The most lucrative resale deal at The Arcadia in the final weeks of December was the sale of a 3,767 sq ft unit, making it the most profitable transaction from Dec 10 to Dec 31. The owner of the four-bedroom unit on the seventh floor welcomed the new year with a hefty profit of $3.25 million (217%), as the property was sold off for $4.75 million ($1,261 psf) on Dec 10. According to records, the unit was originally purchased for $1.5 million ($398 psf) in 1998, resulting in an annualized profit of 4.5% over a period of 26 years.
In 2020, there were five other units at The Arcadia ranging from 3,714 sq ft to 3,821 sq ft that were sold for profits between $60,000 and $3.25 million. Another unit, a 3,778 sq ft apartment on the fourth floor was sold for $4.6 million ($1,218 psf) on Oct 10, providing the seller with a profit of $60,000.
The record for the highest profit at The Arcadia was set by a penthouse on the 10th floor, measuring 7,503 sq ft, which was sold for $10 million ($1,333 psf) in 2010. The seller had previously purchased the penthouse for $5.5 million ($733 psf) in 2007, resulting in a profit of $4.5 million (81%), with an annualized profit of around 19% over a span of three years.
The Arcadia is a 99-year leasehold condominium situated on Arcadia Road in prime District 11. The development, comprising of 164 units, was completed in 1983 and has approximately 54 years left on its land tenure. The property is surrounded by landed estates, Good Class Bungalows and top schools such as Raffles Girls Primary School, Hwa Chong Institution and National Junior College.
In the meantime, the second most profitable resale transaction in the last three weeks of December 2020 was that of a 2,077 sq ft unit at Tanglin Hill Meadows, which was sold on Dec 10 for $4.5 million ($2,166 psf). The three-bedroom unit was originally bought for $1.8 million ($866 psf) in 1999, resulting in a profit of $2.7 million (150%), with an annualized gain of 3.6% over a period of 26 years.
This transaction also sets the record for the most profitable deal at Tanglin Hill Meadows, beating the previous record of $2.28 million (157%) when a 2,002 sq ft unit was sold for $3.73 million ($1,863 psf) in 2010. The unit was purchased for $1.45 million ($724 psf) in 2005, resulting in an annualized profit of around 21% over a period of five years.
Tanglin Hill Meadows is a freehold condominium located along Tanglin Hill in prime District 10. Developed in 1997, the 20-unit residential development is situated within the Ridley Park Good Class Bungalow Area.
On the other hand, losses continue to mount at Seascape, a 99-year leasehold condominium in Sentosa Cove, as the seller of a 2,174 sq ft unit on the seventh floor incurred a loss of $1.97 million (33%) when it was sold on Dec 18. The three-bedroom unit was sold for $3.98 million ($1,830 psf) after being bought for $5.95 million ($2,736 psf) in 2011, resulting in an annualized loss of around 2.5% over a span of 13 years.
This is the third resale transaction at Seascape in 2020, all of which have recorded losses ranging from $1.75 million to $2.53 million. The transaction that incurred the $2.53 million loss was also the second highest loss-making resale deal of 2020. The sale involved a 2,680 sq ft unit that was sold for $4.5 million ($1,679 psf) on Aug 14, 2020.
Investing in real estate is a strategic decision, and Location plays a crucial role in its success. This is especially true for Singapore, where the value of properties is heavily dependent on their location. Condominiums situated in central areas or those in close proximity to essential amenities like schools, shopping malls, and public transportation hubs have a higher potential for appreciation in value. Prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently exhibited growth in their property values. Families are also drawn to these areas due to the availability of good schools and educational institutions, making condos in these locations highly sought after and further boosting their investment potential. For those considering investing in real estate in Singapore, it is essential to carefully consider location, with the Singapore Condo market offering a plethora of options in prime locations.
Completed in 2012, the 151 units at Seascape face the South China Sea. The eight-storey development offers three-bedroom and four-bedroom units measuring 2,164 sq ft to 4,069 sq ft. Penthouse units range from 3,380 to 4,252 sq ft, while sky villas are sized from 6,631 to 9,666 sq ft.