Four Seasons Park Unit Nearly Doubles in Value in Under Four Years, Generating S$3.8

Four Seasons Park Unit Nearly Doubles in Value in Under Four Years, Generating S$3.8 Million Profit in Q3 Resale Market

Share of loss-making resale transactions continues to decline, driven by resilient property prices and strong demand

October 23, 2024

CONDOsingapore.com

A 2,260-square-foot (sq ft) unit at Four Seasons Park was sold for S$7.8 million in August, netting the seller a substantial S$3.8 million profit and marking it as the most lucrative resale transaction by value in the third quarter of 2024.

Located on the 20th floor of the freehold luxury condominium in prime District 10—just a short distance from Orchard Road’s shopping district—the unit was originally purchased for S$4 million, or S$1,770 per square foot (psf), in September 2020. This data, provided by real estate consultancy Cushman & Wakefield, highlights a remarkable appreciation in value.

The unit was sold at S$3,451 psf in August, setting a new psf benchmark for the Four Seasons Park development, according to Wong Xian Yang, head of research at Cushman & Wakefield. With a holding period of just under four years, the seller achieved an annualized profit of 18.5%, with a gross gain of approximately 95%. This far exceeds the 34% rise in Singapore’s overall private residential price index during the same period.

Four of the top five most profitable resale transactions by value in Q3 involved freehold properties across various regions: three from the Core Central Region (CCR), one from the Rest of Central Region (RCR), and one from the Outside Central Region (OCR). Wong noted that freehold properties typically command a premium in the market.

In terms of percentage gains, executive condominiums (ECs) continued to dominate, maintaining a trend that began in Q1 2023. Profits for EC transactions ranged between 105% and 110%, with top-performing units held for an average of nine years before being sold at significantly higher prices.

The standout EC transaction was a 915 sq ft unit at Twin Waterfalls EC, a 99-year leasehold development in Punggol (District 19). Sold for S$1.3 million (S$1,454 psf) in August, the unit fetched 110% more than its original price of S$632,100 (S$691 psf) in July 2012. Over a holding period of more than 12 years, this translated to an annualized profit of 6.3%.

Excluding ECs, three of the top five percentage gainers were OCR units, with one each from the RCR and CCR. The most profitable deal by percentage was the Four Seasons Park unit in the CCR.

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On the flip side, the biggest loss in Q3, both in terms of quantum and percentage, was a 2,067 sq ft unit at Marina Bay Suites, a 99-year leasehold condo in District 1. Sold for S$3.5 million or S$1,694 psf in July, the unit represented a 34% loss compared to its original price of S$5.3 million (S$2,553 psf) in October 2012. Over a holding period of 11.8 years, this equated to annualized losses of 3.4%.

Wong observed that all the biggest loss-making transactions in Q3 were located in the CCR and involved properties purchased at different stages of the market cycle. Nearly all were 99-year leasehold units, with one exception.

Cushman & Wakefield’s analysis examined caveats for non-landed private homes transacted in Q3 2024 with prior purchase histories between January 2012 and September 2024. The study excluded transaction costs and taxes, such as buyer and seller stamp duties.

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Prime CCR properties accounted for 54% of loss-making deals in Q3, based on caveat data for both landed and non-landed private homes. The RCR and OCR represented 24% and 23% of such deals, respectively. Despite the CCR’s higher share of losses, Wong emphasized that 86% of all sales in the region were profitable.

The proportion of loss-making deals across the landed and non-landed sectors also declined slightly to 2.5% in Q3, down from 2.6% in Q2 and 2.7% in Q1. Wong attributed this trend to steady private residential prices, which are projected to grow by 1% to 4% for the full year of 2024. Factors such as strong demand for private housing upgrades, low unemployment rates, and robust household finances have supported this resilience.

Looking ahead, Wong anticipates that buyer affordability may improve as interest rates gradually ease, while sellers’ holding power is expected to remain strong due to higher replacement costs. “Barring new cooling measures or unforeseen economic shocks, the overall level of loss-making deals is likely to stay low,” he concluded.