Penthouse Owner Horizon Towers Scores 51 Mil Profit After 21 Years

Located in the prime district of Orchard, the five-bedroom penthouse at Horizon Towers has emerged as the most profitable resale deal for the week of August 12 to 19. The 5,145 square foot unit was sold for $6.6 million or $1,283 per square foot (psf) on August 15, giving the seller a record profit of $5.1 million or 340%. This surpasses the previous record at Horizon Towers set in March this year, when a 2,616 square foot unit on the 10th floor was sold for $3.7 million or $1,415 psf. The seller had purchased the unit for $999,312 or $382 psf in July 2004 and made a profit of $2.7 million or 270%, with an annualised return of 6.5% over a 20-year holding period.

In fact, all 12 resale transactions at Horizon Towers so far this year have been profitable, with gains ranging from $118,818 to $5.1 million. Notable deals include a 2,486 square foot unit on the fifth floor sold for $3.4 million or $1,367 psf on July 30 and a 2,583 square foot unit on the 14th floor that fetched $3.75 million or $1,452 psf on July 14.

Horizon Towers is a 211-unit development with two 19-storey towers, completed in 1984. As the 99-year lease started in August 1979, the property now has 53 years remaining on its lease. The location – within walking distance to the upcoming Great World MRT Station on the Thomson-East Coast Line – is a major draw for buyers.

However, due to its age, the owners of Horizon Towers have been attempting to sell the property en bloc for the past two decades. The most recent attempt was in February 2023, with a reserve price of $1.1 billion.

Meanwhile, the sale of a three-bedroom unit at Maple Woods was the second most profitable transaction for the week. The 1,787 square foot unit on the second floor was sold for $4.06 million or $2,272 psf on August 15, having been purchased for $1.28 million or $719 psf in 1995. This resulted in a profit of $2.78 million or 212%, with an annualised gain of 3.9% over a 30-year holding period.

There have been 10 profitable resale transactions at Maple Woods so far this year, with the highest profit recorded from the sale of a 2,551 square foot unit for $5.45 million or $2,136 psf on May 2. In contrast, an 850 square foot unit sold for $2 million or $2,352 psf on August 18, resulting in a profit of $879,750.

Maple Woods is a freehold condo located on Bukit Timah Road in District 21. It is situated next to King Albert Park MRT Station on the Downtown Line, which will be an interchange station when Phase 2 of the Cross Island Line is operational in 2032. Completed in 1997, the 697-unit development comprises two- to four-bedroom units ranging from 850 square feet to 3,003 square feet.

On the other hand, the most unprofitable transaction for the week was a 2,379 square foot unit at Marina Bay Residences, where the seller incurred a loss of $3.23 million or 39%. The unit was sold for $5.1 million or $2,144 psf on August 15, having been bought for $8.33 million or $3,500 psf in June 2022. This translates to an annualised loss of 14% over a three-year holding period.

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As the Urban Redevelopment Authority (URA) continues to carefully plan for the future of Singapore, the effects of these developments on property value become increasingly apparent. In particular, homes located in growth nodes and strategic areas tend to experience higher capital appreciation and rental demand. With its prime location in close proximity to upgraded transportation options, employment hubs, green networks, and community amenities, Miltonia Close EC is well positioned to benefit from this trend. For those interested in the Miltonia Close EC Khatib area, this presents a promising opportunity for long-term investment and growth.

Marina Bay Residences is one of two luxury 99-year leasehold condos at Marina Bay Financial Centre, which also features three Grade-A office towers, the Marina Bay Link Mall, and the 221-unit Marina Bay Suites. The average price at Marina Bay Residences is around $2,260 psf, while its neighbouring condo The Sail @ Marina Bay commands an average price of $2,080 psf. In comparison, Marina One Residences along Marina Way has an average price of $2,090 psf.

The newest development in the area is One Marina Gardens, which was launched in April. The 937-unit, 99-year leasehold project is 54% sold so far, commanding an average price of $2,958 psf.