When it comes to property in Singapore, the oft-repeated mantra “location, location, location” has been gospel for decades. Conventional wisdom says that a prime address is the surest ticket to long-term capital gains. Yet the latest resale transactions paint a more nuanced picture — one where location is just the starting point, and not always the decisive factor.
Take July’s most profitable and most unprofitable resale deals as case studies. At one end, we have a 2,454 sqft 3-bedder at Mount Faber Lodge fetching its seller a staggering $2.9 million profit, equivalent to a 264% gain over 27 years. At the other, a 1,281 sqft unit at Helios Residences, also in a prime district, incurred a $757,000 loss after 18 years of ownership. Both properties are freehold, both sit in desirable neighbourhoods — yet their performance could not be more different.
The takeaway? Not all prime properties age gracefully. Some, despite an enviable address and luxury trimmings, can quietly erode a buyer’s wealth over time. The key lies in understanding why certain developments stand the test of time while others falter — and how to read the signs before you buy.
The Rise of Mount Faber Lodge: Enduring Appeal in a Changing Market
Completed in 1983, Mount Faber Lodge has had four decades to prove its resilience. Perched on the slope of Mount Faber Hill, it offers a rare mix of generous unit sizes, a peaceful hillside environment, and the timeless appeal of freehold tenure. Units range from 1,098 sq ft studios to sprawling triplex penthouses of over 3,700 sq ft.
Resale prices here have steadily appreciated from around $720 psf in July 2005 to roughly $1,500 psf today. While the annualised gain of 4.9% over 27 years might not sound explosive in the short term, it represents consistent compounding growth — the type of trajectory that builds significant wealth over decades.
The most recent deal, a $4 million sale for a ground-floor 3-bedder, is not even the record-holder for the development. That accolade belongs to a 3,703 sqft unit sold earlier this year for $5 million, netting its seller a $3.39 million profit after nearly 24 years.
So what drives this kind of enduring demand? Three key factors stand out:
Practical Luxury: These are not flashy showpieces but large, liveable homes that meet the evolving needs of families over the decades.
Scarcity Value: Few modern developments offer such expansive layouts in low-density, tranquil settings, especially freehold ones.
Market Relevance: The project’s appeal has kept pace with lifestyle changes. Its location offers a balance of seclusion and accessibility, without becoming dated or overshadowed by newer neighbours.
The Fall of Helios Residences: When Luxury Turns into Liability
Just slightly over 4km away, Helios Residences on Cairnhill Circle tells a cautionary tale. On paper, it ticks all the right boxes: prime District 9 address, freehold tenure, high-rise exclusivity, and luxurious finishes. Completed in 2011, it offers 2- and 3-bedroom units, along with lavish penthouses.
Yet the numbers tell a different story. Of all recorded transactions, at least 49 have been unprofitable, compared to just three that managed to turn a gain. Resale prices have fallen from $3,250 psf in 2010 to around $2,417 psf today, with only marginal stabilisation in recent years.
Why does a property with such premium features struggle to hold value?
Several possibilities emerge:
Mismatch Between Price and Enduring Demand
At launch, buyers may have been drawn to its prestige factor, paying top dollar in anticipation of continued appreciation. But sustaining that high price point requires a deep and resilient buyer pool, which may be lacking for smaller high-psf priced luxury units.
Functional Limitations
High-end interiors alone cannot compensate for layout inefficiencies or lack of practical liveability. Some buyers may prefer older, larger units with better proportions, even if the fittings are less glossy.
Competitive Saturation
In prime districts, new luxury launches keep arriving, often with more cutting-edge facilities or integrated lifestyle offerings, which can make slightly older luxury condos seem dated surprisingly fast.
Leonie Gardens: The Middle Ground
Somewhere between these extremes lies Leonie Gardens. Also in prime District 9, this 99-year leasehold development has delivered solid — if less spectacular — gains for long-term holders. A recent sale of a 2,540 sq ft 4-bedder brought in a $2.88 million profit after nearly 20 years, translating to an annualised return of 6.2%.
Its performance illustrates another point: even leasehold projects can shine with the right fundamentals. Leonie Gardens benefits from large unit sizes, proximity to Orchard Road, and a competitive price point compared to newer neighbours. It may not outshine the latest ultra-luxury developments, but it offers an appealing balance of space, location, and relative affordability.
Lessons for Today’s Buyers: How to Avoid the Luxury Trap
The contrast between Mount Faber Lodge, Leonie Gardens, and Helios Residences underscores a critical truth: Prime doesn’t guarantee profits, and luxury can lose its luster. For buyers — especially those intending to hold long-term — here are key takeaways to avoid costly missteps.
Look Beyond the Gloss
Don’t be seduced solely by marble countertops, infinity pools, or glossy brochures. Ask whether the unit and development offer practical, enduring value that will still appeal 10, 20, or 30 years from now.
Prioritise Functional Space
Large, well-laid-out units in low-density developments tend to weather market cycles better than compact, high-psf priced units that target a narrower pool of buyers.
Consider the Neighbourhood’s Evolution
A good address today may become more valuable if the surrounding area improves in accessibility, amenities, and lifestyle offerings. Conversely, in saturated luxury zones, competition from newer entrants can be fierce.
Study the Resale Track Record
Historical transaction data can reveal whether a development has a consistent pattern of profitable exits or a worrying history of losses. This is especially vital for freehold luxury projects where emotional appeal often masks underperformance.
Match Price to Market Depth
Even in prime districts, there’s a ceiling to what the market will pay — and that ceiling shifts over time. Buying too close to that peak can mean waiting years, even decades, to see real gains.
Why This Matters More Than Ever
Singapore’s property market remains one of the most resilient globally, but it is also increasingly sophisticated. Buyers are more discerning, and the gulf between long-term winners and underperformers is widening.
As interest rates fluctuate and global economic uncertainty persists, it’s no longer enough to “buy prime and wait.” The next generation of property owners — both investors and owner-occupiers — must be strategic, looking past the address and into the fundamentals that drive lasting value.
Mount Faber Lodge proves that even older developments can be wealth-building assets when they offer the right mix of scarcity, practicality, and consistent appeal. Helios Residences, meanwhile, is a reminder that luxury branding without enduring market relevance can quietly drain capital over time.
The moral of the story? In real estate, as in life, appearances can deceive. Before you sign on the dotted line, ask the harder questions. The answers might just be the difference between a property that ages like fine wine and one that turns into an expensive lesson.
Looking to buy a property that will stand the test of time? Speak with our sales consultants to find the right home with enduring value.
