SINGAPORE — With over 14,000 resale private property transactions a year in Singapore, what are the factors that helped a resale unit at Honolulu Towers reap a massive gain of S$5.6 million?
On 23 July 2019, a 5,823 sq ft four-bedroom unit at the developmentt was sold at S$9.1 million, or S$1,563 psf, marking a 160% return on investment.
The owner had purchased the apartment on 15 October 2001 at S$3.5 million dollars, or S$601 psf. Nearly 18 years later, the decision proved a fruitful investment with an overall annualised profit of 6% per year.
Completed in 1985 by then developer Glory Realty Company Pte Ltd (Far East Organisation), Honolulu Towers along Bukit Timah Road comprises 30 units and is nestled within lush, thick greenery on prime land.
What were the contributing factors behind the massive profit gain?
Time in the market
As the adage goes, ‘All good things come to those who wait’. Indeed, clocking time in the market has certainly proved more beneficial than simply timing the market when it comes to this transaction. Whilst there have been four unprofitable resale transactions at Honolulu Towers, these were completed in the early 2000s when the local economy was still recovering from the impact of the Asian financial crisis. The owner held onto this apartment for almost eighteen years before selling it. The sale of a unit of this size and price is the first since 2012 in this development.
Rarity and accessibility
There are several reasons that justify the rarity and attractiveness of the estate. The highly accessible apartment is within five minutes’ walk of six bus stops and is located within eight minutes’ walk from Stevens MRT station along the recently launched Downtown Line.
Surrounded by a wealth of amenities, ranging from grocery giants, to childcare facilities and nearby shopping centres along the Orchard Road Shopping Belt, another highlight is the apartment’s 1 kilometre proximity to the highly sought-after Anglo-Chinese School (Primary) and Singapore Chinese Girls’ Primary School, and secondary schools, such as Singapore Chinese Girls’ School and the Chinese International School.
Indeed, the cherry on top of the cake is the limited number units which helped cement its uniqueness and rarity in the highly competitive Singapore property landscape.
The generous space and clean layout of the 5,823 sq ft Honolulu Towers apartment is a precious find. With penthouses of up to 10,312 sq ft, the 34-year-old condominium complex holds its own against much newer private properties. The units come with high ceilings and wide balconies, the likes not seen in more recent developments. Having a freehold tenure also contributes to the project’s appeal, especially in land-scarce Singapore.
*This story is contributed by EdgeProp.sg