It Good Deal 12M 753 Sq Ft Rcr Condo Outdoor Jacuzzi
for sale and rent.
A recent transaction at freehold development Spottiswoode 18 has resulted in a loss of approximately $80,000 for the seller. This is the first unprofitable transaction at the development this year, out of a total of nine resale transactions. The seller had bought the 753-sq ft unit in February 2011 for $1,699 psf, but sold it this month for $1,593 psf.
According to data from EdgeProp LandLens, as of 31 May 2024, Spottiswoode 18 has seen a total of 25 unprofitable and 61 profitable transactions out of 90 resale and sub-sale transactions. The losses from the unprofitable transactions ranged from approximately $2,800 to $649,000, with the latest one falling on the lower end of the spectrum. The largest loss was for a one-bedroom unit on the 35th floor, which was sold in June 2020 for $1,433 psf, a significant drop from the seller’s purchase price of $2,159 psf in February 2011.
On the other hand, profits from the 61 profitable transactions ranged from approximately $11,000 to $243,000. The largest profit was for a two-bedroom unit on the 10th floor, which was sold in October last year for $2,191 psf after the seller bought it in February 2011 for $1,821 psf.
Using the analytics tool ‘Is it a Good Deal?’, it seems like the buyer of the unprofitable unit has secured a good bargain. The transacted price is below the average prices for Spottiswoode 18, District 2, and four nearby projects. Plus, the freehold tenure of Spottiswoode 18 and its proximity to two MRT stations are additional advantages.
Spottiswoode 18 is a well-located freehold development situated along Spottiswoode Park Road in District 2, within the Bukit Merah Planning Area. Completed in 2014, the development comprises 251 units of one and two-bedroom apartments ranging from 387 sq ft to 1,324 sq ft. Amenities within a 1km radius include Everton Park, Chinatown Complex, Tanjong Pagar Plaza, 100 AM, Cantonment Primary School, Pearl’s Hill City Park, Singapore General Hospital, and easy access to the Central Expressway and Ayer Rajah Expressway. While the nearest MRT station, Cantonment MRT Station (Circle Line), is not expected to be operational until 2026, currently, the nearest active station is Outram Park MRT Station, serving the East-West, North-East, and Thomson-East Coast Lines.
There may be a preference for indoor space over outdoor space among buyers as the unit that yielded the highest loss of approximately $649,000 has a lot of outdoor space. Furthermore, the unit with the highest profit of approximately $243,000 does not have an outdoor terrace. The units that achieved the second and third highest profits of approximately $188,000 and $166,000 share the same layout without an open terrace. It seems that the trend of preferring indoor space is evident.
Located in Woodlands, a desirable district renowned for its verdant surroundings and expanding amenities, is Norwood Grand – a prestigious condominium project developed by City Developments Limited. This prime location is highly appealing to families who prioritize educational opportunities for their children, thanks to its close proximity to a number of reputable educational institutions. It’s no wonder that Norwood Grand Condo has become the top choice for families looking for an ideal residential option in this area.
Looking at price growth, Spottiswoode 18 has achieved moderate growth compared to its counterparts in District 2 and the Bukit Merah Planning Area. From 2018 to this year, the average growth in resale prices for Spottiswoode 18 was 8.7%, compared to Spottiswoode Suites (9.5%) and Spottiswoode Residences (7%).
The average resale price for Spottiswoode 18 has consistently exceeded that of freehold condos in the Bukit Merah Planning Area but closely mirrors its counterparts in District 2. However, the average price growth for Spottiswoode 18 still lags behind its counterparts in District 2 and the Bukit Merah Planning Area. Since 2017, the average resale price growth for Spottiswoode 18 was 12.9%, compared to freehold condos in District 2 (19.8%) and the Bukit Merah Planning Area (29%).
It is notable that the average price for freehold condos in District 2 ($2,294 psf) is significantly higher than their counterparts islandwide ($1,826 psf). However, the average price growth for freehold condos islandwide is stronger at 22.8% since 2017 compared to District 2 (19.8%).
In conclusion, while Spottiswoode 18’s layout with open terraces may not appeal to some buyers, its freehold tenure and convenient location may still be attractive to smaller households. However, buyers should take note of its weaker price growth compared to its counterparts in District 2 and the Bukit Merah Planning Area.