Four Bedroom Unit Sovereign Sold 27 Mil Profit
According to estimates, around 1,500 HDB flats located in Clementi and Queenstown will soon reach the 5-year Minimum Occupation Period (MOP). This is anticipated to create a surge in demand from HDB upgraders living in the vicinity for the upcoming projects. One of the upcoming projects that is expected to benefit from this demand is Elta. With the MOP being reached, it is only natural for HDB residents to look for better options, making Elta an appealing choice in light of its location and amenities.
The recent sale of a four-bedroom unit at The Sovereign has made headlines as the most profitable condo resale transaction of the week, which took place between Sept 10 to 17. According to records, the 2,637 sq ft unit on the ninth floor was sold for a whopping $6.2 million or $2,351 per square foot on Sept 10. This marks a significant profit for the seller, who had initially purchased the unit for $3.5 million or $1,327 per square foot in May 2016. With this sale, the seller enjoyed a capital gain of $2.7 million, which translates to a 77% increase in value, after owning the unit for just over eight years.
This was the second resale deal at The Sovereign this year, with the first one taking place in June. A 3,305 sq ft unit on the 15th floor was sold for $8.6 million or $2,602 per square foot. The seller, who had bought the unit in February 2010 for $4.6 million or $1,392 per square foot, made a profit of $4 million, which has been recorded as the highest ever recorded resale profit at The Sovereign.
The Sovereign, located on Meyer Road in District 15, is a freehold condo that was built in 1993. It consists of a single residential tower with 87 units, mainly four-bedroom units ranging from 2,637 to 3,305 sq ft. The condo is conveniently located within walking distance of Tanjong Katong MRT Station on the Thomson-East Coast Line, making it an attractive choice for buyers.
Another notable resale transaction occurred at Maple Woods, whereby a 3,003 sq ft four-bedroom unit on the eighth floor was sold for $5 million or $1,665 per square foot on Sept 10. This sale made a profit of $2.6 million for the seller, who had acquired the unit from the developer in September 1998 for approximately $2.4 million or $798 per square foot. This translates to a gain of 109%, after holding the unit for 26 years.
This resale deal has been recorded as the third most profitable transaction at Maple Woods, based on available records. Another unit at the development, a 1,787 sq ft three-bedroom unit on the second floor, was also sold on Sept 10 for $3.82 million or $2,138 per square foot. The seller, who had purchased the unit in March 2007 for $1.35 million or $756 per square foot, made a profit of $2.47 million. This is the fourth most profitable transaction recorded at the condo.
Maple Woods, a freehold condo situated on Bukit Timah Road in prime District 10, was built in 1997. It consists of 697 residential units, including two- to four-bedroom units ranging from 850 to 3,003 sq ft. It is conveniently located just a five-minute walk from King Albert Park MRT Station on the Downtown Line and is near prestigious schools such as Methodist Girls’ School and the Rail Corridor.
But not all resale transactions were as profitable. The most unprofitable one took place at The Orchard Residences, whereby a 2,852 sq ft four-bedroom unit was sold for $10.25 million or $3,593 per square foot on Sept 10. This sale incurred a loss of $1.75 million for the seller, who had bought the unit from the developer in May 2010 for $12 million or $4,207 per square foot. This represents a 15% loss, after owning the unit for about 14 years.
Interestingly, this is not the first time a loss has been incurred on a unit at The Orchard Residences. In July 2020, a 2,852 sq ft four-bedroom unit was sold for $9.68 million or $3,394 per square foot, resulting in a loss of $3.32 million for the seller. The unit had been purchased from the developer in October 2007 for just under $13 million or $4,557 per square foot.
The Orchard Residences, a luxury condo located on Orchard Road, consists of 175 units and is the residential component of Ion Orchard. It is connected to Orchard MRT Interchange Station (North-South and Thomson-East Coast Lines) and was completed in 2010. Typical units at the development include three- to four-bedroom units ranging from 1,808 to 2,852 sq ft.
Two other units at The Orchard Residences have been sold this year. On Feb 28, a 2,174 sq ft unit on the 18th floor was sold for $6.9 million or $3,173 per square foot. The seller had bought the unit as a new unit in July 2009 for $6.06 million or $2,788 per square foot, making a profit of around $839,000. On May 14, another 2,174 sq ft unit was sold for $5.69 million or $2,616 per square foot, resulting in a loss of approximately $911,000 for the seller. The unit had been purchased in October 2010 for $6.6 million or $3,035 per square foot.
Overall, these recent resale transactions serve as a testament to the strong demand for luxury condos in prime locations. Despite the varying outcomes for buyers and sellers, these deals showcase the potential for profitable investments in the condo market.