Mandarin Gardens has just recorded its most profitable condo resale transaction to date, with a four-bedroom unit fetching $4.88 million, or $1,284 psf, on Feb 11. The previous record was held by a four-bedroom unit that sold for $4.1 million in September 2021.
Mandarin Gardens has achieved its most profitable resale transaction to date on Feb 11 by earning $3.83 million profit from selling a 3,800 sq ft unit at $1,284 psf. According to URA records, the eighth-floor unit last changed hands for $1.05 million ($276 psf) in June 2003. This translates to an annualised capital gain of 7.4% over 21½ years. After the recent transaction, the development has recorded another transaction with profit and surpassing the previous record with 364.8% of their original purchase price in just 17 years.
The second most profitable resale transaction was recorded at Parvis, a freehold development in December 2021. The 3-bedroom unit of 2,260 sq ft was transacted at $4.78 million($2,115 psf) in Feb 10. The seller earned a profit of $2 million (71.9%) from the deal or an annualised gain of 3.6% over 15 years. As Parvis is a 12-storey development comprising of 248 residential units, it has two luxury residential towers of 43 and 34 storeys. Amenities include concierge services, a gym, a lap pool and a sky pool on the 35th floor.
On the same period, the most unprofitable transaction was recorded at Scotts Square with a loss of $745,880 (19.5%) that sold at $3.08 million ($3,252 psf) on Feb 13. It had last changed hands for about $3.83 million ($4,039 psf) in December 2007. This translates to an annualised loss of 1.3% over 17 years. As Scotts Square is a mixed-use freehold development located along Scotts Road in the Orchard shopping belt, the average price of resale units has been trending downwards since its 2007 launch according to EdgeProp’s analytical tools. Based on a 12-month rolling average, prices peaked at $4,054 psf in July 2007 before reaching a floor of $3,330 psf in August 2020.
Mandarin Gardens and Parvis has achieved its most successful resale transactions in 17 and 15 years respectively with 3.6%-7.4% annualised capital gain. On the other hand, the average resale price of units at Scotts Square has been reported to decrease since its launch in 2007.
Investing in a condo in Singapore presents many advantages, with one of the most notable being its potential for capital appreciation. Thanks to its strategic position as a global business center and its robust economic conditions, the demand for real estate in Singapore remains consistently high. This has led to a steady upward trend in property prices over the years, particularly in prime locations where condos have seen significant appreciation in value. For savvy investors who enter the market at the right time and hold onto their properties for the long haul, the potential for substantial capital gains is highly promising.