A very common question from property buyers out there is what are the condo developments that can generate 6-figure profits in a very short time.

How short? Between 3 years to 4 years.

The Seller Stamp Duty (SSD) period is a 3 years period. After the 3rd year, you can let go of your property without paying this additional tax.

So what are the factors that we have to consider before entering into a private property purchase that has the potential to make significant capital gains?

I don’t have the ability to predict the future.

So the best I can do is reverse-engineer the factors that led to some condo owners getting profitable results from their purchase.

Let’s explore:

#1: Seaside Residences – 50 Profitable Transactions

Seaside Residences was launched in 2017. It achieved TOP in April 2021.

So this is a brand new condo with 841 units that is located in the Marine Parade area.

If you looked at the map below – you will noticed that the surrounding condos are:

  • Villa Marina
  • Laguna Park
  • Mandarin Gardens

These are relatively old condos where the developments are more than 27 years old.

While their sizes might be bigger, they do not have the “shiny brand new” feeling that Seaside Residences is able to evoke.

And I think this is the main reason why Seaside Residences is such an attractive choice in this area.

The fact that it is so brand new – it is very attractive to those who wish to move in immediately.

These buyers are willing to pay that additional “premium” for the privilege of being able to own a brand new unit here.

The early buyers of Seaside Residences benefited and this is why the original owners there are sitting on comfortable 6-figure paper gains.

#2: Clement Canopy – 38 Profitable Transactions

Clementi Canopy was launched in 2017. It was completed in 2020.

The development added another 505 units in the area.

Before that, there was a total of 1601 units from 4 various developments.

Within this area, the supply of condo units are relatively limited.

Compare that to Treasure at Tampines – a huge development in the east that has more than 2200 units by itself.

So there is a strong demand for homes within this area – especially with the proximity to various schools and educational institutions.

There are more upcoming new launches that is scheduled for completion within the next few years:

  • Parc Clematis (1468 units)
  • Clavon (640 units)

Supply will continue to increase.

But in the meantime, especially with the tight property market of 2022 – Clement Canopy is looking very attractive to buyers.

The other alternative is Trilinq – which is also relatively brand new as it was completed in 2017.

So the main reason for Clement Canopy’s profitable transactions – is because of the limited supply of private condo units available within the Clementi area.

#3: Grandeur Park Residences – 54 Profitable Transactions

Grandeur Park Residences was launched in 2017 and was completed in 2021.

In the Tanah Merah area, Grandeur Park Residences added another 720 units in an area where there is an abundance of private condo units.

How abundant? There are the various condos within the Tanah Merah area:

  • The Tanamera (1994, 288 units)
  • East Meadows (2002, 482 units)
  • Casa Merah (2009, 556 units)
  • Optima @ Tanah Merah (2012, 297 units)
  • Urban Vista (2016, 582 units)
  • The Glades (2017, 726 units)
  • Grandeur Park Residences (2021, 720 units)

This presents a very different situation when compared to first 2 examples of Seaside Residences and Clement Canopy.

With the wide variety of choices available, this means it will be difficult for owners of Grandeur Park Residences to attract buyers who are willing to pay right?

So how did the owners of Grandeur Park Residences (GPR) managed to clock up such 6-figure profits – even as high as $700K?

The main reason – the reasonable price point when GPR was launched especially when compared to The Glades which was launched in the same year.

Buyers in 2017 who purchased Grandeur Park Residences got in at an attractive entry price – even lower than the Glades.

What does this mean?

This means that these GPR owners can let go of their units at prices that is lower. How low?

Lower than the prices the Glades owners are willing to sell at.

The owners of the Glades will be at a slight disadvantage as they can’t sell their units at prices lower than GPR.

Entry price becomes a very important factor to consider – especially when all the other factors like supply and location are against you.

Conclusion

Don’t underestimate the power of shiny new things.

This includes condos. Brand new condos are attractive even though the prices are much more higher than those older resale condos.

Why are these buyers willing to pay so much to take it off the hands from the original owners?

The main reason from my observations and experience:

They are planning to stay there and it is for their own use.

So they are willing to pay that larger quantum for the comfort of their family’s stay.

These developments are in ready-to-move-in conditions and that makes them even more psychologically ready to pay more.

With 2021 being a market where the property supply is tight especially with construction delays – it comes to no surprise about how much buyers are willing to pay for the privilege of being able to move in fast.

This is especially so if they are upgrading from a small unit to a bigger unit to accommodate the demands of working from home.

If you have further questions on your own property choices – feel free to drop me a message via whatsapp: https://wa.me/6593667909/.

All our consultations are no-obligation.