The Edge Property identified 10 projects with the highest capital appreciation between 2011 and 2016. Most of them were in the central region or near a growth area. About half of them were also located within walking distance of MRT stations or within 1km of popular schools. The study estimated capital appreciation based on the average annual transacted psf price between 2011 and 2016. Projects with fewer than five transactions for the relevant unit size range in each of the reference years were excluded from comparison.
Investors in top-performing projects enjoyed capital gains ranging from 6% to 18% if they had bought in 2011 and divested last year. In comparison, the URA property price index of private residential properties fell 7% between end-2011 and end-2016.
Top-performing projects for 700 to 900 sq ft units
For homes in the 700 to 900 sq ft range, the top 10 projects in terms of price appreciation were Waterview (18%), d’Leedon (18%), The Meyerise (15%), A Treasure Trove (15%), Oleander Towers (14%), Questa @ Dunman (13%), The Miltonia Residences (11%), The Palette (10%), Hedges Park Condominium (9%) and Boathouse Residences (9%). Of these, six are located near the city centre or a growth area (see Table 1).
Three 786 sq ft units at Waterview were bought in 2011 and sold in 2016 at an average profit of $127,667
The top-performing project, Waterview, is a 99-year leasehold condo located in Tampines, a regional centre. The average price of 700 to 900 sq ft units at Waterview rose from $875 psf in 2011 to $1,034 psf in 2016. Based on the matching of URA caveat data, three 786 sq ft units at the Waterview were bought from the developer at $854 to $887 psf in 2011 and sold at $1,003 to $1,066 psf last year. The units fetched profits ranging from $117,000 to $141,000 for their sellers, with the average profit at $127,667. The annualised capital gain averaged 3%. Waterview was completed in 2014 and comprises 696 units.
Investors at Waterview enjoyed an early-mover advantage. Similar- sized units at Q Bay Residences were transacted at an average price of $1,059 psf when the project was launched two years later, in 2013. At The Santorini, units in this size range were transacted at an average price of $1,095 psf when the project was launched in 2014. The higher prices at the subsequent launches set a new benchmark for the area and propelled the prices at Waterview.
At d’Leedon, 700 to 900 sq ft units were sold at an average price of $1,594 psf in 2011
d’Leedon, a 99-year leasehold condo located in prime District 10, takes second place in the list of top-performing projects. Units of 700 to 900 sq ft were sold at an average price of $1,594 psf in 2011. The average transacted price rose to $1,881 psf in 2016. d’Leedon was completed in 2014 and comprises 1,703 units. It is located within walking distance of the Farrer Road MRT station.