Resale of three-bedder at De Royale rakes in $1.44 mil profit

Units at V on Shenton cost an average of $1,772 psf.The most profitable resale during the week of June 13 to 20 at De Royale was a three-bedroom unit sold for $2.2 million ($1,747 psf). It had been bought for $757,918 ($602 psf) back in October 2006, resulting in an impressive profit of $1.44 million (190.2%), which translates to an annualised return of 6.6% over almost 17 years.

The second most profitable resale during the week was at Tanglin Park in District 10. A 1,109 sq ft two-bedroom unit fetched $2.6 million ($2,341 psf) on June 13. It had been bought for $1.22 million ($1,100 psf) in February 2000, resulting in a profit of $1.38 million (112.7%), which translates to an annualised return of 3.3% over 23 and a half years.

On the other hand, the most unprofitable transaction during the week were two units at Marina Bay Residences. A 1,055 sq ft two-bedder was sold for $2.4 million ($2,275 psf) on June 13. It had previously fetched $2.88 million ($2,731 psf) in April 2010, and the seller suffered a loss of about $481,000 (17.5%), or an annualised loss of 1.4% over 13 years.

The other unprofitable sale at Marina Bay Residences was a 1,636 sq ft three-bedder, sold for $3.78 million ($2,310 psf) on June 13. It had been bought for $4 million ($2,450 psf) in November 2007, resulting in a loss of $229,040 (5.7%), or an annualised return of 0.3% over 15 and a half years.

Overall, these resale transactions demonstrate the potential for profit in the Singapore property market over the long-term.

De Royale is a freehold condo on Jalan Rama Rama, off Balestier Road in District 12. Developed by local property group Hoi Hup Realty and completed in 2006, the development comprises twin 36-storey blocks with a mix of two-bedroom-plus-study units to four-bedroom penthouses.

The Balestier neighbourhood, served by the Pan Island Expressway, Balestier Road and Thomson Road, has seen steady increases in property prices at De Royale since its completion. The average price was around $1,175 psf in June 2013 and has moved up to $1,593 psf last month. This makes it the second most expensive condo in the vicinity, after the freehold Skysuites 17 at 17 Jalan Rajah, which commands the highest average price of $1,789 psf.

Surrounding condos, such as Casa Fortuna ($1,471 psf) on Ah Hood Road, D’Mira ($1,433 psf) on Boon Teck Road, and The Verve ($1,420 psf) on Jalan Rajah, typically command lower prices.

Tanglin Park, located at the corner of Tanglin Road and Ridley Park in District 10, was developed by mainboard-listed property group City Developments and completed in 1989. The freehold condo comprises 12 five-storey residential blocks, with a mix of two- to four-bedroom units ranging from 1,023 to 2,067 sq ft.

The Myst Condo comprises three 19-storey tall apartments blocks with 663 apartment units available ranging from one-bedroom to four-bedrooms. The condominium also comes with a large outdoor swimming pool for residents to relax and unwind. The development also features a pavilion, BBQ pits, kid’s playground, multi-purpose court, gym, and function rooms. These facilities are perfect for residents of The Myst Condo to spend quality time with family and friends.

Situated in an exclusive neighbourhood, Tanglin Park is close to amenities such as the sprawling Dempsey Hill retail and lifestyle enclave, as well as malls and hotels along Tanglin Road. Queenstown Primary School is within 1km of the condo, and nearby schools include Alexandra Primary School, Crescent Girls’ School, and Queenstown Secondary School.

Marina Bay Residences is a 55-storey, 428-unit condo on Marina Boulevard in District 1, which is part of the Marina Bay Financial Centre. There are only a handful of condos along that stretch of Marina Boulevard: The Sail @ Marina Bay, Marina Bay Suites, V on Shenton, and Marina One Residences.

Based on a tabulation of resale caveats by EdgeProp Singapore, Marina Bay Residences and Marina One command the highest average prices in the area at $2,187 psf and $2,379 psf, respectively. Meanwhile, The Sail @ Marina Bay sees units going for an average of $1,925 psf, while units at Marina Bay Suites fetch an average of $1,919 psf. Units at V on Shenton cost an average of $1,772 psf.

These recently concluded resale transactions demonstrate the potential for profit in the Singapore property market over the long-term. With the right location and timing, sellers should be able to reap rewards in the form of profits or returns on their investments.