Seller of three-bedder at Avalon reaps $1.84 mil profit

/ EdgeProp Singapore |

August 3, 2023 4:54 PM SGT

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INGAPORE (EDGEPROP) - The sale of a three-bedroom apartment at Avalon was the most profitable condo resale transaction during the week of July 18 to 25, based on caveats lodged with URA. The 1,765 sq ft unit on the third floor changed hands for $4.3 million ($2,436 psf) on July 19. It had been purchased by the seller in April 2016 for $2.46 million ($1,394 psf), which means they raked in a profit of $1.84 million. This works out to a capital gain of 75% over a holding period of more than seven years.

This is the most profitable resale transaction that has taken place at the development to date. It surpasses the previous record set in January 2022, when a 1,765 sq ft unit on the second floor fetched $3.39 million ($1,920 psf). The seller had purchased the unit for $1.6 million ($906 psf) in October 2005, hence they made a gain of $1.79 million on the transaction.

The transaction on July 19 also marks a new psf-price high for the development and the first time a unit at Avalon has crossed the $2,400 psf threshold. It beats the previous high of $2,338 psf set in November 2022, when a 1,668 sq ft unit changed hands for $3.9 million.

Read also: Ultra-luxury District 10 condos reap sky-high profits

The 1,765 sq ft unit at Avalon was sold for $4.3 million ($2,436 psf) on July 19 (Picture: Samuel Isaac Chua/The Edge Singapore)

Avalon is a development by CapitaLand which was completed in 1999. It has 82 residences housed in two 10-storey blocks. Typical units comprise two-, three- and four-bedders between 958 and 2,292 sq ft. There are also four penthouse units between 4,122 and 5,220 sq ft.

The Petals saw the second most profitable transaction during the week in review. A four-bedroom duplex penthouse measuring 4,402 sq ft at the development was sold for $4.19 million ($951 psf) on July 18. It had been purchased for $2.7 million ($613 psf) in July 2020. Hence, the seller made a profit of $1.49 million or 55%, after holding the unit for three years.

This is the second-highest gain ever raked in by a seller of a unit at The Petals. The most profitable transaction recorded at the condo was the sale of the same unit in December 2011. It was sold then for $3.15 million ($716 psf). The seller at the time, who had purchased the penthouse from the developer for $1.18 million ($268 psf) in August 2005, clocked a profit of $1.97 million.

A 4,402 sq ft penthouse at The Petals fetched $4.19 million ($951 psf) on July 18, netting the seller a $1.49 million gain (Picture: Samuel Isaac Chua/The Edge Singapore)

The Petals is a freehold condo completed in 2002 by Frasers Property. Located on Hillview Avenue, close to the Bukit Batok residential estate in District 23, the development consists of six 10-storey blocks. There are 270 apartments, made up of two-, three- and four-bedders between 1,023 and 4,402 sq ft.

Meanwhile, the most unprofitable transaction during the week in review occurred at Devonshire Residences. A 506 sq ft, one-bedroom unit on the 18th floor changed hands for $1.12 million ($2,214 psf) on July 20. The seller bought the unit in May 2011 from the developer for $1.31 million ($2,593 psf). As such, they incurred a loss of $191,600 (15%) across a holding period of over 12 years.

There has been only one other resale transaction recorded at Devonshire Residences to date this year, which also occurred below the unit’s purchase price. An 807 sq ft unit on the 23rd floor was sold for $1.42 million ($1,755 psf) on March 13. It was acquired by the seller as a new unit in April 2011 for $1.64 million ($2,035 psf). Thus, the seller made a loss of roughly $220,000 on the sale.

The seller of a 506 sq ft unit at Devonshire Residences (centre) made a loss of $191,600 when it fetched $1.12 million on July 20 (Pixcture: Samuel Isaac Chua/The Edge Singapore)

Devonshire Residences is a freehold development by Oxley Holdings which was completed in 2015. The 25-storey development has 85 units comprising only one-bedroom apartments ranging from 495 to 829 sq ft. There are also one-bedroom penthouse units that each come with a roof terrace. The units range from 818 to 1,055 sq ft.