petdayA lucrative transaction can be seen at Parc Stevens, a condo on Stevens Drive in District 10. A first-floor unit was sold at a whopping $7.86 million ($2,265 psf) on April 10, after originally being purchased in April 2007 for $5.2 million ($1,500 psf). This reaped a profit of $2.65 million (51%) after a 16-year holding period. It marked the highest psf-price ever recorded at the development and the first unit to change hands this year.
The second most profitable transaction of the week occurred at Yong An Park, a freehold condo in the River Valley area. The 4-bedroom unit of 3,434 sq ft on the 10th floor was sold for $8.1 million ($2,359 psf) on April 6, after having been bought for $6.02 million ($1,753 psf) 11 years prior. This brought a gain of $2.08 million (35%).
However, the most unprofitable deal was seen at Marina Bay Suites, a 99-year leasehold development. On April 10, a four-bedroom unit measuring 2,680 sq ft on the 25th floor was sold for $5.25 million ($1,959 psf). The seller had originally bought it from the developer for $6.39 million ($2,383 psf). This led to a loss of $1.14 million (18%) over the 13-year period.
Marina Bay Suites is a 66-storey residential tower with 221 units, ranging from 1,572 to 2,691 sq ft. Since January 2021, 24 resale transactions have taken place here and 23 of them have occurred below the original purchase price. This has incurred losses ranging between $7,000 and $3.25 million.
Overall, the figures show that reselling of condo units can bring about huge profits for those who have held onto the property for a reasonable period of time. This can, however, be accompanied by risks of losses depending on the property and housing market conditions, which calls for careful consideration before making the move.
