Does holding a condo for more than 20 years mean higher gains? We take a look at the data for Feb 2023

We recently compiled the top 10 condo gains by the regions (CCR, RCR, OCR) based on condo transactions from 1 to 7 February 2023.

Among the top 10 condo gainers across the three regions, one of the transactions that stood out was the S$1.56m sale of a unit at Blue Horizon. As the unit was bought for around S$672k in 2002, it was held for 21 years, before making a gain of around S$888k when it was sold recently.



So we wonder if selling a condo unit that was purchased more than 20 years ago can translate to a higher gain.

In this follow-up article, we’re reviewing condo gains with a holding period of more than 20 years, based on transactions from 1 to 10 February 2023.

Condo name Size (sq ft) Bought for/ Date bought Sold for/ Date sold Capital gain Years held Return Annalised return
International Plaza 1,507 S$488k

6 Jan 1999

S$1.9m

9 Feb 2023

S$1.41m 24 289% 5.83%
Jervois Lodge 1,238 S$1.18m

16 Mar 1998

S$2.33m

2 Feb 2023

S$1.15m 25 97.5% 2.76%
Blue Horizon 1,216 S$672k

8 Jan 2002

S$1.56m

3 Feb 2023

S$888k 21 132% 4.09%
Simei Green Condominium 1,249 S$533k

2 May 1997

S$1.14m

8 Feb 2023

S$605k 26 114% 2.96%
The Warren 1,066 S$490k

16 Jan 2002

S$1.07m

6 Feb 2023

S$580k 21 118% 3.79%
Orchid Park Condominium 1,249 S$545k

1 Oct 1998

S$1.1m

3 Feb 2023

S$555k 25 102% 2.85%
Melville Park 1,044 S$600k

4 Jan 2000

S$940k

3 Feb 2023

S$340k 23 56.7% 1.97%

Among these seven transactions, five of them made a return of at least 100%, with another transaction almost hitting a 100% return.

Based on these transactions, it could be said that holding a condo unit for more than two decades can translate to a higher gain. We also notice that for most of these transactions, the gains are more than the initial purchase prices when these units were bought more than 20 years ago.

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But when we filter the data and look at the top 10 condo gains from 1 to 10 February, only two were held for over 20 years. Meanwhile, half of the top 10 condo gainers were held for 11 to 17 years.

Condo name Size (sq ft) Bought for/ Date bought Sold for/ Date sold Capital gain Years held Return Annalised return
Ardmore II 2,024 S$4.21m

19 Oct 2006

S$6.28m

8 Feb 2023

S$2.07m 17 49.1% 2.38%
Draycott Eight 4,015 S$7.22m

17 Aug 2017

S$8.68m

1 Feb 2023

S$1.46m 6 20.2% 3.11%
International Plaza 1,507 S$488k

6 Jan 1999

S$1.9m

9 Feb 2023

S$1.41m 24 289% 5.83%
The Cosmopolitan 1,141 S$1.46m

24 June 2009

S$2.8m

10 Feb 2023

S$1.34m 14 91.8% 4.76%
Signature Park 1,421 S$980k

29 May 2007

S$2.28m

3 Feb 2023

S$1.3m 16 132% 5.42%
Allsworth Park 1,959 S$2.71m

22 Mar 2012

S$4m

9 Feb 2023

S$1.29m 11 47.6% 3.60%
Thomson 800 1,399 S$1.42m

14 Aug 2009

S$2.6m

1 Feb 2023

S$1.18m 14 83.4% 4.43%
Jervois Lodge 1,238 S$1.18m

16 Mar 1998

S$2.33m

2 Feb 2023

S$1.15m 25 97.5% 2.76%
Clementi Park 1,873 S$1.94m

10 Jul 2017

S$3.08m

3 Feb 2023

S$1.14m 6 58.8% 8.01%
Grange Infinite 2,701 S$6.05m

12 Dec 2016

S$7.18m

7 Feb 2023

S$1.13m 7 18.7% 2.48%

So a longer holding period (20 years as opposed to 15 years) doesn’t necessarily translate to a higher absolute gain.

More importantly, we shouldn’t just look at the absolute capital gain. A more accurate way would be to look at the respective annualised returns, which takes into account the effect of compounding. This also allows you to compare the transactions better.

In the case of the top 10 condo gains above, the transaction with the highest annualised return is the S$3.08 million sale for Clementi Park. Interestingly, it has one of the shortest holding periods of six years.

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Nevertheless, there’s a combination of factors that affects the sale price, which in turn affects the capital gain and annualised returns. This includes the location, size of the property and the state of the property market at the time of its sale and purchase.

Planning to sell your property to earn some capital gains? Let us help you ease the process by connecting you with a property agent.

If you found this article helpful, 99.co recommends A quick review of condo sales with at least 100% gain in December 2022 and A review of the 28 condo units that sold at a loss in November 2022.

The post Does holding a condo for more than 20 years mean higher gains? We take a look at the data for Feb 2023 appeared first on .

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