Project Spotlight: These Geylang freehold condos see more losses than gains

There are four condos located along Lorong 24 Geylang, namely #1 Loft, Edenz Loft, The Octet, and Rezi 24 (see Map 1). Residents of these condos benefit from being within walking distance of amenities such as Aljunied MRT Station, Pavilion Square, Old Airport Road Food Centre, Kallang Estate Fresh Market and Food Centre and the Singapore Badminton Hall. Schools within a 1 km radius include Kong Hwa School, Geylang Methodist School (Primary and Secondary) and Broadrick Secondary School.

Source: EdgeProp LandLens (as at 15 April 2025)

The four condos share many similarities, including their freehold tenures and their locations within District 14 and the East Region. Additionally, all four are small developments with a limited number of units. #1 Loft, Edenz Loft, and The Octet each have fewer than 100 units, while Rezi 24 is the largest, with 110 units (see Table 1).

Rezi 24, having obtained its temporary occupation permit (TOP) in 2023, is also the newest development among the four. Edenz Loft is the oldest, having obtained its TOP in 2015. #1 Loft and The Octet obtained their TOP in 2016, making them a year younger.

Unprofitable transactions exceed profitable ones

Despite their many similarities, sellers of units in the four condos experienced different profitability outcomes. Sellers of units in #1 Loft fared the worst, with 24 unprofitable and only seven profitable transactions (see Table 2). Sellers of units in Edenz Loft fared better, with eight unprofitable and seven profitable transactions.

In contrast, sellers of units in Rezi 24 likely fared the best, with six profitable and only two unprofitable transactions. The sellers of The Octet also fared well, with 10 profit-making and seven loss-making transactions.

The silver lining is that the maximum losses from all four condos are not substantial, with the highest loss still well under $150,000. However, the maximum profit achieved is also modest, with the highest being below $180,000.

#1 Loft: Most unprofitable transactions and the highest loss

Among the four condos, #1 Loft has the highest number of unprofitable transactions. Furthermore, the condo’s largest loss of approximately $145,000 is also the highest among the four developments.

The transaction that resulted in the greatest loss occurred in December 2019, when the seller sold the unit for $615,000 ($1,120 psf), after having purchased it from the developer in June 2013 for $760,365 ($1,385 psf). However, the same unit was sold again in June last year for $750,000 ($1,366 psf), resulting in a profit of $135,000 for the second seller (see Table 3).

Source: EdgeProp Buddy (as at 22 April 2025)

It is notable that the most recent transacted price for the unit is still lower than the initial purchase price of $760,365, indicating that the first seller would have made a loss even if they had held onto the unit and sold it last year at the recent transacted price of $750,000.

A possible reason for the loss experienced by the first seller is that they purchased the unit at a higher-than-average price and sold it at a lower-than-average price. The first seller bought the unit at $1,385 psf in 2013, which was higher than the condo’s average price of $1,323 psf that year. They then sold the unit in 2019 for $1,120 psf, which was below the average price of $1,152 psf at the time (see Chart 1).

The second seller benefitted from purchasing the unit at a lower-than-average price in 2019. Furthermore, they sold the unit last year for $1,366 psf, which was above the condo’s average price of $1,328 psf at that time.

Source: EdgeProp Market Trends (as at 22 April 2025)

Notably, there have never been more than five resale transactions for #1 Loft per year, which could be because it is a small development with only 80 units. The limited number of transactions means that buyers and sellers have fewer price benchmarks, which could have impacted pricing for the condo.

The unit that incurred the highest loss for #1 Loft is a one-bedroom duplex on the eighth storey. The upper level of the 549-sq ft unit comprises an en-suite master bedroom and a private roof terrace. The living/dining area, kitchen, and a common bathroom are located on the lower level (see Floor Plan 1). Occupants of the duplex will find it convenient to have a bathroom on both levels. Furthermore, guests do not need to go through the master bedroom, or even the lower level, to use a bathroom.

Source: EdgeProp Research

Edenz Loft: Lowest loss

Despite having the second-highest number of unprofitable transactions, Edenz Loft recorded the lowest maximum loss among the four condos, at just $52,000.

The seller of the unit in Edenz Loft that incurred this loss had also purchased the unit in 2013, the same year as the seller of the most unprofitable unit in #1 Loft. This Edenz Loft unit was bought from the developer in January 2013 for $552,000 ($1,315 psf) and sold in February 2021 for $500,000 ($1,191 psf), resulting in a loss of $52,000.

Unfortunately, the sale took place in 2021, when the average price for Edenz Loft had barely recovered from its lowest point in 2020. From 2013 to 2021, the average price for the condo declined by 6.7% (see Chart 2).

Additionally, the unit was sold at $1,191 psf, which was below the condo’s average price of $1,229 psf that year. If the seller had sold it at the average price, the loss would have been smaller at approximately $36,000.

Source: EdgeProp Market Trends (as at 22 April 2025)

The unit involved in the most unprofitable transaction for Edenz Loft is a 420-sq ft unit on the fourth storey. It features one bedroom, a study nook, and a balcony adjacent to the living area (see Floor Plan 2). The study nook is located near the kitchen, making it ideal for conversion into a dining area for occupants who do not require a study. The unit also includes a common bathroom that can be conveniently accessed from both the bedroom and the study.

Source: EdgeProp Research

The Octet: Second highest loss

The record-high loss of approximately $106,000 occurred when the seller sold the unit in February 2020 for $500,000 ($1,161 psf). The seller had purchased the unit from the developer in October 2014 for $605,593 ($1,407 psf). This loss is also the second-highest maximum loss among the four condos.

Unfortunately, the sale took place in 2020, when the average price for The Octet had reached a record low of $1,251 psf (see Chart 3), before rebounding to $1,408 psf in 2021. From 2014 to 2020, the average price at The Octet fell by 7.7%.

To add to the seller’s woes, the unit was sold at a below-average price of $1,161 psf in 2020. If it had been sold at the average price of $1,251 psf that year, the loss would have been smaller at approximately $67,000. Furthermore, if the seller had kept the unit and sold it in 2021 at the then-average price of $1,408 psf, they would have made a small profit of approximately $430.

Source: EdgeProp Market Trends (as at 22 April 2025)

The 431-sq ft unit is located on the seventh storey. It shares a similar layout to the most unprofitable unit at Edenz Loft. This unit at The Octet also features a study nook near the kitchen, as well as a balcony adjacent to the living room. Additionally, there is a common bathroom that can be accessed from both the study and the lone bedroom in the unit (see Floor Plan 3).

Source: EdgeProp Research

Rezi 24: Least number of unprofitable transactions

The sellers of units in Rezi 24 likely fared the best compared to sellers in the other three condos, as there were only two unprofitable transactions for Rezi 24.

The unit that incurred the highest loss of approximately $63,000 was purchased by the seller from the developer in January 2021 for $1.843 million ($1,556 psf). This purchase price was lower than the average price of $1,590 psf for the condo at that time (see Chart 4).

The seller sold the unit in December last year for $1.78 million ($1,503 psf), which was significantly lower than the average price of $1,712 psf for Rezi 24 that year. This could have contributed to the resultant loss. If the seller had sold the unit at the average price of $1,712 psf, they would have made a profit of approximately $185,000.

Source: EdgeProp Market Trends (as at 22 April 2025)

Unlike the other three condos, the most unprofitable transaction from Rezi 24 does not involve a one-bedroom unit, but a four-bedroom unit measuring 1,184 sq ft. Furthermore, three of the bedrooms have their own attached bathrooms. The en-suite master bedroom also has its own private roof terrace (see Floor Plan 4).

The unit, located on the eighth storey, has a second roof terrace that is accessible via the living room and Bedroom 4, which are adjacent to each other. Occupants who prefer a larger living/dining area could consider removing the wall that separates the living area from the bedroom. Notably, Bedroom 4 is the only bedroom without an attached bathroom.

Source: EdgeProp Research

One-bedders dominate unprofitable transactions

It is notable that the most unprofitable units in three of the four condos are one-bedroom units measuring 600 sq ft or less.

Additionally, most of the unprofitable transactions for all four condos involved one-bedroom units. All eight unprofitable transactions for Edenz Loft involved one-bedroom units. Of the 24 unprofitable transactions for #1 Loft, all but two involved one-bedroom units. As for The Octet, only one of its seven unprofitable transactions did not involve a one-bedroom unit. Only Rezi 24 bucks the trend, with both of its unprofitable transactions involving four-bedroom units.

Part of the reason for this trend is that Edenz Loft features only one-bedroom units, while approximately 85% of the units in #1 Loft and The Octet are one-bedroom units. The remaining units in #1 Loft feature three bedrooms, while those in The Octet feature two bedrooms. Rezi 24, however, offers a wider variety, with units ranging from one to four bedrooms. However, over 80% of the units in Rezi 24 have either one or two bedrooms.

The small size of one-bedroom units could limit their appeal to only certain buyers. For owner-occupiers, one-bedroom units will not have sufficient space for large households, making them more attractive to singles. However, some single Singaporeans might prefer a HDB flat due to recent changes to HDB’s rules that favour them.

Single Singaporeans can purchase a HDB flat upon reaching 35 years old. While they are restricted to two-room HDB flats if they are purchasing a build-to-order (BTO) flat, there are no restrictions on flat type if they purchase a resale flat. Furthermore, past restrictions on location have been lifted, allowing them to purchase a BTO flat or resale HDB flat anywhere on the island. The comparative affordability of HDB and BTO flats, compared to condo units of similar size and location, could attract more single local buyers.

Savvy investors know that two-bedroom units appeal to a wider pool of tenants. The smaller one-bedroom units are likely to attract single tenants or couples with a modest rental budget. However, the larger size of two-bedroom units widens the potential tenant pool to include small families of three persons.

Given the limited appeal of one-bedroom units, it is hardly surprising that the resale volume of one-bedroom units peaked at 2,808 units in 2021 but has remained stagnant at 2,036 to 2,213 from 2022 to last year. Resale volume for one-bedroom units stands at 620 units thus far this year (see Chart 5).

Source: EdgeProp Market Trends (as at 23 April 2025)

Since 2020, the average resale price for condos of all sizes islandwide ($1,778 psf) has surpassed that of one-bedroom units ($1,626 psf) (see Chart 6). This could be because condo units of all sizes have experienced stronger growth of 31.4% since 2020, compared to a weaker growth of 20.7% for one-bedroom units.

Source: EdgeProp Market Trends (as at 23 April 2025)

Even if we narrow our focus to District 14, similar price trends can be observed. The average resale price for condo units of all sizes ($1,784 psf) in District 14 surpassed that of one-bedroom units ($1,666 psf) in 2021 (see Chart 7). This is due to stronger price growth for units of all sizes (40%) since 2021, compared to one-bedroom units (37.9%).

Source: EdgeProp Market Trends (as at 23 April 2025)

Past reputation lingers

The average resale price for freehold condos in District 14 ($1,516 psf) has consistently trended below that of their counterparts in the East Region ($1,706 psf) and islandwide ($1,953 psf) (see Chart 8). This is despite District 14 being well-connected to the rest of the island via the MRT network and the Pan Island and Kallang-Paya Lebar Expressways. Furthermore, numerous amenities are located in the district, including Geylang Methodist School (Primary and Secondary), Canossa Catholic Primary School, Kong Hwa School, Sims Vista Market and Food Centre, Kallang Estate Fresh Market and Food Centre, Old Airport Road Food Centre, Upper Boon Keng Market and Food Centre, and the Singapore Sports Hub.

Source: EdgeProp Market Trends (as at 23 April 2025)

The lower average resale price for freehold condos in District 14 could have been affected by the seedy past reputation of Geylang, which might have deterred some from living in or renting in the area. Additionally, buyers of properties in Geylang may experience more difficulties securing a mortgage loan or may be charged higher interest rates.  The government has improved public lighting and increased the number of CCTVs in Geylang, which has led to a safer neighbourhood.

Conclusion

Well-located freehold condos with numerous nearby amenities tend to be in high demand by buyers, resulting in strong price growth and profits for their sellers. However, the four condos along Lorong 24 Geylang seem not to have benefitted from being surrounded by amenities. Two of the four freehold condos experienced more unprofitable than profitable transactions. Furthermore, the highest profit for all four condos are well under $180,000.

One reason for the less-than-ideal profitability of these condos could be that the majority of the units in #1 Loft, Edenz Loft, and The Octet are one-bedroom units, whose smaller size makes them less attractive to larger households. Additionally, the recent changes to HDB rules for single buyers and the comparative affordability of HDB flats are compelling factors that may lead single buyers to choose a HDB flat over a condo unit.

While the government has made significant efforts to transform Geylang, the neighbourhood has yet to fully shake off its seedy past. This is reflected in the lower prices and slower price growth for freehold condos in District 14 compared to their counterparts in the East Region and islandwide.