for $13 million ($4,510 psf) in April. The unit had fetched $4.85 million ($1,681 psf) back in 2000. Thus, the seller raked in a profit of $8.16 million (168%) and an annualised profit of 5% over more than 22 years.
The other two units at Ardmore Park that appear on the profitable list are another 2,885 sq ft unit on the 26th floor that changed hands for $12.9 million ($4,472 psf) in May, earning the seller a profit of $7 million (120%); as well as a third 2,885 sq ft unit on the 10th floor that fetched $12.8 million ($4,437 psf) in July, earning the seller a profit of $4 million (46%).
Ultra-luxury condos in prime District 10, like Ardmore Park, dominated the profitable list. (Picture: Samuel Isaac Chua/The Edge Singapore)
Ardmore Park has maintained an unbroken profitable streak for the past two years, and based on research by EdgeProp Singapore, prices at the luxury condo have climbed significantly over the past three years. In January 2020, resale units at Ardmore Park were going for about $3,133 psf; this month, average selling prices have reached about $4,223 psf.
The 330-unit Ardmore Park is a freehold development that was completed in 2001. The condo comprises three 30-storey towers; and typical units are 2,885 sq ft, four-bedroom apartments.
Meanwhile, Nassim Park Residences saw two units rake in profits of $7.26 million and $6.5 million, while Grange Residences recorded three noteworthy transactions that reaped profits ranging from $5.73 million to $5.4 million. (See table for transaction details.)
Marina Collection
On the other hand, close to half of the most unprofitable resale transactions this year came from condos in Sentosa Cove. Marina Collection was the only condo that recorded five significant unprofitable deals, including the most unprofitable deal of the year.
The most unprofitable resale transaction this year was the sale of a 3,272 sq ft unit at Marina Collection for $4.65 million ($1,421 psf) in April. The unit was bought for $9.3 million ($2,841 psf) in March 2008. As a result, the seller suffered a record loss of $4.65 million (50%) and an annualised loss of 5% over 15 years. This is also the most unprofitable resale transaction at the condo to date.
All five resale transactions at Marina Collection this year found their way to the top unprofitable deals list. (Picture: The Edge Singapore)
The other significant losses from transactions at Marina Collection this year range from $2.59 million (35%) on the sale of a 2,788 sq ft unit in July, to $1.6 million (33%) on the sale of a 1,873 sq ft unit in February.
This is the second consecutive year where all the caveated resale transactions at Marina Collection were unprofitable. Last year, the condo recorded four resale transactions that all resulted in losses for their sellers. Prices at Marina Collection have been on a downward spiral for the past 16 years, from a high of $2,746 psf in December 2007 to about $1,707 psf this month. The 124-unit condo was completed in 2011 and comprises three 4-storey apartment blocks with a mix of three- to five-bedroom units.
Sentosa Cove this year saw the sale of a 2,680 sq ft unit at Turquoise for $4.6 million ($1,720 psf) in October. The unit had been bought for $6.95 million ($2,592 psf) in 2007, and the seller suffered a loss of $2.34 million (34%) and an annualised loss of 3% over 16 years.
The Residences at W Singapore Sentosa Cove also recorded the sale of a 1,259 sq ft unit that changed hands for $2.2 million ($1,747 psf) in September. The unit was bought for $3.66 million ($2,907 psf) in 2010. Thus, the seller incurred a loss of $1.46 million (40%) and an annualised loss of 4% over more than 13 years.
Meanwhile, the second largest unprofitable deal this year occurred at Aalto, a freehold condo along Meyer Road in District 15. A duplex penthouse of 5,608 sq ft was sold for $13.2 million ($2,354 psf) in May. It had been purchased from the developer for $16.28 million ($2,902 psf) in 2008. As a result, the seller incurred a record loss of $3.08 million (19%) and an annualised loss of 1% over 15 years. It is the most unprofitable resale transaction at the condo to date.
A duplex penthouse at Aalto incurred a $3.08 million loss when it was sold for $13.2 million ($2,354 psf) in May. (Picture: Samuel Isaac Chua/The Edge Singapore)
It surpasses the previous record low set in 2016, when a 2,443 sq ft unit on the 23rd floor was sold for $4 million ($1,637 psf). This was five years after it had been bought for $5.7 million ($2,333 psf) in 2011. The seller suffered a loss of $1.7 million (29%) and an annualised loss of 6.6%.
It is uncommon to see such a noteworthy loss at Aalto, as prices at the condo have rebounded over the past nine years after hitting a low of $1,732 psf in July 2014. Last month, prices at the condo were about $2,458 psf. The development is next to the upcoming Tanjong Katong MRT Station on the Thomson-East Coast Line, and there will be a new station exit next to the condo.
Check out the latest listings for Goodwood Residence, Condominium properties
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