Bukit Panjang Condo Project Booked Gains Of More Than $630,000 On Average In December

A suburban Bukit Panjang condo project – Tree House – chalked up average resale gains of more than $630,000. In December, several resale condos in the suburbs and city fringe have garnered relatively decent profits amid steady demand for homes, based on caveats analysed by PropNex Research.

First, some details about the methodology which entails a comparison of sales caveats. The gains garnered for the units were derived by matching the condo resale transactions in December with their previous purchase prices according to caveats lodged. The average profit was subsequently computed on a project basis. To minimise sampling errors, resale condominium projects that posted fewer than four transactions during the month are excluded from the study.

Suburban and fringe condo projects dominate Top 10 gainers list
The volume of resale transactions continued to ease in December, with fewer than 600 resale condos being transacted during the month owing to seasonality, when the market activity slows amid the year-end festivities. In December, the top 10 most profitable projects had average profits ranging from $59,000 to nearly $640,000

By ranking the average profit, the top 10 projects in December comprised mostly Outside Central Region (OCR) and Rest of Central Region (RCR) projects. Only one project in the Core Central Region (CCR) made the top 10 rankings, D’Leedon, a condominium development in Bukit Timah, recorded four resale transactions in the month, achieving gains of about $370,000 on average for each transaction.

Top 10 Resale Condo projects^ in terms of average gross profit*

Source: PropNex Research, URA Realis

^projects with fewer than 4 transactions in the month are excluded from this analysis
*Gains are derived from the resale transaction for each unit against the unit’s last caveated transaction; the average profit is determined on the profits of all resale transactions in the development which occurred during the month. The profit reflected is gross – it has not accounted for the applicable seller’s stamp duties, interest payable, taxes and other relevant divestment costs.
#Annualised Gains is the compounded annual rate of return which shows the rate of return over the time period between the point of resale and the property’s last caveated transaction, expressed in annual percentage terms. The formula for determining this is simply: [(current resale price) / (purchase price)] time period in years-1
Analysis was done based on available data from URA Realis

Most of the projects that made the top 10 list were developments that have desirable locational or physical attributes, such as being in the city fringe (Tre Residences, D’Leedon, Reflections at Keppel Bay) or close to an MRT station (Bartley Residences, Castle Green, My Manhattan).

Here are some details about the top 10 projects in December 2022:

TREE HOUSE

Details
Location: Chestnut Avenue
Postal District: 23
Tenure: 99-year leasehold
Nearest MRT: Beauty World (320 metres)
Year of Completion: 2013

Summary
Tree House is a condominium project located along Chestnut Avenue in District 23. The project is situated near the Dairy Farm Nature Reserve, Bukit Panjang Nature Park, and a stone’s throw from the commercial amenities in Hillview. The 24-storey apartment buildings comprise a total of 429 units, with unit types ranging from 2-, 3- to 4-bedroom apartments. The project was constructed by renowned housing developers – CDL and Hong Leong Group - and was completed in 2013.