In September, a four-bedroom unit on the 15th storey of Yong An Park was sold for $9.1 million ($2,650 psf), resulting in a profit of $6.55 million. The seller had purchased the 3,434-sq ft unit in April 2004 for $2.55 million ($743 psf).

We used our analytics tool, Is it a Good Deal?, to assess whether the buyer of the freehold condo unit in prime District 9 secured a good deal.

Lots of nearby amenities

Yong An Park is a freehold condo located along River Valley Road in prime District 9. There are numerous amenities within walking distance of the condo, including Great World MRT Station, Great World City, New Bahru, Zion Riverside Food Centre and the Singapore River (see Screenshot 1). The condo is also a short drive from Orchard Road and the CBD.

Read also: Is it a Good Deal?: $439,000 for a three-room flat near Holland Village

The main drawback of its location is that River Valley Primary School is the only primary school within a 1km radius (see Map 1). Outram Secondary School is also within a 1km radius of Yong An Park but the school will move to its new campus along Anchorvale Crescent in Sengkang next year.

However, if the distance is expanded to 2km, more schools fall within the radius, including Zhangde Primary School, Alexandra Primary School, Anglo-Chinese School (Junior), St. Margaret’s School (Primary), School of the Arts, Singapore, Gan Eng Seng School and Crescent Girls’ School.

Our tool also indicated that the transacted price of $2,650 psf for the subject unit is on par with the highest price for Yong An Park. It is also higher than the average price for the district (see Screenshot 2). This is despite Yong An Park being a 39-year-old development, as it obtained its temporary occupation permit (TOP) in 1986. However, its age could be mitigated by its freehold tenure.

Average resale price trending upwards

Despite its age, the average resale price of Yong An Park has increased by 24.3% since 2020 to $2,335 psf (see Chart 1). This could be due to continued demand for the condo, given that four units have changed hands each year since 2023.

The average resale price for Yong An Park ($2,355 psf) is higher than that for freehold condos aged 31 to 40 years in District 9 ($2,289 psf) and islandwide ($1,842 psf) (see Chart 2).

Notably, Yong An Park’s price growth of 24.3% since 2020 outpaced that for its peers in District 9 (14.2%) but lagged behind that for similar condos islandwide (35.3%).

Read also: Resale four-bedder at Yong An Park reaps $6.55 mil profit

Record-high profit of $8.7 million

Since 2020, Yong An Park has chalked up 23 profitable transactions, with profits ranging from approximately $400,000 to $8.7 million. Only five transactions have yielded profits above $6 million (see Table 1), with the subject unit ranking fourth. Thus far, no unprofitable transactions have been recorded for the condo during the same period.

The record-high profit of $8.7 million came from a transaction that took place in September 2021, when the seller sold a 6,577-sq ft unit for $12.5 million ($1,901 psf). The seller had bought the unit in May 2000 for $3.8 million ($578 psf).

Notably, both the subject unit and the unit that yielded the record-high profit were held by their sellers for at least 20 years. This benefitted the sellers because the average resale price of Yong An Park has shown significant growth over the years. In 2000, the average resale price of Yong An Park was $856 psf, before increasing by 175.1% to $2,335 psf this year (see Chart 1).

Profit for subject unit is this year’s record-high

So far this year, only four resale transactions have taken place for Yong An Park. However, all four transactions have yielded profits for their sellers, with the subject unit achieving this year’s record-high (see Table 2).

In comparison, this year’s lowest profit of $1.23 million came from the sale of a 3,111-sq ft unit for $7.28 million ($2,340 psf) in March. The seller had bought the unit for $6.05 million ($1,945 psf) in November 2018.

Notably, the same unit had been involved in two other profitable transactions that yielded smaller profits. The previous seller sold the unit in November 2018 for $6.05 million ($1,945 psf). They had bought it in October 2016 for $5.2 million ($1,672 psf) (see Table 3). Based on the purchase and sale prices only, this sale transaction resulted in a profit of $850,000.

Read also: Yong An Park sets record psf-price high of $2,650 psf

Given the purchase date in October 2016, sellers must hold their property for more than four years before Seller’s Stamp Duty (SSD) is no longer applicable. As the seller had held the property for approximately two years, they would have had to pay SSD, which would have lessened the amount of profit they could pocket eventually.

An earlier owner sold the same unit for $5.2 million ($1,672 psf) in October 2016 after purchasing it for $1.93 million ($620 psf) in February 1999, resulting in a profit of $3.27 million.

Higher price than nearest neighbours

There are 50 completed condos, representing approximately 7,400 units, within a 500m radius of Yong An Park. Of the 50 condos, 42 have a freehold tenure. There are also two uncompleted condos within the same distance, namely Promenade Peak and River Green.

Among the completed freehold neighbours, The Morningside and The Regalia would be considered more comparable to Yong An Park because of their proximity. All three developments are located adjacent to each other (see Map 2).

However, The Morningside and The Regalia obtained their TOP in 1992 and 1993, respectively, making them at least seven years younger than Yong An Park. The Morningside (79 units) and The Regalia (116 units) are also smaller developments compared to Yong An Park (288 units).

Despite being older than the other two developments, Yong An Park ($2,355 psf) recorded a higher average resale price compared to The Morningside ($2,171 psf) and The Regalia ($2,296 psf) (see Chart 3).

Among the three condos, The Regalia (39.7%) recorded the highest price growth since 2020, followed by Yong An Park (24.3%) and The Morningside (21.4%).

Conclusion

The recent profit of $6.55 million for a unit in Yong An Park is on the upper end of the profit spectrum for the condo, despite being significantly below the record-high of $8.7 million.

The profit of $6.55 million is the fourth-highest achieved by Yong An Park and the highest thus far this year. At the time of writing, four transactions have been recorded for the condo, and all have generated million-dollar profits for their sellers. This is despite the condo being 39 years old. The lease decay for the condo could have been mitigated by its freehold tenure.

Additionally, Yong An Park ($2,355 psf) reported an average resale price higher than that for freehold condos of similar age in District 9 ($2,289 psf) and islandwide ($1,842 psf). Yong An Park also has a higher average resale price compared to nearby The Morningside ($2,171 psf) and The Regalia ($2,296 psf).

To learn more about this transaction, and whether it is a good deal, click here.

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