When it comes to investing in a condo, securing proper financing is crucial. Luckily, Singapore provides various mortgage choices, but it is crucial to have knowledge about the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan an individual can obtain based on their income and current debt obligations. By understanding the TDSR and seeking guidance from financial advisors or mortgage brokers, investors can make informed decisions regarding their financing and prevent becoming over-leveraged. Condo investing requires careful consideration of financing options to ensure a successful investment journey.
The resale market has been buzzing with activity in the first month of 2021. According to the a tabulation of caveats by EdgeProp Singapore, the most profitable resale transaction during the period of Jan 14 to 28 took place at Palm Spring. The seller of a three-bedroom unit on the fourth floor made a profit of $3.19 million when it was sold for $4.4 million on Jan 20. The transaction translates to a whopping annualised profit of 6.8% over nearly 20 years, making it the most profitable resale transaction at Palm Spring to date. The 1,884 sq ft unit was bought for $1.21 million back in August 2005, which was equivalent to $642 psf. However, the unit was recently sold for $2,336 psf, reflecting a substantial increase in price over the past 20 years. Furthermore, the average transacted price at Palm Spring has also increased steadily over the past 20 years, from $973 psf in January 2005 to $2,342 psf in January 2021.Meanwhile, the second most profitable resale transaction during this period was at Orchard Bel Air, where a four-bedroom unit on the 12th floor was sold for $4.65 million. The seller made a profit of $3 million on the transaction, which translates to an annualised profit of 4.5% over nearly 24 years. However, the record for the most profitable transaction at Orchard Bel Air remains with the sale of a 6,512 sq ft penthouse unit in 2013 for $8.3 million, with an annualised profit of 8.5% over 7 years.On the other hand, the most unprofitable transaction during the period in review took place at Marina Bay Suites, where the seller of a 1,625 sq ft unit incurred a loss of $1.15 million when it was sold for $3.1 million on Jan 24. The unit had been purchased for $4.25 million back in May 2012, translating to an annualised loss of 27%. This is one of many loss-making transactions at Marina Bay Suites in recent months, with 14 consecutive deals resulting in losses ranging from $40,000 to $2.5 million. Furthermore, prices at Marina Bay Suites have been on the decline, with the average selling price falling from $2,502 psf in January 2015 to $1,921 psf as of January 2021. Despite this, other nearby 99-year leasehold condos such as The Sail @ Marina Bay and Marina Bay Residences command higher resale prices. Overall, the resale market has been active in the first month of 2021, with many profitable transactions and a few unprofitable ones at popular developments.