Sale Triplex Penthouse 999 Year Leasehold Southaven Ii Makes Record 378 Mil Profit
The recent sale of a rare triplex penthouse at Southaven II made headlines as the owner earned a record profit of $3.78 million (236%). The 999-year leasehold unit, spanning 5,468 sq ft across the eighth to 10th floors, was sold on Sept 12 for $5.38 million ($984 psf). This was a significant increase from its previous purchase price of $1.6 million ($293 psf) in 2006. With an annualised profit of 6.4% over nearly two decades, the seller enjoyed a hefty return on investment.
This transaction has taken the top spot as the most profitable resale during the week of Sept 9 to 16 at Southaven II. It surpassed the previous record profit set at the condo by a three-bedroom unit on the fifth floor, which was sold for $2.55 million ($1,692 psf) last October. The unit was acquired for $789,668 ($524 psf) in 2007, resulting in a profit of $1.76 million (222%) or an annualised profit of 6.9% over 17 years.
Southaven II, completed in 1999, is a 293-unit development along Hinhede Walk in District 21. It is located near Bukit Timah Nature Reserve and its main entrance on Hinhede Drive, as well as the shops and MRT station at Beauty World.
Based on data from EdgeProp Singapore, the average price at Southaven II has risen from about $630 psf in September 2005 to $1,000 psf in September 2016. The latest average resale price is $1,580 psf. The closest freehold/999-year leasehold project is Springdale Condominium, a 480-unit development also on Hinhede Walk, with an average price of $1,690 psf.
Another notable transaction took place at Sky@Eleven, a freehold condo in District 11, where a four-bedroom unit on the 34th floor changed hands for $6.45 million ($2,378 psf) on Sept 11. This was a significant increase from its previous sale price of $3.27 million ($1,205 psf), resulting in a profit of $3.18 million (97%) or an annualised profit of 3.7% over 18 years.
This transaction ranks as the third most profitable at Sky@Eleven so far. The record profit was set by a four-bedder on the 37th floor, sold for $6.48 million (2,389 psf) last April. The unit was acquired for $2.8 million ($1,031 psf) in 2007, resulting in a profit of $3.68 million (131%).
The highly anticipated North-South Corridor (NSC) is set to revolutionize the connectivity of Sembawang EC Canberra with the rest of the city. This game-changing infrastructure is currently being built and is estimated to be finished in stages over the coming years. Its strategic location along Sembawang Road will provide seamless and efficient access to the new EC development, making it an attractive choice for homebuyers. For more information on Sembawang EC Canberra, check out the website.
Sky@Eleven, completed in 2010, is a 273-unit development on Thomson Lane in Toa Payoh, near the upcoming HDB estate around Caldecott MRT Interchange and three schools. Prices there have risen steadily from about $1,600 psf in September 2015 to $2,250 psf currently. A similar freehold condo in the vicinity is Trillis Towers, with an average price of $2,070 psf.
On the other hand, the most unprofitable transaction during the week was the sale of a three-bedroom unit at Reflections at Keppel Bay, where the seller incurred a loss of $1.02 million (25%) on Sept 9. The 1,938 sq ft unit was sold for $3 million ($1,548 psf), following its purchase for $4.02 million ($2,074 psf) in July 2013. This resulted in an annualised loss of 2.4% over 12 years.
Despite its prestigious waterfront location and luxurious amenities, Reflections at Keppel Bay has seen 22 unprofitable deals out of 48 caveated resale transactions so far this year. The most unprofitable deal involved a three-bedroom unit in one of the low-rise residential blocks, sold for $2.8 million ($1,616 psf) on July 3, after being purchased for $4.18 million ($2,412 psf) in 2013.
Completed in 2011, Reflections at Keppel Bay is a 99-year leasehold development with 1,129 units. It is located in District 4, near the upcoming HDB estate around the Caldecott MRT Interchange. Prices at the condo have also seen positive growth, rising from about $1,600 psf in September 2015 to $2,250 psf currently. A similar freehold condo in the area is Trillis Towers, with an average price of $2,070 psf.
In conclusion, these latest transactions at Southaven II, Sky@Eleven and Reflections at Keppel Bay showcase the potential for high profits in the property market, but also highlight the importance of thorough research and careful consideration when making a resale investment.