Sale of three-bedder at The Marbella sees $2.2 mil profit

A unit located at The Marbella made headlines recently when it was sold for a whopping $3.45 million in January. The unit, measuring 1,625 sq ft, was bought in October 2004 for a mere $1.24 million and resulted in a profit of $2.21 million for the seller – an annualised profit of 5.7% over the past 18 years.

The Marbella is a freehold condominium located in Mount Sinai Rise, District 10 and is one of the most profitable resale transactions reported here in Singapore. Another record-breaking resale was a 4,284 sq ft four bedroom penthouse that sold for $4.65 million in May 2010, having been bought for just $2.33 million five years prior.

The unit mix of The Marbella consists of two- to four-bedroom units, ranging from 1,076 to 4,284 sq ft, with three of these units seeing resales so far this year. One of them was sold for $2.75 million and earned the seller a $769,000 profit and an annualised profit of 3% over 10 years.

The second most profitable deal of the week was for a 1,184 sq ft three-bedroom unit at The Sail @ Marina Bay, which sold for $2.6 million. The seller earned a profit of $1.44 million (125%), which translates to an annualised profit of 4.6% in 18 years.

The Sail @ Marina Bay is a 99-year leasehold luxury condominium situated at Marina Boulevard, District 1 and consists of two towers, 70 and 63 storeys high respectively. The development was the first condo project completed in the Marina Bay area in 2008 and offers its residents access to an array of amenities, F&B options and transport links.

During the same week, the most unprofitable resale transaction happened to be at Marina Bay Suites, which is located adjacent to The Sail @ Marina Bay. The three-bedroom, 1,625 sq ft unit was sold for $3.28 million and bought in October 2011 for $3.78 million, resulting in a loss of $505,000 (13%) with an annualised loss of 1.3% over 11 years.

Apart from these two developments, large residential developments such as the 660-unit Pine Grove and the 1,006-unit Pandan Valley are located in close proximity to Mount Sinai Rise. In addition, multiple primary and higher educational institutions, including Henry Park Primary School, Clementi Primary School, Fairfield Methodist Primary School, Methodist Girls’ Primary School, Nan Hua Primary School, Anglo-Chinese Junior College, Singapore Institute of Technology and Yale-NUS College are located within 2km of The Marbella.

The most unprofitable resale at Marina The Myst Bay Suites occurred when a 2,691 sq ft four-bedroom unit was sold for $5 million on Aug 16 last year, resulting in a $3.25 million loss (39%) and an annualised loss of 5.6% over eight years.

Based on EdgeProp Singapore’s transaction data, The Marbella commands an average price of $2,091 psf, which is slightly higher than other freehold condos in the area such as Fontana Heights ($2,020 psf) and The Trizon ($1,954 psf).

The sale of a three-bedroom unit at The Marbella remains the most profitable resale transaction during the week of Jan 24 to 31. With a 177% profit for the seller, it reiterates the potential of Singapore’s property market. While there have been losses in the vicinity, it is important to note that there have been more profitable deals than unprofitable ones during this period.

As always, potential buyers are advised to always research an area before investing to determine its potential growth.