A recent transaction at Jadescape condominium in Bishan has become a focal point of discussion in Singapore’s property market, with a seller netting an impressive $4.4 million profit after holding the property for just five years. This sale not only underscores the profitability of specific property types but also provides insights into broader market trends, especially in the high-value condominium segment.
Record-Breaking Gains at Jadescape
The property in question is a 4,230 square feet (sqft) penthouse at the 99-year leasehold Jadescape in District 20. Originally purchased in December 2019 for $5.8 million, or $1,371 per square foot (PSF), the unit was sold in December 2024 for $10.2 million. This translates to a resale price of $2,399 psf, marking the highest transaction price within the development as of January 2025 and the second highest on a PSF basis.
This transaction highlights the appeal of well-located, spacious penthouses even in leasehold developments. The seller’s gross gain of $4.4 million amounts to a 75% profit, far outstripping the 33% rise in Singapore’s private residential price index over the same period. On an annualised basis, the profit works out to an impressive 11.9%.
Jadescape, a popular development in the Rest of Central Region (RCR), has seen a steady increase in median prices. Data shows a 25% growth in median PSF prices from $1,739 in 2020 to $2,184 in 2024, underscoring the strong demand for properties in this city-fringe area.
The High-Value Condominium Market
The Jadescape transaction is part of a broader trend in Singapore’s luxury condominium market. In 2024, there were only 36 non-landed residential transactions exceeding $10 million, excluding executive condominiums (ECs). These accounted for a mere 0.2% of all non-landed home transactions during the year, highlighting the exclusivity of this segment.
The majority of buyers for these high-value properties were permanent residents, making up 56% of transactions, followed by Singaporeans at 28%, with the remaining 16% comprising foreigners and companies. The presence of affluent buyers from this group underscores the attractiveness of Singapore’s real estate market to individuals seeking both luxury and stability.
Among the 36 high-value transactions, only four were located in the RCR, while the rest were concentrated in the Core Central Region (CCR), reaffirming the CCR’s reputation as the go-to area for luxury living. However, the Jadescape sale in the RCR demonstrates that exceptional properties in city-fringe locations can achieve comparable success.
Executive Condominiums (ECs) Continue to Shine
While the Jadescape transaction set records by quantum, ECs emerged as the most profitable property type by percentage gains in Q4 2024. ECs, which are unique to Singapore and designed to bridge the gap between public and private housing, have consistently delivered strong returns since 2023.
For instance, a 958 sqft unit at Hundred Palms Residences EC in District 19 was sold for $1.8 million in December 2024, a 122% gain from its original price of $818,300 in July 2017. This translates to an annualised profit of 11.3% over 7.4 years. The significant returns on ECs can be attributed to their initial subsidised pricing and the pent-up demand when they become eligible for resale in the open market.
Loss-Making Transactions and Market Resilience
Despite the overall bullish sentiment, not all segments of the market experienced gains. The biggest loss-making transaction by quantum in Q4 2024 occurred at Orchard View, a freehold property in District 9. A 2,530 sq ft unit was sold for $7 million in October 2024, down 14% from its purchase price of $8.1 million in 2012. This resulted in annualised losses of 1.2% over a 12-year holding period.
By percentage, the most significant loss was at Altez in District 2. An 861 sqft unit changed hands for $1.5 million in October 2024, a 27% drop from its $2.1 million purchase price in July 2012. Annualised losses for this transaction amounted to 2.5%.
Interestingly, prime CCR properties accounted for 53% of all loss-making deals in Q4 2024, followed by the RCR (28%) and OCR (19%). Despite this, most CCR transactions—81%—were still profitable, reflecting the region’s overall resilience.
The proportion of loss-making transactions in both the landed and non-landed sectors rose slightly to 3.3% in Q4 2024, up from 2.6% in the previous two quarters. However, this figure remains low compared to historical peaks, such as Q2 2020, when 21.8% of transactions were loss-making. The steady decline since then underscores the market’s recovery and stability.
Total Number of Profitable Versus Loss Transactions
The trajectory of profitable property transactions in Singapore over the past three decades underscores the market’s remarkable growth and resilience. In 1995, the market saw a modest 13 profitable transactions in Q1, but this figure surged exponentially, peaking at 5,392 profitable deals in Q2 2007 during the pre-global financial crisis boom. Despite temporary dips—such as during the 2008–2009 crisis—profitability rebounded strongly, with transactions consistently exceeding 3,000 per quarter from 2017 onward. By 2024, quarterly profitable transactions averaged over 3,500, culminating in 4,083 deals in Q2 2024 alone.
This upward trend contrasts sharply with the decline in loss-making transactions, which plummeted from a peak of 853 in Q2 1999 to just 127 by Q4 2024.
Factors such as robust economic fundamentals, strategic cooling measures, and sustained demand for housing have fortified investor confidence, turning real estate into a cornerstone of wealth generation. Even amid challenges like the COVID-19 pandemic, profitable transactions remained robust, reflecting Singapore’s status as a safe haven for property investment. This enduring growth trajectory highlights the market’s maturity and its appeal to both local and international buyers seeking long-term value.
Market Outlook for 2025
Looking ahead, industry observers expect loss-making transactions to remain low in 2025, barring significant cooling measures or economic shocks. Declining mortgage rates have slightly improved buyer affordability, though the pace of rate reductions is expected to slow this year. Private home prices are predicted to rise by around 3% year on year, supported by robust upgrading demand, low unemployment, and strong household balance sheets.
The Jadescape penthouse transaction, along with other notable sales, underscores the resilience and profitability of Singapore’s real estate market. High-value properties continue to attract affluent buyers, while ECs remain a lucrative option for homeowners seeking strong returns. At the same time, the low proportion of loss-making deals highlights the market’s stability despite global economic uncertainties.
Key Takeaways
Record Gains: The Jadescape penthouse sale illustrates the potential for significant profits in Singapore’s real estate market, even in leasehold developments.
Luxury Segment Insights: High-value transactions are dominated by affluent individuals and concentrated in the CCR, though exceptional RCR properties like Jadescape can also achieve remarkable success.
EC Performance: ECs continue to deliver robust percentage gains, thanks to their unique positioning in the market.
Market Resilience: Loss-making transactions remain minimal, reflecting the overall strength and stability of Singapore’s property market.
As the market heads into 2025, the focus will likely remain on navigating policy changes and economic conditions while capitalising on opportunities in both luxury and mid-tier segments. Whether for homeowners or discerning buyers, Singapore’s real estate market continues to offer compelling opportunities for long-term growth.
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