Investing in a condo in Singapore is a smart choice for many
However, before making an investment, it is crucial to carefully consider various factors. Location is a key aspect to keep in mind as it can greatly impact the success of a condo investment. It is essential to research the neighborhood and ensure that it meets your investment goals. Apart from location, financing options must also be carefully evaluated to determine the most suitable option for your budget and goals.
Moreover, government regulations and market conditions play a crucial role in a condo’s success as an investment. It is important to stay updated on any changes in regulations and market trends to make informed decisions. Seeking professional advice from experts in the real estate industry can also help guide investors in making the best investment choices.
For both local and foreign investors, condos in Singapore offer a compelling opportunity to diversify their portfolio and achieve stable and profitable returns. By conducting thorough research and seeking professional guidance, investors can maximize their returns in Singapore’s dynamic real estate market. So, whether you are a local investor looking to expand your investment portfolio or a foreign buyer seeking a lucrative opportunity, consider investing in a condo in Singapore for long-term success.
During the week of November 12 to 19, the most profitable condo resale deal was recorded at Maple Woods, where a three-bedroom unit was sold for $3.3 million ($2,144 psf) on November 15. The 1,539 sq ft unit on the first floor had been purchased in April 2009 for $1.28 million ($830 psf), resulting in the seller making a profit of $2.02 million. This translates to a capital gain of 158% or an annualized profit of 10.6% over a holding period of approximately 15 and a half years.
Maple Woods is a freehold condo situated in prime District 10, along Bukit Timah Road. Built in 1997, it boasts 697 units ranging from two-bedders to four-bedders, with sizes ranging from 850 sq ft to 3,003 sq ft. The development is a short five-minute walk from King Albert Park MRT Station on the Downtown Line and is also near reputable schools such as Methodist Girls’ School and the Rail Corridor.
There have been 10 other resale transactions at Maple Woods this year, all of which have been profitable deals with the sellers making gains of at least $425,000. Three of these units were sold for profits of over $2 million. The first was a 1,787 sq ft three-bedroom unit on the eighth floor that was sold for $3.75 million ($2,099 psf), netting the seller a profit of $2.15 million. They had originally purchased the unit in July 1997 for $1.6 million ($895 psf).
The second unit was a 1,787 sq ft three-bedroom unit that was sold for $3.82 million ($2,138 psf) on September 10. The seller, who had bought the unit in March 2007 for $1.35 million ($756 psf), made a profit of $2.47 million. The third unit was also sold on September 10. The 3,003 sq ft four-bedroom unit on the eighth floor was transacted at $5 million ($1,665 psf). The seller, who had bought the unit in September 1998 for $2.4 million ($798 psf), made a gain of $2.6 million.
UE Square saw the second most profitable condo resale deal during the week of November 12 to 19. A three-bedroom unit measuring 1,528 sq ft on the seventh floor was sold for $2.95 million ($1,930 psf) on November 14. The seller had bought the unit through a sub-sale in December 1997 for $1.3 million ($850 psf), resulting in a profit of $1.65 million (127%) after owning the unit for nearly 27 years.
This deal ranks as the fourth most profitable resale transaction at UE Square. The highest profit recorded at this development is for a four-bedroom penthouse spanning 3,089 sq ft, which sold for $6.27 million ($2,031 psf) on October 6, 2023. The seller, who had bought the unit for $4.1 million ($1,327 psf) in December 2009, made a $2.17 million profit.
:
Proper financing is a crucial aspect to consider when investing in a Condo. In Singapore, there is a wide variety of mortgage options available to potential buyers. However, it is crucial to have a comprehensive understanding of the Total Debt Servicing Ratio (TDSR) framework. This guideline sets a limit on the loan amount that a borrower can obtain based on their income and current debt obligations. It is essential for investors to thoroughly understand the TDSR and seek guidance from financial experts or mortgage brokers to make well-informed decisions about financing. This will prevent them from overextending their financial resources and allow them to successfully invest in a Condo that fits within their budgetary constraints. It is important to keep in mind the TDSR when considering financing options for a Condo investment. Consulting with professionals can provide valuable insight and aid in securing a desirable and affordable Condo.
UE Square is part of UE BizHub City, a mixed-use development along Clemenceau Avenue in District 9, near Clarke Quay. It comprises an 18-storey office building with a four-storey shopping podium and a pair of 18-storey residential towers housing 345 units. A service road separates the commercial tower from the residential towers.
The residences at UE Square consist of one- to five-bedders ranging from 506 sq ft to 2,379 sq ft, as well as penthouses spanning 3,089 sq ft. The development is located near Fort Canning MRT Station on the Downtown Line.
Lastly, the most unprofitable condo resale deal during the week of November 12 to 19 was recorded at Tomlinson Heights, where a three-bedroom unit measuring 2,745 sq ft on the 19th floor was sold for $8.25 million ($3,006 psf) on November 19. The seller had originally purchased the unit from the developer in February 2011 for $8.85 million ($3,225 psf), incurring a loss of about $601,000 (6.8%) after holding on to the unit for almost 14 years.
Tomlinson Heights is a luxury 70-unit condo situated off Orchard Boulevard, comprising a 36-storey tower with a mix of three- and five-bedroom units ranging from 2,551 sq ft to 6,738 sq ft. Completed in 2014, the freehold development is within walking distance of malls along the Orchard Road shopping belt.
This transaction is the first caveated deal at Tomlinson Heights since January 5, 2023, when another 2,745 sq ft unit was sold for $10.5 million ($3,825 psf). The seller, who had bought the unit from the developer in May 2011 for $8.38 million ($3,053 psf), made a profit of $2.12 million.