Recent deals in the always changing Singapore real estate market have clarified the dynamics of condo resales in different districts. Notable sales occurred during the week of August 6 through August 13; The Trillium in District 9 takes front stage. Translating to $2,615 per square foot, a three-bedroom plus-study flat at this esteemed complex changed hands for an amazing $4.7 million. Having owned the property for almost two decades, the seller made a sizable profit of $1.71 million—a 57% capital gain that emphasises the long-term appreciation possibilities on prime sites.
Completed in 2010, the freehold condominium The Trillium has regularly shown outstanding returns for its owners. Situated on the Thomson-East Coast Line opposite Great World and next to the Great World MRT Station, its prime location still draws buyers. The varied unit mix of the building, which ranges from opulent penthouses to cosy two-bedroom-plus-study flats, suits a broad spectrum of investors and homeowners.
While The Trillium highlighted the top levels of the market, Botannia in District 5 proved that notable progress is achievable even in non-central areas. At Botannia, a four-bedroom apartment sold for $2.68 million, netting the seller an amazing $1.59 million profit — a 146% return on investment over 17 years. This deal exceeded the previous best gain by about $120,000, setting a new record for the development.
For many, Botannia, a 493-unit condominium with a 956-year leasehold term, has shown to be a wise purchase. Its position off West Coast Road and range of unit sizes have kept it appealing on the market. The continuous performance of the development points to the possibility of significant long-term value appreciation from well-located non-central assets.
Still, the market presents difficulties as seen by a recent purchase in Mon Jervois in District 10. Originally bought from the developer roughly 11 years ago, a three-bedroom flat sold for $2.8 million lost $420,000 for the seller. The first at Mon Jervois in almost a year, this deal emphasises the possible dangers in the premium market and the need of timing in real estate purchases.
Completing in 2016, Mon Jervois is a rather younger development with a mix of unit kinds in an excellent location. The recent unsuccessful sale reminds us that downward price pressures can affect even properties in desirable locations, notwithstanding their elegant presentation.
These latest deals create a complex picture of Singapore’s condo scene. While some developments still show amazing returns, others struggle to keep their worth. The long-term success of a property is much influenced by location, tenure, and market timing as well as others. Buyers and sellers both have to negotiate this complexity with great thought and detailed market analysis as the real estate scene changes.
