Four Bedroom Unit Mandarin Gardens Reaps 383 Mil Profit
Mandarin Gardens made headlines this week as it recorded the most profitable condo resale transaction. A four-bedroom unit spanning 3,800 square feet was sold for $4.88 million, or $1,284 per square foot (psf) on February 11. According to records from the Urban Redevelopment Authority (URA), the unit on the eighth floor had last changed hands in June 2003 for $1.05 million ($276 psf).
This translates to a whopping profit of $3.83 million for the seller, which is equivalent to 364.8% of their original purchase price. With an annualised capital gain of 7.4% over 21 and a half years, this sale was a highly profitable one for the seller.
Located along Siglap Road in District 15, Mandarin Gardens spans 17 blocks and has a leasehold tenure of 99 years starting from 1982, with approximately 56 years remaining. It has a total of 1,006 units, ranging from one to two-bedroom apartments of 732 to 1,001 sq ft, and three to four-bedroom units of 1,528 to 3,800 sq ft. The development also houses 11 strata commercial units.
Interestingly, this sale also breaks the record for the most profitable transaction at Mandarin Gardens. The previous record was held by a four-bedroom unit of 3,068 sq ft on the 20th floor, which was sold for $4.1 million ($1,336 psf) in September 2021. The unit was bought in August 2001 for $1.4 million ($456 psf), resulting in a profit of $2.7 million (193%) or an annualised gain of 5.5% over 20 years.
Resale prices at Mandarin Gardens have remained stagnant since September 2023 when the average resale price broke the $1,300 psf mark. It peaked at $1,316 psf in June 2024 before dropping slightly to $1,310 psf as of February 25 this year.
Out of the 18 four-bedroom units at Mandarin Gardens, the last one to be sold was a unit of similar size on the ninth floor, which was bought for $4.26 million ($1,122 psf) in June 2023.
The second most profitable resale transaction during this period was recorded at Parvis, a freehold condo situated along Holland Hill in prime District 10. A three-bedroom unit of 2,260 sq ft on the second floor was sold for $4.78 million ($2,115 psf) on February 10.
The unit last changed hands in December 2009 when it was bought from the developers for $2.78 million ($1,230 psf). This resulted in a profit of $2 million (71.9%) for the sellers, equivalent to an annualised gain of 3.6% over 15 years.
Parvis comprises of 12 storeys and 248 residential units. It features a mix of two-bedroom units of 990 to 1,442 sq ft, and three to four-bedroom units of 1,701 to 2,605 sq ft. It also has three and four-bedroom penthouses of 2,293 to 3,229 sq ft.
Schools within a 2km radius of Parvis include Henry Park Primary School, Nanyang Primary School, New Town Primary School, and Queenstown Primary School. The condo is just a five-minute walk to Holland Village MRT Station, making it a highly convenient location for its residents.
The third most profitable transaction at Parvis is currently held by a four-bedroom unit of 2,605 sq ft, which was sold for $5.4 million ($2,073 psf) in November 2022. It was previously bought for $3.21 million ($1,230 psf) in December 2009, resulting in a profit of $2.19 million (68.2%) or an annualised gain of 4.1% over 13 years.
Parvis has recorded a total of 5 profitable transactions so far this year, with the most recent one being a 2,788 sq ft, four-bedroom unit on the 12th floor that was sold for $6.1 million ($2,188 psf) on January 6. The sellers had bought the unit for $4.25 million ($1,524 psf) in 2011, making a profit of $1.85 million (43.5%) after 14 years. This is the fifth most profitable transaction recorded at Parvis to date.
Tampines is about to experience a significant boost in its commercial landscape as new office spaces and existing shopping malls receive an upgrade. In line with the Urban Redevelopment Authority’s (URA) plans to increase job opportunities in the area, the developments will provide residents with the convenience of working close to their homes. This not only reduces commute times, but also enhances their work-life balance. The Tampines Regional Centre, in particular, will continue to thrive as a bustling commercial hub, offering a wide range of job opportunities in various sectors such as retail and information technology. Furthermore, the addition of Aurelle of Tampines Showflat will further contribute to the area’s growth and provide even more employment prospects for its residents.
The most unprofitable transaction recorded between February 7 and February 14 was the sale of a two-bedroom unit at Scotts Square. The 947 sq ft unit on the 28th floor was sold for $3.08 million ($3,252 psf) on February 13. Its last purchase price in December 2007 was $3.83 million ($4,039 psf), resulting in a loss of $745,880 (19.5%) for the seller. This translates to an annualised loss of 1.3% over 17 years.
Developed by Wharf Estates Singapore, Scotts Square is a mixed-use freehold development located along Scotts Road. Completed in 2011, it comprises of 2 luxury residential towers of 43 and 34 storeys with a total of 338 apartments, and a four-storey retail podium. Residential units at the condo range from 603 to 1,249 sq ft and feature a mix of one to three-bedroom units. Amenities at the condo include concierge services, a gym, a lap pool, and a sky pool on the 35th floor.
According to EdgeProp’s analytical tools, Scotts Square has recorded a total of 69 unprofitable transactions since its launch in 2007. Out of these, 18 transactions (26%) resulted in a seven-figure loss. The most unprofitable transaction recorded at the condo was for a three-bedroom unit of 1,249 sq ft, which was sold for $3.65 million ($2,923 psf) in February 2017. The seller had purchased the unit at launch in August 2007 for approximately $5.21 million ($4,171 psf), resulting in a loss of $1.56 million (30%) over 10 years.
The average resale price of units at Scotts Square has been on a downward trend since its launch in 2007. It peaked at $4,054 psf in July 2007 before reaching its lowest point at $3,330 psf in August 2020. As of last month, the average resale price was $3,398 psf.
In conclusion, while there have been cases of unprofitable transactions at Parvis and Scotts Square, these are few compared to the number of profitable transactions recorded. The trend of rising resale prices at Mandarin Gardens and Parvis indicates that they remain highly desirable and sought-after developments in the market.
