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It is crucial for international investors to have a clear understanding of the regulations and limitations pertaining to property ownership in Singapore. As compared to landed properties, foreign buyers have more leniency in purchasing condos as there are fewer restrictions. However, they are still required to pay the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their initial property acquisition. Despite this additional expense, the reliable stability and promising growth prospects of the Singapore real estate market remain alluring to foreign investments. Moreover, the market is constantly expanding with new condo launches, providing even more opportunities for interested buyers.
In the last week of February, a two-bedroom unit at The Esta set a new record for private condos with a price of $2,377 psf. This freehold development achieved its new high when a 1,001 sq ft unit sold for $2.38 million on Feb 26. The sellers of the seventh-floor unit originally bought it in March 2021 for about $1.83 million, or $1,833 psf, making a hefty profit of around $545,000.
This transaction surpasses the previous record set at The Esta in January last year, when a three-bedroom unit on the 13th floor sold for approximately $3.2 million, or $2,317 psf. The average resale price at The Esta has also been steadily increasing over the past three years, with 10 transactions in 2022 at an average psf-price of $2,012. The following year, the average price rose to $2,156 across nine resale deals, and last year, nine units were resold at an average of $2,248 psf, reflecting an 11.7% increase in average resale prices since 2022.
By absolute price, the most expensive unit sold at The Esta was a five-bedroom apartment on the 21st floor, which changed hands for $6.25 million, or $1,798 psf, in October 2021.
The Esta is a 400-unit development spread across five residential blocks along Amber Gardens. Completed in 2008, this District 15 condo offers a range of two- to four-bedroom apartments, as well as penthouses. It is within walking distance of Tanjong Katong MRT Station and is near popular amenities like Katong Shopping Centre and Katong V.
The second-highest new psf-prices achieved during the review period were at the 99-year leasehold condo D’Leedon, where a 1,421 sq ft, three-bedroom unit on the 29th floor sold for $3.25 million on Feb 25, setting a new psf-price record of $2,287. The following day, a smaller three-bedroom unit also changed hands for $3.04 million, or $2,222 psf, slightly surpassing the previous record of $2,180 psf set in October 2021.
Since the start of the year, 11 units have been sold at D’Leedon, with an average price of $2,065 psf. The lowest psf-price recorded this year was for a 743 sq ft, one-bedroom apartment on the 10th floor, which sold for $1.41 million, or $1,898 psf, on Feb 13.
Located in District 10 along Leedon Heights, D’Leedon is a 1,703-unit development offering a mix of one- to four-bedroom units and penthouses. Completed in 2014, it is near amenities such as Farrer Road MRT Station, Empress Road Market and Food Centre.
Rounding out the top three, Citylights achieved a new psf-price high on Feb 27 when an 893 sq ft, two-bedroom unit on the 26th floor sold for $1.98 million, or $2,216 psf. This surpassed the previous record of $2,122 psf set in December last year, when another two-bedroom unit on the 16th floor sold for $1.85 million. The sellers of the 26th-floor unit originally purchased it for $1.44 million, or $1,610 psf, in April 2019, earning a profit of around $542,000.
Completed in 2007, Citylights is a 600-unit, 99-year leasehold condo located in Kallang, District 8. It features one- to four-bedroom units and is just a one-minute walk from Lavender MRT Station, with easy access to dining and retail options.
There were no new psf-price lows recorded during the period in review.