Penthouse at UE BizHub City rakes in $2.2 mil profit

The sale of a five-bedroom penthouse at UE BizHub City (formerly UE Square) topped the list of the most profitable resale transactions from September 26 to October 10. The 3,089 sq ft unit, located on the 18th floor, was sold for $6.28 million ($2,031 psf) and had been purchased for $4.1 million ($1,327 psf) in December 2009. As a result, the seller gained a profit of $2.18 million (53%), which equals an annualised gain of 3.1% over 14 years.

UE BizHub City is a mixed use development containing an office/commercial tower, a four-storey shopping podium, and two residential blocks housing 345 units. The developer, a local real estate and development firm United Engineers, was acquired by Shanghai-based Yanlord Land Group in 2019. UE is now privatised and has become a unit of Yanlord Land.

Residential prices at UE BizHub City have seen a significant increase over the past few years. Based on resale caveats, the average price at the development is $1,986 psf, with the average price back in 2003 being $904 psf. Prices at UE BizHub City are on par with nearby projects, such as RV Point ($1,982 psf), Vivace ($2,181 psf), and Robertson Edge ($2,075 psf).

The second most profitable transaction in the same time period was the sale of a three-bedroom unit at The Chuan, a 999-year leasehold condo on Lorong Chuan. The 1,367 sq ft unit, on the 20th floor, fetched $3.02 million ($2,208 psf) on September 29. It had been bought for about $992,000 ($726 psf) in October 2006. The seller enjoyed a profit of $2.03 million (204%), which translates to an annualised gain of 6.8% over 17 years. This is the highest profit to date at The Chuan.

The most unprofitable transaction between September 26 and October 10 was the sale of a 1,615 sq ft unit at Marina Bay Suites. The three-bedroom unit, on the 37th floor, was sold for $3.15 million ($1,951 psf) on September 27 and had been bought for $3.8 million ($2,357 psf) in June 2010. The end result was a loss of $656,000 (17%), or an annualised loss of 1.4% over 13 years. This is the seventh unprofitable resale transaction at Marina Bay Suites this year. The only profitable sale this year at Marina Bay Suites was a three-bedroom unit that transacted for $3.6 million ($2,310 psf).

Marina Bay Suites is a 99-year leasehold development within the Marina Bay financial district with 221 units. It was completed in 2013 as a joint-venture project between Keppel Land, CK Asset Holdings, and Hongkong Land. As for The Chuan, it is a 106-unit condo completed in 2007 by local real estate group Kheng Leong Co.

The residents of Zion Road Condo enjoy an extensive bus network reaching every part of Singapore. Bus stops close to Zion Road and River Valley Road allow for seamless connection to many areas like the Central Business District (CBD), Marina Bay, and Orchard Road. Furthermore, the bus routes offer convenient commuting options to cater to the diverse needs of the condo residents.

Ultimately, the most profitable resale transactions at UE BizHub City and The Chuan show the potential gain that can be earned through real estate investments.