Rewritten:
Before making an investment decision on a Condo, it is crucial to carefully consider its potential rental yield. This refers to the percentage of the purchase price that can be earned through annual rental income. In Singapore, the rental yields for Condos can vary greatly and are influenced by factors such as location, property condition, and market demand. Generally, areas that have a high demand for rentals, like those near commercial hubs or educational institutions, tend to offer more enticing rental yields. To gain a better understanding of a specific Condo’s rental potential, it is important to conduct thorough market research and seek advice from experienced real estate agents. By doing so, you can make an informed decision when investing in a Condo. Condos should always be carefully considered before making any financial commitments.
The recent sale of a unit at The Arcadia has been the most lucrative resale deal in the final weeks of December. The unit, which measures 3,767 square feet, was sold for a whopping $4.75 million, resulting in a profit of $3.25 million for the seller. This translates to a whopping 217% increase from the original purchase price of $1.5 million in 1998, which is equivalent to $398 per square foot. This means that the annualised profit over 26 years is 4.5%.
Last year, five units at The Arcadia were sold for profits ranging from $60,000 to $3.25 million. The highest profit recorded was for a 3,778 square foot unit on the fourth floor, which was sold for $4.6 million ($1,218 psf) on October 10. This resulted in a profit of $60,000 for the seller.
The record for the highest profit at The Arcadia belongs to a penthouse on the 10th floor, measuring 7,503 square feet. The unit was sold for $10 million ($1,333 psf) in 2010, resulting in a profit of $4.5 million (81%) for the seller. The penthouse was purchased for $5.5 million ($733 psf) in 2007, equating to an annualised profit of 19% over three years.
The Arcadia is a freehold condominium located in District 11, along Arcadia Road. It was completed in 1983 and has 54 years remaining on its lease. The surrounding area is known for its landed estates and Good Class Bungalows, as well as top schools such as Raffles Girls Primary School, Hwa Chong Institution, and National Junior College.
In the same period, the second most profitable resale took place at Tanglin Hill Meadows on December 10. The unit, measuring 2,077 square feet, was sold for $4.5 million ($2,166 psf), resulting in a profit of $2.7 million (150%) for the seller. This translates to an annualised gain of 3.6% over 26 years.
Tanglin Hill Meadows, a freehold condominium located in District 10, was completed in 1997 and has 77 years remaining on its lease. The most profitable resale at this development was previously recorded in 2010 when a unit measuring 2,002 square feet was sold for $3.73 million ($1,863 psf). The unit was originally purchased for $1.45 million ($724 psf) in 2005, resulting in an annualised profit of 21% over five years.
On the other hand, there have been several losses recorded at Seascape, a 99-year leasehold condominium located in Sentosa Cove. The most recent transaction involved a 2,174 square foot unit on the seventh floor, which was sold for $3.98 million ($1,830 psf) on December 18. The unit was initially purchased for $5.95 million ($2,736 psf) in 2011, resulting in a loss of $1.97 million (33%) for the seller. This equates to an annualised loss of 2.5% over 13 years.
This sale was the third resale transaction at Seascape last year, all of which resulted in losses ranging from $1.75 million to $2.53 million. The second-largest loss, amounting to $2.53 million, was recorded when a unit measuring 2,680 square feet was sold for $4.5 million ($1,679 psf) on August 14, 2024.
Seascape, completed in 2012, consists of 151 units facing the South China Sea. The units range from three to four bedrooms, measuring 2,164 square feet to 4,069 square feet. There are also penthouses measuring 3,380 square feet to 4,252 square feet, and sky villas measuring 6,631 square feet to 9,666 square feet.