Why Do Some Resales Lose Millions While Others Make a Fortune?


Why Do Some Resales Lose Millions While Others Make a Fortune?

In Singapore's property market, every sale has its own story. Some sellers earn big profits, while others face losses.

For example, a 2,088 sqft unit at Rivershire sold for $4.32 million in May 2025, giving the owner a profit of $2.94 million. On the other hand, a four-bedroom apartment at Marina One Residences sold for $6.4 million, causing the seller to lose $703,250.

So what makes the difference? Why do some resales lead to fortune and others to frustration?

Let’s break it down.


Case Study 1:
Big Profit at Rivershire (District 9)


Bought:
May 1999 for $1.38 million ($661 per sq ft)
Sold: May 2025 for $4.32 million ($2,069 per sq ft)
Profit: $2.94 million (213%) over 26 years
Annual return: 4.5%

Why It Succeeded:

  • Held property for a long time, riding out market ups and downs
  • Freehold unit in prime Central Core Region (CCR)
  • Large size: 2,088 sq ft
  • Limited supply: Only 74 units in the development
  • Location improved with nearby Great World MRT and River Valley Primary School

Case Study 2:
Loss at Marina One Residences (District 1)


Bought: May 2017 for $7.1 million ($3,157 per sq ft)
Sold: May 2025 for $6.4 million ($2,845 per sq ft)
Loss: $703,000 over 8 years
Annual loss: -1.3%

What Went Wrong:

  • Purchased near market peak price
  • New launch price premium dropped
  • Rental income did not match high purchase price
  • Bought after government cooling measures
  • Luxury market challenges: Additional Buyer’s Stamp Duty (ABSD) and higher interest rates reduced demand

Side-by-Side Comparison

Aspect

Rivershire (District 9)

Marina One Residences (District 1)

Purchase Date & Price

May 1999: $1.38M ($661 psf)

May 2017: $7.1M ($3,157 psf)

Sale Date & Price

May 2025: $4.32M ($2,069 psf)

May 2025: $6.4M ($2,845 psf)

Profit / Loss

Profit: $2.94M (213%) over 26 years

Loss: $703K over 8 years

Annualised Return

4.5%

-1.3%

Key Success Factors / Issues

- Long holding period, rode out market cycles

- Freehold in prime CCR

- Large unit (2,088 sq ft)

- Limited supply (74 units)

- Improved location: near Great World MRT & River Valley Primary

- Bought near peak price

- New launch premium dropped

- Rental income low vs price paid

- Bought after cooling measures

- ABSD and rising interest rates hurt luxury demand

What Makes a Successful vs Unsuccessful Resale in Singapore Property?

Key Factor

Winning Resale

Losing Resale

1. Entry Timing & Market Cycle

Bought during market lows or stable periods; long-term holding smooths out ups and downs

Bought at market peak or hype phase; short holding leads to losses

2. Freehold vs Leasehold

Freehold properties, especially in prime areas (CCR, RCR), hold value well over time

99-year leasehold properties often lose value after 10-15 years unless in transformation zones

3. Location Changes

Located in growing neighborhoods with new MRT stations, schools, and amenities nearby

Located in oversupplied or less popular areas with limited transport and lifestyle options

4. Project Demand

Smaller, exclusive condos with unique layouts, good views, and privacy attract more buyers

Large, high-density developments with common layouts may have weaker demand

5. Buyer Profile

Projects popular with locals, families, and upgraders tend to keep value

Properties relying mainly on foreign or investor demand face more price risk

  • Timing is crucial: Buying at the right market phase and holding long-term helps build profit and reduce risk.

  • Property type matters: Freehold homes in central areas keep their value better than leasehold units.

  • Location evolution: Areas improving with new transport links and schools attract more buyers and higher prices.

  • Project appeal: Unique, low-density developments perform better in resale markets.

  • Buyer demand: Properties favored by stable local buyers hold value more reliably than those dependent on foreign investors.


Understanding these factors can help you make smarter decisions when buying or selling resale properties in Singapore.


Smart Buying Checklist: Avoid Common Property Pitfalls

Before you buy a property in Singapore, ask yourself these important questions:


Is the price near the highest point ever for this area or project?
Avoid buying when prices are at historic highs to reduce risk of loss.

Am I buying based on facts or just emotions?
Focus on clear property fundamentals, not just feelings.

Will this unit still attract buyers in 5 to 10 years?
Think about future resale demand and appeal.

Is the area undergoing major improvements like new MRT stations, schools, or amenities?
Good developments nearby can boost property value.

Can this property keep its value if the market drops?
Choose homes with strong long-term value.

Does the layout, size, or view make this unit unique?
Unique features often increase resale value.

Have I included all costs like Additional Buyer’s Stamp Duty (ABSD), interest rates, and renovation expenses?
Factor in all expenses to avoid surprises.


Buying Property is About Strategy, Not Just Buying

Every resale property story depends on timing, location, price, and patience. Successful buyers quietly invest in quality homes in the right areas and hold on through market ups and downs.

Losses usually happen when buyers rush into popular launches, pay too much at market peaks, or fail to understand market cycles.

If you want to succeed, don’t just follow trends. Focus on properties that will keep their value over time.

Want to avoid costly mistakes and make smart property decisions? Let’s connect. I can help you understand the Singapore property market and buy with confidence, not confusion.

Message me now!