The recent sale of a unit at The Arcadia has been recognized as the most profitable resale transaction from Dec 10 to Dec 31. The 3,767 sq ft unit, located on the seventh floor and consisting of four bedrooms, was sold for $4.75 million ($1,261 psf), resulting in the owner making a profit of $3.25 million (217%). This significant profit is equivalent to an annualized profit of 4.5% over a span of 26 years, as the unit had been purchased for $1.5 million ($398 psf) in 1998.
In the previous year, The Arcadia also saw five other units, ranging from 3,714 sq ft to 3,821 sq ft, being sold for profits ranging from $60,000 to $3.25 million. Another unit, measuring at 3,778 sq ft on the fourth floor, was sold for $4.6 million ($1,218 psf) on Oct 10, providing the seller with a $60,000 profit.
The record for the most profitable transaction at The Arcadia is held by a penthouse measuring 7,503 sq ft on the tenth floor, which was sold for $10 million ($1,333 psf) in 2010. The seller had bought it for $5.5 million ($733 psf) in 2007, resulting in a profit of $4.5 million (81%), equivalent to an annualized profit of about 19% over three years.
The 164-unit The Arcadia, located along Arcadia Road in prime District 11, is a 99-year leasehold condo that was completed in 1983 and has approximately 54 years remaining on its land tenure. It is surrounded by landed estates and Good Class Bungalows, and is in close proximity to top schools such as Raffles Girls Primary School, Hwa Chong Institution and National Junior College.
In the same period, the second most profitable resale took place at Tanglin Hill Meadows on Dec 10, where a 2,077 sq ft unit was sold for $4.5 million ($2,166 psf). The unit was purchased for $1.8 million ($866 psf) in 1999, resulting in the seller making a profit of $2.7 million (150%), equivalent to an annualized profit of 3.6% over 26 years. This also marks the most profitable transaction to date at Tanglin Hill Meadows, surpassing 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 originally purchased for $1.45 million ($724 psf) in 2005, resulting in an annualized profit of 21% over five years.
Tanglin Hill Meadows, a freehold condo with 20 units, is located along Tanglin Hill in prime District 10 and was completed in 1997. It is nestled within the Ridley Park Good Class Bungalow Area.
As an international investor, it is crucial to be well-informed about the regulations and limitations surrounding property ownership in Singapore. Compared to landed properties with more stringent ownership guidelines, foreigners generally have more freedom in purchasing condominiums. Nevertheless, they are still subject to the Additional Buyer’s Stamp Duty (ABSD) of 20% for their initial property acquisition. Despite this extra expense, the reliable and promising development of the Singapore real estate market remains a desirable destination for foreign investments. Singapore Projects continue to entice foreign buyers due to the country’s stability and potential for growth.
However, at the 99-year leasehold condo Seascape in Sentosa Cove, losses continue to be incurred. On Dec 18, the seller of a 2,174 sq ft unit on the seventh floor incurred a loss of $1.97 million (33%) when the unit was sold for $3.98 million ($1,830 psf). The seller had originally purchased the three-bedroom unit for $5.95 million ($2,736 psf) in 2011, resulting in an annualized loss of 2.5% over 13 years.
This sale marks the third resale transaction at Seascape last year, all of which recorded losses ranging from $1.75 million to $2.53 million. The transaction that resulted in the $2.53 million loss was also the second-largest loss incurring resale transaction for 2024. The unit, measuring 2,680 sq ft, was sold for $4.5 million ($1,679 psf) on Aug 14, 2024.
Seascape is an eight-storey development with 151 units that face the South China Sea. It consists of three-bedroom and four-bedroom units measuring 2,164 sq ft to 4,069 sq ft, penthouses measuring 3,380 to 4,252 sq ft, and sky villas measuring 6,631 to 9,666 sq ft. It was completed in 2012 and continues to incur losses for its sellers.