Top 10 Resale Condos in August 2022: OCR Condo Project in Simei Pulled in More Than $660,000 in Gains

Supported by healthy housing demand, resale condos in the suburbs and city fringe have garnered relatively decent gains in August 2022, 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 August 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 five transactions during the month are excluded from the study.

Suburban condo projects dominate Top 10 gainers list
By ranking the average profit, the top 10 projects in August comprised mostly Outside Central Region (OCR) projects. The top most profitable project, Double Bay Residences, a condominium project in Simei, recorded six resale transactions in the month, achieving gains of more than $660,000 on average for each transaction. It was followed by The Minton in Serangoon, also in the OCR, which had an average profit of more than $420,000 per transaction.

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

Source: PropNex Research, URA Realis

^projects with fewer than 5 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.
#Annualized 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

Resale prices and volume of resale transactions have been tempered in the month of August, owing to the Hungry Ghost Month, which typically has buyers holding off on property viewings and purchases. Consequently, it was observed that average gross profits gained for resale transactions have become muted compared to previous months. For instance, D’leedon, a project which has been featured on the top 10 list for July 2022, saw average profits shrink to $170,000 in August, compared to the $640,000 in average gains in July.

Nine out of the top 10 projects were built between 2012 and 2020. Unsurprisingly, most of the projects that made the top 10 list were developments that have desirable locational attributes which contribute to price resiliency, such as being located on the city fringe or close to an MRT station (D’Leedon, Double Bay Residences, Coco Palms, Sky Vue, Queens Peak, Alex Residences, Watertown).

Here are details about the top 10 projects in August 2022:

DOUBLE BAY RESIDENCES

Details
Location: Simei Street 4
Postal District: 18
Tenure: 99-year leasehold
Nearest MRT: Simei (300 metres)
Year of Completion: 2012

Summary
Double Bay Residence is a leasehold condominium development in Simei Street 4 in District 18. The project is developed by UOL Group and comprises a total of 646 units. It located just 5 minutes’ walk to the Simei MRT station on the East-West Line. Commuters can reach the Changi Airport and Expo within a few short stops, while the Central Business District is about 20 minutes away via MRT. Within the development, residents can enjoy a wide range of facilities including a basketball court, club house, lounge, Jacuzzi, lap pool, library, gaming room, karaoke and fitness corner.