Three-bedroom unit at Pinewood Gardens sold at $2.62 mil profit

The sale of a three-bedroom unit at Pinewood Gardens was the most profitable transaction during the week of April 1 to 8. The 1,668 sq ft unit on the fifth floor fetched $3.72 million ($2,230 psf) on April 3. The unit had been bought for $1.1 million ($659 psf) in June 2004. As a result, the seller made a record profit of $2.62 million (238%), which translates to an annualised gain of 6% over nearly 21 years.

Pinewood Gardens is a freehold condominium on Balmoral Park in prime District 10. Completed in 1990, the 149-unit development features a mix of two- to four-bedroom units of 1,227 sq ft to 2,099 sq ft.

The deal on April 3 is the most profitable resale transaction at Pinewood Gardens to date. It surpasses the previous record, which was set when a three-bedder on the third floor transacted for $3.55 million ($2,142 psf) in August 2022. The 1,658 sq ft unit was purchased for $1.53 million ($923 psf) in 1999. Hence, the seller made a profit of $2.02 million (132%), which translates to an annualised gain of 3.7% over 23 years.

A 1,668 sq ft unit at Pinewood Gardens was sold for $3.72 mil ($2,230 psf) on April 3. (Picture: Samuel Isaac Chua/The Edge Singapore)

Last year, two resale transactions were recorded at Pinewood Gardens, and both were profitable. A 1,647 sq ft three-bedder changed hands for $3.65 million ($2,216 psf) on Oct 18. It had previously fetched $2.75 million ($1,670 psf) in December 2007. Thus, the seller made a profit of $899,262 or an annualised gain of 1.6% over 16 years.

Last June, a 1,636 sq ft, three-bedroom unit was sold for $3.65 million ($2,231 psf). It had been bought for $1.83 million ($1,118 psf) in 1997. The sale resulted in a profit of $1.82 million or an annualised gain of $2.5% over 26 years.

The second most profitable resale during the week took place at Varsity Park Condominium, a 99-year leasehold development on West Coast Road in District 5. A duplex penthouse on the fifth floor was sold for $3.12 million ($1,374 psf) on April 3. The 2,271 sq ft three-bedroom unit had been purchased for $919,755 ($405 psf) in January 2006. Thus, the seller made a profit of $2.2 million (239%), or an annualised gain of 6.6% over 19 years.

Previously, the record profit at Varsity Park Condo was $2.01 million, made when a 2,153 sq ft penthouse unit was transacted for $2.93 million ($1,365 psf) on March 27 this year. The three-bedder penthouse unit had been bought for $919,331 ($427 psf) in February 2007. Hence, the seller made an annualised gain of 6.6% over 18 years.

A penthouse at Varsity Park Condo raked in a record profit of $2.2 mil when it was sold on April 3. (Picture: Samuel Isaac Chua/The Edge Singapore)

The 530-unit Varsity Park Condo was completed in 2008, and features a mix of two- to three-bedroom units of 990 sq ft to 2,347 sq ft. The development is beside the Kent Ridge Campus of the National University of Singapore, and is close to other schools such as the Japanese Primary School, the Waseda Shibuya Senior High School in Singapore, Kent Ridge Secondary School, and Yale-NUS College.

Based on a compilation of URA caveats by EdgeProp Singapore, the average resale price at Varsity Park Condo has climbed from $1,060 psf in July 2020 to approximately $1,447 psf currently. In addition, rental data shows an average rental yield of about 3.5%, based on a compilation of rental caveats. Average rent at Varsity Park Condo is about $4.2 psf per month.

Meanwhile, the least profitable transaction during the week involved a 2,067 sq ft unit at Marina Bay Suites. The four-bedroom unit on the 60th floor changed hands for $4.2 million ($2,036 psf) on April 3. The unit had been purchased for $5.05 million ($2,444 psf) in April 2015. Thus, the seller incurred a loss of $843,336 (17%), or an annualised loss of 1.8% over 10 years.

A four-bedroom unit at Marina Bay Suites changed hands for $4.2 million ($2,036 psf) on April 3. (Picture: Samuel Isaac Chua/The Edge Singapore)

According to URA caveats, this is the 16th consecutive transaction at Marina Bay Suites that has resulted in a loss since 2023. In this time, losses have ranged from $40,000, when a 1,615 sq ft unit was sold for $3.14 million ($1,946 psf) last December, to $2.05 million when a 2,691 sq ft unit was transacted for $5.65 million ($2,100 psf) last May.

The most unprofitable resale transaction at Marina Bay Suites involved a 2,691 sq ft unit on the 60th floor that was sold for $5 million ($1858 psf) in August 2022. That unit had been bought for $8.25 million ($3,066 psf) in December 2013, and the sale resulted in a record loss of $3.25 million or an annualised loss of 5.6% over eight years.

Based on a compilation of caveats, resale prices at Marina Bay Suites have fallen from about $2,700 psf in January 2010 to about $2,180 psf in January 2020. The average resale price has since slipped below the $2,000 psf threshold and is about $1,948 psf today.