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November 30, 2022

Resale Units at Sentosa Cove Condo Project Received More than $1 Million of Gains on Average

By Jean Choo

Resale condos in the suburbs and city fringe have garnered relatively decent gains in October 2022 amid steady demand for homes, based on caveats analysed by PropNex Research.

First, some details about the methodology which entails a comparison of sales caveats. The gains garnered for the units were derived by matching the condo resale transactions in October with their previous purchase prices according to caveats lodged. The average profit was subsequently computed on a project basis. To minimise sampling errors, resale condominium projects that posted fewer than five transactions during the month are excluded from the study.

Suburban and fringe condo projects dominate Top 10 gainers list
Resale prices and volume of resale transactions slowed down slightly after bouncing back in September, as the market takes some time to reel from the most recent cooling measures on 29 September. In October, the top 10 most profitable projects had average profits ranging from $1 million to nearly $170,000.

By ranking the average profit, the top 10 projects in September comprised mostly Rest of Central Region (RCR) and Outside Central Region (OCR) projects. The most profitable project, The Oceanfront, a condominium project in Sentosa Cove was the only Core Central Region (CCR) project to make the top 10 list. The project recorded five resale transactions in the month, achieving gains of $1 million on average for each transaction. It was followed by Kovan Residences in Kovan, in the OCR, which had an average profit of more than $660,000 per transaction.

Top 10 Resale Condo projects^ in terms of average gross profit*

Source: PropNex Research, URA Realis


^projects with fewer than 5 transactions in the month are excluded from this analysis
*Gains are derived from the resale transaction for each unit against the unit’s last caveated transaction; the average profit is determined on the profits of all resale transactions in the development which occurred during the month. The profit reflected is gross – it has not accounted for the applicable seller’s stamp duties, interest payable, taxes and other relevant divestment costs.
#Annualized gains is the compounded annual rate of return which shows the rate of return over the time period between the point of resale and the property’s last caveated transaction, expressed in annual percentage terms. The formula for determining this is simply: [(current resale price) / (purchase price)] time period in years-1
Analysis was done based on available data from URA Realis

Unsurprisingly, most of the projects that made the top 10 list were developments that have desirable locational or physical attributes, which contribute to price resiliency, such as being located in the city fringe (The Poiz Residences, The Interlace) or close to an MRT station (Watertown, Bartley Residences, Kovan Residences).

Here are details about the top 10 projects in October 2022:

THE OCEANFRONT @ SENTOSA COVE

Details
Location: Ocean Drive
Postal District: 4
Tenure: 99-year leasehold
Nearest MRT: Harbourfront (3,000 metres)
Year of Completion: 2010

Summary
Oceanfront @ Sentosa Cove, an iconic residential waterfront development – is located in District 4, situated within the exclusive Sentosa Cove precinct. The development is made up of five towers, varying between 12, 14 and 15 storeys. On top of the unblocked ocean views and waterfront access, residents can also enjoy much added convenience, with many shopping and entertainment options at Sentosa Resorts World or a 5-minute drive to VivoCity and Harbourfront Centre. The project was completed in 2010 and has some 264 residential units. Its facilities include a barbeque area, gymnasium room, playground, tennis courts, clubhouse, jacuzzi and swimming pool.

Transactions in October 2022

Source: PropNex Research, URA Realis

KOVAN RESIDENCES

Details
Location: Kovan Road
Postal District: 19
Tenure: 99-year leasehold
Nearest MRT: Kovan (50 metres)
Year of Completion: 2011

Summary
Kovan Residences, a modern condominium project that was completed in 2011, is located in the bustling new town of Kovan within district 19. The residential development consists of eight 18-storey towers, with 521 units. The project has a wide range of unit sizes and types, ranging from studio units up to 4-room units. Residents are spoilt with choices in terms of amenities and food options nearby, with a number of popular eating and supper spots within the Kovan commercial enclave as well as the Heartland Mall nearby.

Transactions in October 2022

Source: PropNex Research, URA Realis

THE INTERLACE

Details
Location: Depot Road
Postal District: 4
Tenure: 99-year leasehold
Nearest MRT: Labrador Park (1.1 kilometres)
Year of Completion: 2014

Summary
The Interlace is an award-winning residential development, designed by renowned international architect, Ole Scheeren. The development has become a unique landmark for its unorthodox design of interlocking residential blocks, stacked in a hexagonal arrangement. The interlocking blocks form a vertical village with cascading sky gardens and both private and public roof terraces. The Interlace stands out from the standard cookie-cutter design of many condominium projects built today. Its 1,040 units, spread over 31, 6-storey blocks are clustered around eight individually-themed courtyards, specifically designed to maximise air flow and natural light.

Located along Depot Road in the Alexandra area, The Interlace is within a short walking distance from the Gillman Barracks, with its eclectic mix of dining options. Commuters can reach the city in less than 15 minutes - the Orchard Road shopping belt is also just a short drive away or a few stops on the MRT from the Labrador MRT station, which is a 10 minutes’ walk from the development.

Transactions in October 2022

Source: PropNex Research, URA Realis

GUILIN VIEW

Details
Location: Bukit Batok Street 52
Postal District: 23
Tenure: 99-year leasehold
Nearest MRT: Bukit Gombak (250 metres)
Year of Completion: 2000

Summary
Guilin View is a charming residential development located within close proximity to the Bukit Batok Quarry (Little Guilin) in District 23. Guilin View has 655 residential units, comprising 1-bedroom units to 4- and 5-bedroom units. The project offers unblocked views of the serene quarry and Bukit Batok Nature Park. The project is also just 5 minutes’ walk from Bukit Gombak MRT Station on the North South Line, linking commuters to the commercial amenities at Jurong East, such as JEM, Westgate and IMM malls. It also takes commuters directly to the downtown CBD within 30 minutes via the MRT. Residents may also find amenities at the nearby The Rail Mall and HillV2 which is just a 5-minute drive away.

Transactions in October 2022

Source: PropNex Research, URA Realis

SEASIDE RESIDENCES


Details
Location: Siglap Link
Postal District: 15
Tenure: 99-year leasehold
Nearest MRT: Bedok (1,800 metres) / Siglap (Under construction, 125 metres)
Year of Completion: 2021

Summary
Seaside Residences is a newly built 841-unit residential development built by Frasers Property, Seisuki House and Keong Hong, that was recently completed in 2021. The closest MRT station, Bedok station is located 15 minutes’ walk away, though residents will enjoy greater convenience in the near future when the Siglap MRT Station opens. The project enjoys unblocked ocean views of the east coast shoreline and is close to amenities like East Coast Park, Bedok Mall, Bedok Point. It is also well-served by major expressways including the East Coast Parkway (ECP) and Pan Island Expressway (PIE). It is also a short 15-minute drive to the Changi Airport and the CBD via the ECP. Residents can take advantage of the full range of condominium facilities including barbeque area, tennis court, jacuzzi, playground, sauna, swimming pool, clubhouse, function room, and gymnasium.

Transactions in October 2022

Source: PropNex Research, URA Realis

WATERTOWN


Details
Location: Punggol Central
Postal District: 19
Tenure: 99-year leasehold
Nearest MRT: Punggol (50 metres)
Year of Completion: 2017

Summary
Watertown is a 1,001-unit 99-year leasehold condominium development, located at the heart of Punggol in District 19 and right next to the Punggol Waterway river. Completed in 2017, it is Punggol's first integrated waterfront development. Its commercial podium Waterway Point mall is a lifestyle and retail hub that features alfresco waterfront dining and a cineplex. On top of being connected to the Waterway Point mall and Punggol MRT/LRT station, residents also can engage in sports and aquatic activities along Punggol waterway. The development comprises 11 residential towers ranging from 11 storeys to 14 storeys, with four different offerings – suites (1- and 2-bedroom units), SOHO (2- and 3-bedroom units), condominiums (2- and 3-bedroom units), and Sky Patio (2- , 3- and 4-bedroom) – to cater to different lifestyle needs.

Transactions in October 2022

Source: PropNex Research, URA Realis

SIMS URBAN OASIS

Details
Location: Sims Drive
Postal District: 14
Tenure: 99-year leasehold
Nearest MRT: Aljunied (420 metres)
Year of Completion: 2017

Summary
Located on the city fringes in District 14, Sims Urban Oasis is a luxury mixed-use development. It has 1,024 residential units, offering purchasers a wide choice of formats, from 1-bedroom units up to 5-bedroom units. The 2, 3 and 4 bed units come with the option of a dual key configuration. Sims Urban Oasis has 7 shops and a childcare centre, with a wide range of amenities onsite. The development is also a short walk away from two hawker centres and Aljunied MRT Station on the East-West line, just several train stops away from Raffles Place and City Hall. The Pan-Island Expressway, PIE runs just behind Sims Urban Oasis, giving residents very quick access to that and other areas of the island. Sims Urban Oasis is developed by renowned developer, GuocoLand Limited along with its subsidiaries.

Transactions in October 2022

Source: PropNex Research, URA Realis

D'NEST

Details
Location: 127-149 PASIR RIS GROVE
Postal District: 18
Tenure: 99-year leasehold
Nearest MRT: Pasir Ris (450 metres)
Year of Completion: 2017

Summary
d’Nest is a residential development nestled in the heart of Pasir Ris town. It consists 912 units spread over 12 blocks. d’Nest has a wide range of units ranging from cosy 1-bedroom units up to the spacious 5-bedroom penthouses and 6-bedroom dual-key units. In addition, residents have access to a wide range of facilities on site. D’Nest is under 10 minutes’ walk from the Pasir Ris MRT Station on the East West Line, the Pasir Ris Bus interchange as well as White Sands Shopping Mall, which provides numerous retail and dining options.

Transactions in October 2022

Source: PropNex Research, URA Realis

THE POIZ RESIDENCES

Details
Location: 8-12 Meyappa Chettiar Road
Postal District: 13
Tenure: 99-year leasehold
Nearest MRT: Potong Pasir (50 metres)
Year of Completion: 2018

Summary
The Poiz Residences is a mixed-use development located in District 13, situated right next to Potong Pasir MRT station. On top of being close to an MRT station, residents enjoy much added convenience at their doorstep, with many nearby eateries in the area and the commercial shopping options within the development. There are 84 commercial units in its retail podium and 731 residential units in the residential blocks above. The residential blocks have been designed with three distinct concepts – Suites, Urban and Habitat, which are marketed at specific demographic segments. The Poiz Residences also offers a good range of facilities such as a gymnasium, swimming pool and children’s pool.

Transactions in October 2022

Source: PropNex Research, URA Realis

BARTLEY RESIDENCES


Details
Location: Lorong How Sun
Postal District: 19
Tenure: 99-year leasehold
Nearest MRT: Bartley (150 metres)
Year of Completion: 2015

Summary
Bartley Residences is a residential development located on the edge of bustling Serangoon town in District 19. Its 702 units are split over eight blocks with a unit mix ranging from 1-, 2- and 3-bedroom configurations. Bartley Residences is located just next to Bartley MRT Station on the Circle Line, which takes residents to the CBD in under half an hour. For daily necessities, residents can head to Serangoon and Tai Seng which are just a short train ride away. Being on the city-fringe and close to the MRT station, this project has been popular with a number of young working professionals and foreign expatriates. It is also well connected by major expressways, with the CBD and Orchard Road shopping belt a 15-minute drive away.

Transactions in October 2022

Source: PropNex Research, URA Realis

Top individual gainers across the Island
While suburban condominiums have been leading in terms of overall average profit by project, Central Region (CCR and RCR) condominium projects still pulled in bigger numbers in terms of profit quantum by individual deals. By ranking of the gross profit, most of the top 10 transactions were for units in condominium projects located in the city centre or fringe areas. The gross profits of the top 10 transactions – based on caveats lodged - ranged from $4.4 million to $2.07 million. The units were mostly sizeable large format condominium units that are more than 1,400 sq ft in size, and from older condominium projects built in the 1990s to early-2000s. The holding period for the top 10 resale properties were all above 10 years – the shortest being 13 years and the longest being 26 years.

Top 10 Resale Condo transactions in October 2022 by gross profit

Source: PropNex Research, URA Realis

It was found that the most profitable transaction for the month of October 2022 was for a fourth-floor unit at Nassim 9 which garnered a whooping gross profit of $4.4 million. The project was completed in 2002 and is located in the exclusive Nassim Park neighbourhood, just a stone throw’s away from Orchard Shopping District. Based on caveat records lodged from URA Realis, the unit was first bought in October 2009 and subsequently sold for $11.2 million in October 2022, with a holding period of 13 years.

Meanwhile, the second most profitable transaction in October was for a first floor unit at Astrid Meadows that was sold for an estimated profit of $3.7 million. The project was completed in 1990 and is located within the heart of the low-rise landed settlement of Holland-Bukit Timah, near several of the most prestigious good-class bungalow (GCB) estates including Bin Tong Park, Queen Astrid Park and Oei Tiong Ham Park. Resale activity in the CCR has been gaining momentum recently owing to the increase in new launch prices and some homebuyers taking the opportunity to acquire value buys in the prime districts.

Though the staggering profits raked in by the top 10 transactions may be enthralling to those thinking to buy into these projects, one should note that the profits are specific to that particular unit – in other words, a unit in the same project may not necessarily pull in similar numbers due to the different property attributes, entry prices and market conditions at the time of sale.



Disclaimer:
While every reasonable care is taken to ensure the accuracy of information printed or presented here, no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The ideas, suggestions, general principles, examples and other information presented here are for reference and educational purposes only.

This information contained herein is not in any way intended to provide investment, regulatory or legal advice or recommendations to buy, sell or lease properties or any form of property investment. PropNex shall have no liability for any loss or expense whatsoever, relating to any decisions made by the audience.

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