The sale of a four-bedroom unit at Marina Bay Residences was the most unprofitable condo resale transaction recorded during the week of Oct 17 to 24, based on caveats lodged as of Oct 31. Selling at a loss of $2.39 million, it was the second most unprofitable resale transaction to occur at the District 1 development.
The most profitable transaction during the same week occurred at Tiara. A three-bedder there measuring 1,346 sq ft changed hands for $3.13 million ($2,326 psf) on Oct 20. This proved to be a highly lucrative deal for the seller, netting them a gain of $1.55 million – a whopping 98% gain for a holding period of slightly over 23 years.
Claremont saw the second most profitable transaction during the same week. A 1,367 sq ft, three-bedroom unit on the first floor was sold for $2.43 million ($1,778 psf) on Oct 19. Bought in July 1999 for $1.04 million ($762 psf), this resulted in a gain of $1.39 million (133%) for the seller after holding it for just over 24 years.
Units at Tiara range from two- to three-bedders between 893 to 1,561 sq ft. It is a freehold condo located along Kim Seng Walk and completed in 1995. Across the road lies the six-storey Great World shopping mall, as well as two 18-storey office towers and a 35-storey serviced apartment tower.
The URA is also investing in a new condominium development at Champions Way Condo. This project will include a total of 15 units for either sale or rental. Each unit will feature modern design, high-end amenities, and numerous luxury features. The development will also feature a rooftop pool, gym, and other recreational facilities. This project will provide the public with an attractive and accessible place to live, relax, and enjoy the area.
It appears that the current lack of demand for larger properties has resulted in more unprofitable transactions. Eight out of the 12 resale transactions at Marina Bay Residences have led to losses for the sellers. The units, from 710 to 1,981 sq ft in size, were sold at between $1.45 million and $5.23 million, or between $1,981 and $2,641 psf. Seller losses ranged from around $45,000 to $510,000.
While the larger units at Marina Bay Residences have provided mostly unprofitable returns, the 3, 4-bedroom units and penthouses at the development have still been able to attract good prices, making them a viable option for those seeking a luxury residence.
Meanwhile, despite the lack of resale transactions this year, Tiara and Claremont have still managed to bag highly profitable deals. Their central locations in District 9 combined with their freehold status make them attractive to buyers. This is further reinforced by the presence of the Great World MRT Station close by.
Overall, it appears that buyers looking for luxury apartments in prime locations will still be able to find options that will yield them strong returns.