Unit at Fontana Heights sold for $3.68 mil profit
The most profitable deal during the week of Oct 27 to Nov 3 was from the sale of a 3,466 sq ft unit at Fontana Heights in District 10. Purchased for $2.65 million ($765 psf) in March 2006, the four-bedroom unit was sold for $6.33 million ($1,826 psf) on Oct 29. The seller thus earned $3.68 million, or a profit of 139%, on the sale. This translates to an annualised profit of 6.1% over 14½ years.
Fontana Heights is a freehold condominium located on Mount Sinai Rise. The 51-unit condominium was completed in 1985 and comprises three- and four-bedroom units of 3,000 sq ft to 4,607 sq ft.
The most recent resale transaction at Fontana Heights is also
the most profitable deal recorded so far at the development. Previously, the record was for the sale of a 3,466 sq ft unit, which earned the seller $1.6 million, or a profit of 37%. That four-bedroom unit was purchased for $4.3 million ($1,241 psf) in May 2007 and sold for $5.89 million ($1,702 psf) in August 2019.
Over the past three years, Fontana Heights has recorded three profitable resale transactions including the two sales. The third transaction was the sale of a 3,455 sq ft, four-bedroom unit for $4.89 million ($1,418 psf) in March 2018. The unit was purchased for $3.22 million ($932 psf) in December 2006, earning the seller a profit of $1.68 million.
The second most profitable sale during the week in review occurred at Rajah Towers in District 12. A 5,253 sq ft unit was sold for $4.5 million ($857 psf) on Oct 27. The unit had been purchased for about $961,000 ($183 psf) in September 2005. Thus, the seller walked away from the sale with a profit of $3.54 million (369%), which translates to an annualised profit of 10.8% over 15 years.
Located on Jalan Rajah in Whampoa, Rajah Towers is a 98unit condominium that was completed in 1984. It comprises units ranging from 1,991 sq ft to 5,253 sq ft.
The latest transaction at Rajah Towers is also the most profitable resale at the freehold development, surpassing the previous record set by the sale of a 2,207 sq ft unit, which earned the
seller a profit of $980,000. The unit was sold for $2.29 million ($1.042 psf) on Oct 13, having been purchased for $1.32 million ($598 psf) in June 2009.
Meanwhile, the top loss during the week in review was for the sale of a 2,088 sq ft unit at Turquoise, a 99-year leasehold condominium in Sentosa Cove. The three-bedroom apartment was sold for $3.18 million ($1,523 psf) on Oct 29, but had been bought for $5.45 million ($2,613 psf) in October 2007. This resulted in a loss of $2.27 million (41.7%), or an annualised loss of 4.1% over 13 years.
Located on Sentosa Island’s Cove Drive, Turquoise is an upmarket residential enclave completed in 2007 by Ho Bee Land. The development is located beside the 99-year bungalows along Pearl Island and is close to other high-rise condominiums such as Cape Royale and Seascape. The 91-unit Turquoise comprises three- and four-bedroom units ranging from 2,088 sq ft to 2,777 sq ft, as well as penthouses of 3,724 sq ft to 3,746 sq ft.
So far, there have been three other unprofitable resale transactions at Turquoise. The most recent was the sale of a 2,433 sq ft unit that fetched $3.4 million ($1,398 psf) on Sept 18, a loss of $300,000 for the seller. Another 2,088 sq ft unit was sold for $2.8 million ($1,341 psf) in February this year. The seller purchased the unit for $5.43 million ($2,599 psf), thus making a loss of $2.62 million.
voir. “We want to emulate the feeling of living next to a nature reserve at the edge of the city,” says SSLE Development’s Chew. “It’s almost like living next to Central Park in New York City, Hyde Park in London, or Lumphini Park in Bangkok.”
As it is the lone tower perched on an elevation on Pearl’s Hill, “every unit will have a view”, says ZACD’s Sim. She likens The Landmark to Mid-Levels in Hong Kong and hopes this similarity will be a draw for Hong Kong buyers.
Furthermore, The Landmark is right at the border of the CBD and Robertson Quay, as well as near both Chinatown and Outram MRT interchange stations. The Landmark is near two major growth areas: the upcoming Singapore General Hospital (SGH) Campus, which will be Singapore’s largest medical campus when completed, and the Greater Southern Waterfront, a future urban area offering waterfront living, lifestyle amenities and proximity to parks, about six times the size of Marina Bay.
As such, Sim expects The Landmark to appeal to both owner-occupiers and investors. “It’s both an aspirational and a prudent buy,” she says.
The public preview of the project, which had been scheduled for earlier this year, will now take place on Nov 14. While the Covid-19 “circuit breaker” certainly played a part, another source of delay was the complexity of amalgamating three neighbouring remnant state land sites with the former Landmark Tower plot, says SSLE’s Chew. This having been achieved, brings the total site area of The Landmark to 72,118 sq ft, the equivalent of 1.3 football fields. “After amalgamation, the total land area was increased by about 1,000 sq m, and there will be a longer frontage,” Chew adds.
According to property agents, prices at The Landmark are likely to start from just below $1 million for a one-bedder, upward of $1.2 million for a two-bedder and from $2.3 million for a three-bedder. The appointed marketing agencies are PropNex, ERA Realty Network, Huttons Asia and SLP International.
Border of the CBD, amenities
“The Landmark has many positive attributes,” says Ismail Gafoor, CEO of PropNex Realty. “First and foremost is the huge park surrounding it – nature within a city environment is a rarity and a plus point.” Beyond the park, there are many other amenities nearby, such as the
Sheng Siong supermarket which is within walking distance, and River Valley Primary School, a popular school, is within 1km.
Even though The Landmark is on the city fringe, it is right at the border of the Core Central Region. “This gives it a positive rental advantage,” notes Gafoor. According to research by PropNex, one-bedroom apartments and condominiums in the vicinity are already commanding rental rates of at least $3,000 a month. Based on the indicative price of just below $1 million for a one-bedroom unit at The landmark, Gafoor reckons that rental yields for future investors will be “very attractive”, especially if the low-interest-rate environment persists.
Gafoor reckons the units will be attractively priced, with two-bedroom units from 678 sq ft priced above $1.2 million, prices could start from below $2,000 psf. Hence, he estimates the average price for The Landmark could be in the “$2,000 to $2,200 psf range”.
Given the unit types — from one- to three-bedroom apartments — Gafoor sees The Landmark appealing not just to investors but to upgraders, young couples or families who want the convenience of the amenities as well as two MRT interchange stations nearby, Outram and
Chinatown.
The Landmark is also within walking distance of People’s Park Complex, Chinatown Point and Robertson Quay, points out Lee Sze Teck, director of research at Huttons Asia. “City fringe projects that are close to the CBD sit in a sweet spot,” he adds. “They are near places of work, yet the amenities in the vicinity are available seven days a week compared to the CBD. At the same time, its central location makes travelling to the rest of the island very convenient.”
The location also means that units at The Landmark will command views of the Singapore River, the city and the sea towards the south, notes Huttons’ Lee.
With the hilltop behind it, the reservoir at the Pearl’s Hill City Park in front of it, and the Singapore River nearby, “these attributes translate to good fengshui for The Landmark”, says Nicholas Mak, head of research for ERA Realty. “This is likely to appeal to those from Hong Kong and China,” he adds.
Not the usual year-end lull
Last month, Singapore and Hong Kong agreed to establish a two-way “Air Travel Bubble”, which allows travel within both cities without quarantine. Hence, it is an opportunity for those from Hong Kong who want to explore investment opportunities in Singapore, adds Mak.
“Homebuyers are going to be spoilt for choice,” Mak says. “And with travel restrictions in place, there may not be the usual lull in the November-December school holiday period. Developers are likely to continue launching projects until at least the second week of December. Even if people choose to spend their $100 tourism vouchers during that time, they are still vacationing in Singapore.”
MCC’s Tan sees Singapore’s residential market becoming increasingly attractive to global investors given the ongoing US-China trade war and the way Singapore’s government has been handling the Covid-19 crisis. “Chinese tech companies are now entering Singapore’s market,” he says. “I believe more [tech companies] from the US and Europe will follow. In terms of geographical location, Singapore is neutral, it’s clean and relatively affordable.”
ZACD’s Sim adds: “In the last 12 months, ZACD Group has seen a huge increase in family offices who are making Singapore their headquarters.”
Whether markets are up or down, Sim says the product is very important. “We believe The Landmark is able to harness interest from various groups of property buyers, given its location and nearby amenities.”
MCC’s Tan concurs. “Landmark Tower was an iconic project that old-timers will remember,” he says. The redeveloped project, The Landmark, will also have unbeatable views, and as a contractor-developer, we have the ability to control construction costs to provide quality with competitive pricing.”