The recent sale of a 3,767 square foot unit at The Arcadia condominium marked the most profitable resale transaction between December 10 and December 31. The lucky owner of the four-bedroom unit, located on the seventh floor, rung in the new year with an impressive profit of $3.25 million (217%) when the property was sold for $4.75 million ($1,261 psf) on December 10. Public records indicate that this unit was originally purchased back in 1998 for $1.5 million ($398 psf), making this a highly lucrative resale that generated an annualized profit of 4.5% over a span of 26 years.
In the past year, The Arcadia saw a total of five units, with sizes ranging from 3,714 square feet to 3,821 square feet, change hands at profits ranging from $60,000 to $3.25 million. One of the most notable transactions was the sale of a 3,778 square foot unit on the fourth floor, which was sold for $4.6 million ($1,218 psf) on October 10, 2024, resulting in a profit of $60,000 for the seller.
The Arcadia’s record profit was previously held by a 7,503 square foot penthouse on the 10th floor, which was sold for $10 million ($1,333 psf) in 2010. This penthouse was acquired for $5.5 million ($733 psf) in 2007, making for a very impressive profit of $4.5 million (81%), or an annualized profit of about 19% over a short period of three years.
The Arcadia is a highly sought-after 99-year leasehold condominium located along Arcadia Road in prime District 11. Completed in 1983, this 164-unit development still has a remaining leasehold of approximately 54 years. The property’s excellent location is surrounded by landed estates and Good Class Bungalows, as well as top schools such as Raffles Girls Primary School, Hwa Chong Institution, and National Junior College.
Meanwhile, the second most profitable resale between December 10 and December 31 was that of a 2,077 square foot unit at Tanglin Hill Meadows, which was sold on December 10 for $4.5 million ($2,166 psf). Public records show that this three-bedroom unit was originally purchased for $1.8 million ($866 psf) back in 1999, resulting in a whopping profit of $2.7 million (150%) for the seller. This translates to an annualized gain of 3.6% over a period of 26 years, making this the most profitable transaction to date at Tanglin Hill Meadows, surpassing the previous record of $2.28 million (157%) when a 2,002 square foot unit was sold for $3.73 million ($1,863 psf) in 2010. That particular unit was acquired for $1.45 million ($724 psf) in 2005, resulting in an annualized profit of 21% over a shorter span of five years.
When it comes to investing in real estate, location plays a crucial role, and this is especially true in the context of Singapore. Condominiums located in central areas or in close proximity to important amenities like schools, shopping centers, and public transportation hubs have a higher chance of increasing in value. Prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently shown growth in property values. Moreover, condos in these areas are highly sought after by families due to their close proximity to reputable schools and educational institutions, making them even more attractive investment opportunities. In addition to these established locations, one must also keep an eye out for new condo launches such as New Condo Launches, which can also offer promising investment potential.
Tanglin Hill Meadows is a freehold condominium situated along Tanglin Hill in prime District 10. Completed in 1997, this exclusive 20-unit development is nestled within the prestigious 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 square foot unit on the seventh floor recently incurred a loss of $1.97 million (33%) when the unit was sold on December 18. This three-bedroom unit was sold for $3.98 million ($1,830 psf) after it was originally purchased for $5.95 million ($2,736 psf) back in 2011. As a result, the seller had to bear an annualized loss of 2.5% over a period of 13 years.
The sale of this unit marks the third resale transaction at Seascape in the past year, with all three transactions recording losses ranging from $1.75 million to $2.53 million. The second largest loss-incurring resale transaction in 2024 was also recorded at Seascape, where a 2,680 square foot unit was sold for $4.5 million ($1,679 psf) on August 14, 2024, resulting in a whopping loss of $2.53 million.
Completed in 2012, Seascape is a prestigious development that comprises of 151 units which offer unobstructed views of the South China Sea. Ranging from three-bedders and four-bedders from 2,164 square feet to 4,069 square feet, penthouses from 3,380 to 4,252 square feet, and sky villas from 6,631 to 9,666 square feet.