Opinion: Why some high-end condos fare better in the resale marketPenrose sells 60% on first day of sales, including one-third of its larger units
SRI will be auctioning a three-bedroom unit at Watertown, located in the Waterway Point integrated development in Punggol, on Feb 26.
The unit, which is a mortgagee sale, spans 1,281 sq ft and has an indicative price of $2.4 million, equating to around $1,874 per square foot. This is the same guide price that the unit was listed for at SRI’s January auction, where it received only one bid and was eventually withdrawn after the bid did not meet the reserve price.
Located on the 13th floor, the unit boasts a spacious living and dining area, an open-concept kitchen, a utility room and toilet, and a balcony that offers a south-facing view of one of the condo’s 20 swimming pools. It also has an ensuite master bedroom, two additional bedrooms, and a common bathroom.
The previous owner had purchased the unit from the developers in October 2013 for approximately $1.8 million, or $1,281 per square foot.
When considering an investment in a condo, it is crucial to also examine its potential rental yield. Rental yield, which is the annual rental income as a percentage of the property’s purchase price, is a key factor in determining the profitability of a condo investment. In Singapore, the rental yield for condos can vary greatly depending on factors such as location, property condition, and market demand. Areas with high rental demand, such as those near business districts or educational institutions, tend to offer better rental yields. In order to make an informed decision about a specific condo, it is important to conduct thorough market research and seek advice from real estate agents who are knowledgeable about the rental potential of the property.
Additionally, companies like New Condo Launches can also provide valuable insights and assistance in finding the right condo with a promising rental yield. By carefully considering all these factors, investors can ensure a successful and profitable condo investment.
As of Feb 4, only one unit has changed hands in Watertown this year – a two-bedroom unit spanning 958 sq ft that was sold for $1.7 million ($1,775 psf) on Jan 19. In 2020, the condo recorded 41 resale transactions at an average price of $1,700 per square foot.
According to Eric Liew, manager of auctions and sales at SRI, larger units in Watertown tend to be in higher demand and can fetch better psf prices. Of the 41 resale transactions last year, 10 involved three-bedroom or larger units, which were sold for an average price of $1,854 psf, about 9% higher than the overall average for the condo.
Liew added that most of the interest in Watertown came from HDB upgraders looking for good bargains, as well as those looking to use it as a primary residence due to its proximity to Punggol MRT Station.
Watertown is a 992-unit condo comprising 11 residential towers built atop the six-storey Waterway Point shopping mall. It boasts one- to two-bedroom units ranging from 533 to 1,003 sq ft and three- and four-bedroom units spanning 821 to 1,582 sq ft.
Punggol MRT Station, which sits on the North East Line, is directly connected to Punggol LRT Station. Completed in 2017, Waterway Point was jointly developed by Far East Organization, Frasers Centrepoint, and Sekisui House.
Several primary schools are located in the area, including Edgefield Primary School, Oasis Primary School, Punggol Green Primary School, Compassvale Primary School, and Punggol Cove Primary School. Interested buyers can check out the latest listings for Watertown on Edgeprop.sg.