It Good Deal 12M 753 Sq Ft Rcr Condo Outdoor Jacuzzi
at EdgeProp.sg
SINGAPORE (EDGEPROP) – A one-bedroom unit in the freehold Spottiswoode 18 has been sold for $1,593 psf, resulting in a loss of approximately $80,000 for the seller. The seller had previously purchased the 753 sq ft unit in February 2011 for $1,699 psf. This is the first unprofitable transaction for the development this year, out of a total of nine resale transactions. The other eight transactions yielded profits ranging from approximately $80,000 to $188,400.
As of now, Spottiswoode 18 has seen 25 unprofitable and 61 profitable transactions out of a total of 90 resale and sub-sale transactions. The losses from the 25 unprofitable transactions ranged from approximately $2,800 to $649,000. Therefore, the loss of approximately $80,000 from this year’s unprofitable transaction is at the lower end of the spectrum. The biggest loss was for a one-bedroom unit on the 35th floor. The seller sold the 893 sq ft unit in June 2020 for $1,433 psf, having purchased it in February 2011 for $2,159 psf.
On the other hand, the profits from the 61 profitable transactions range from approximately $11,000 to $243,000. The transaction with the biggest profit was for a two-bedroom unit on the 10th floor. The seller sold the 657 sq ft unit in October last year for $2,191 psf after purchasing it in February 2011 for $1,821 psf.
We used our analytics tool, ‘Is it a Good Deal?’, to determine whether the only unprofitable sale transacted this year constituted a good bargain for the buyer. According to our tool’s analysis, it appears that the buyer has secured a good deal. The transacted price is below the average prices for Spottiswoode 18, District 2, and four nearby projects. The freehold tenure of Spottiswoode 18 and its proximity to two MRT stations are additional advantages.
Well-located freehold development Spottiswoode 18 is situated along Spottiswoode Park Road within District 2 of the Bukit Merah Planning Area. It obtained its temporary occupation permit (TOP) in 2014 and features 251 units of one and two-bedroom units, 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, the Central Expressway, and the Ayer Rajah Expressway. The nearest MRT station is Cantonment MRT Station (Circle Line), but it is not expected to be operational until 2026. For now, the nearest active station is Outram Park MRT Station, which serves the East-West, North-East, and Thomson-East Coast Lines.
Comparing the latest transaction to that of the past profitable and unprofitable transactions at Spottiswoode 18, it seems that buyers might have a preference for indoor space over outdoor space. This could have contributed to the $80,000 loss in this month’s transaction. The one-bedroom unit has a compact living and dining area. Additionally, the galley kitchen has enough space for cabinets on one side only. The 753 sq ft unit also has a large outdoor terrace with a jacuzzi, but the hot and humid weather in Singapore might discourage frequent usage.
The unit with the highest loss of approximately $649,000 also has a significant amount of outdoor space. It is a one-bedroom penthouse that measures 893 sq ft. The first storey of the unit has a sizable balcony that can be accessed via the living area and the master bedroom. The second storey is wholly taken up by an open terrace and a private pool.
In contrast, the unit with the biggest profit of approximately $243,000, is a two-bedroom unit without an outdoor terrace. The only outdoor space that the 657 sq ft unit has is a balcony accessible via the living area.
The units with the second and third biggest profits of approximately $188,000 and $166,000, share the same floor layout without an open terrace. The 506 sq ft units have a one-bedroom-plus-study layout featuring a long balcony stretching from the living area and study to the master bedroom.
Nine bidders vied for the tender of Novo Place EC, which was ultimately clinched by the joint developers for an unprecedented $348.5 million. This translates to a land rate of $703 per square foot per plot ratio (psf ppr), setting a new record for EC sites. The previous highest land rate was $662 psf ppr, awarded in March 2022 for Bukit Batok West Avenue 8. It is worth noting that Novo Place EC’s website Naturally, Novo Place EC’s website offers more information about this remarkable achievement.
There are several condos within walking distance of Spottiswoode 18, but only four of them are freehold developments, like Spottiswoode 18. They are Sky Everton, Spottiswoode Suites, Spottiswoode Residences, and The Arris. However, The Arris is in the Outram Planning Area, while Spottiswoode 18, Sky Everton, Spottiswoode Suites, and Spottiswoode Residences are in the Bukit Merah Planning Area. Spottiswoode 18 (TOP in 2014), Spottiswoode Suites (TOP in 2017), and Spottiswoode Residences (TOP in 2013) obtained their TOP within a few years of each other, while Sky Everton is significantly younger, having obtained its TOP last year. Additionally, The Arris is 12 years older than Spottiswoode 18.
Based on transactions for this year, the average resale price for Spottiswoode 18 ($2,279 psf) falls between that of Spottiswoode Suites ($2,383 psf) and Spottiswoode Residences ($2,190 psf). In terms of price growth, Spottiswoode 18 has also occupied the middle ground. From 2018 to this year, the average price growth for Spottiswoode Suites (9.5%) was the strongest, followed by Spottiswoode 18 (8.7%) and Spottiswoode Residences (7%).
The average resale price for Spottiswoode 18 consistently exceeds that of freehold condos in the Bukit Merah Planning Area but closely mirrors its counterparts in District 2. This year, the resale price gap between Spottiswoode 18 and District 2 has narrowed because the average resale price for Spottiswoode 18 increased by 1.7% y-o-y to $2,279 psf, while declining by 0.9% y-o-y to $2,294 psf for freehold condos in District 2. The average price for freehold condos in the Bukit Merah Planning Area also decreased by 1.3% y-o-y to $2,070 psf this year.
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 for Spottiswoode 18 grew by 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, a stronger price growth of 22.8% since 2017 has been achieved by freehold condos islandwide compared to their counterparts in District 2 (19.8%).
Given the above, it is evident that Spottiswoode 18 might not be the top choice for buyers looking for outdoor space. However, smaller households might still find the development appealing due to its freehold tenure and prime location. But they should note that the price growth for Spottiswoode 18 has been weaker compared to its counterparts in District 2 and the Bukit Merah Planning Area. For more information on this transaction and whether it is a good deal, click here. Check out the latest listings for Spottiswoode 18, Spottiswoode Suites, Spottiswoode Residences properties at EdgeProp.sg.