Singapore Condo Highest Resale Gains: Nov Top 10 in CCR, RCR, OCR (By Lease)

In November 2022, several condos and HDB flats sold within five years of purchase gained attention as their owners achieved incredibly high capital gains, setting historical records.

The older generation of homeowners believed in holding onto their properties for a significant period before considering a sale, as capital appreciation tends to increase over time. They anticipated that infrastructure around the block and within the neighborhood would improve over time, with new schools, malls, shops, transportation, and MRT stations. These developments would increase the property’s value and demand, as potential buyers would be willing to pay a higher price, especially if the property is equipped with convenient amenities.

The situation is somewhat different now. For example, a seller of a five-room HDB flat in Sembawang made over S$300,000 in capital gains after holding it for just five years. However, this is an exceptional case and not always the norm.

Sellers have been able to find buyers who value longer (or shorter) leases (for 99-year leasehold projects) and larger spaces, regardless of whether the property is in a well-developed area or close to the city. They have successfully marketed the unique location, long-term potential, novelty, unobstructed views, and spaciousness of these units. For example, in the Sembawang case mentioned above, first-time homebuyers were estimated to have made capital gains of S$315,000 to S$373,000, despite only living there for the mandatory 5-year Minimum Occupation Period (MOP).

Similarly, in September, a 7,050 sq ft, 99-year leasehold condo unit at Reflections at Keppel Bay was sold for S$17.6 million, earning the owner a capital gain of S$6.6 million, a 60.2% return, despite having lived there for only one year. The key point is — a S$6.6 million profit in just one year.

To provide detailed information for private property owners looking to sell, we have compiled a list of the top 10 condos with the highest capital gains from private resales in November 2022 (based on URA transaction data from November 1 to 25, 2022).

Furthermore, we have categorized them by region (Core Central Region CCR, Rest of Central Region RCR, and Outside Central Region OCR) and whether they were held for more than 10 years. While these condos have high capital gains, homeowners’ actual returns must account for costs such as renovations, various taxes, and maintenance fees. If a property is sold within 3 years, Seller’s Stamp Duty (SSD) is also applicable.

Top 10 Private Resale Condos in CCR with the Highest Capital Gains in November 2022

The highest gainer in the CCR was the owner of a unit on the 4th to 6th floors at Ardmore Park. The sold unit, with an area of 2,885 sq ft, was held for nearly 22 years, earning a profit of S$7.75 million, which translates to a 163% return and an annualized return of 4.53%.

Most of the high-yield properties were held for at least 15 years, with the top three held for over 20 years. The third-ranked Tanglin Park is particularly impressive because, although it was completed 34 years ago, a 1,593 sq ft unit held for nearly 27 years achieved a 90% return.

Among projects held for 10 years or less, the top performer was a 1,066 sq ft unit at Belmond Green, which was sold after six and a half years, realizing a capital gain of S$1.25 million, a 113.64% return, with an annualized return of 12.39%.

There’s an element of luck involved. During the same period, another owner at Belmond Green living on a higher floor sold his 1,335 sq ft unit for S$3.18 million, achieving a lower capital gain of S$920,000, for a return of 40.71%.

Most short-term holders of CCR condos earned between S$700,000 and S$1.75 million after holding their properties for 4.6 to 7.3 years. Apart from the exceptionally lucky owner at Belmond Green, the other nine saw returns ranging from 22.44% to 48%.

It’s clear that, at least for CCR projects, eight of the sellers who sold within 10 years achieved returns of about 31% – 48%, while those who held for longer periods secured returns of 90% – 163%.

Top 10 Private Resale Condos in RCR with the Highest Capital Gains in November 2022

 Among the top 10 in the RCR, condos held for over 16 years achieved capital gains of S$1.2 million to S$3 million, representing returns of 93% to 226%.

There are exceptions, such as the owner of a 10th-12th floor unit at Maplewoods, who sold his 2,917 sq ft unit after 11.4 years for a profit of S$1.4 million, a 36% return with an annualized return of 2.75%. In contrast, the owner of a 1st-3rd floor unit at The Esta sold his 1,507 sq ft unit after 10.7 years for a profit of S$1.2 million, achieving a 63% return.

The table above includes a mix of freehold and 99-year leasehold projects. Older freehold developments like Pandan Valley brought two sellers returns of 154% and 226%, with one buyer’s 2,131 sq ft unit fetching a S$1.94 million profit, the highest gain after an 18-year holding period.

It’s worth noting that 7 of the top 10 condos achieved triple-digit percentage growth.

The gains from short-term holdings were different. A seller from Aalto made a S$1.43 million capital gain after holding for about 6 years, a return of 49%.

Meanwhile, a seller at Maplewoods held their 1,335 sq ft, 4th-6th floor property for less than 7 years, earning the largest profit on a purchase price of S$1.75 million, with a return of 68% (annualized 7.95%). This was nearly double the return rate of another Maplewoods seller who sold after 11 years, and more than double their annualized return, despite the smaller unit size.

 Top 10 Private Resale Condos in OCR with the Highest Capital Gains in November 2022

 Finally, in the OCR, the top 10 includes both private condos and Executive Condominiums (ECs). It is important to note that ECs become fully privatized after 10 years.

A seller at The Eden at Tampines EC achieved a 171% gain, or S$1.8 million, after holding the property for 21.3 years. Compare this to a seller from The Tampines Trilliant EC, who made a S$1.099 million profit, a 92% return, after holding their EC unit for just over 10 years. This is because the former bought their 1,948 sq ft unit for S$664,000 back in 2001, while the latter purchased their 2,110 sq ft unit for S$1.2 million in 2012. On a per square foot basis, they sold for S$924 psf and S$1,090 psf, respectively.

Additionally, the highest capital gain in the OCR was from a seller at The Clearwater, who made S$1.78 million after a 23-year holding period. The highest percentage gain, however, went to a seller at Hillview Park, who achieved a 283% return after holding for 19 years. This figure is not only number one in the OCR but also ranks first across all regions. The seller bought the 1,248 sq ft unit for S$465,000 in 2003 and sold it for S$1.78 million in 2022, with an annualized return of 7.19%.

Among projects held for 10 years or less, only one seller, from Bowmont Centre, sold within 3 years, meaning they were liable for Seller’s Stamp Duty (SSD). Of course, due to the quick flip, their annualized return was also the highest, at 16%. Interestingly, despite varying holding periods, tenures, and ages, the absolute gains for these top 10 projects were all between S$570,000 and S$690,000. Perhaps this is the sweet spot for absolute gains if potential sellers are looking to sell within 10 years?

Conclusion

Across all regions, the biggest absolute gainer in November was a seller from Ardmore Park, who earned S$7.75 million after waiting 22 years. In percentage terms, the biggest gainer was a seller from Hillview Park in the OCR, who waited 19 years to achieve a 283% return.

For sellers who sold within 10 years, the biggest absolute winner was a seller at The Tate Residences on Claymore Road in the CCR. They sold their 3,219 sq ft unit for nearly S$10 million, realizing a capital gain of S$1.75 million, a 22% return, after about 6 years.

However, a seller from Aalto in the RCR might have had a more profitable deal. They bought a 1,959 sq ft low-floor unit for S$2.9 million, held it for about 6 years, and then sold it for S$4.33 million, making a return of S$1.43 million, which is nearly a 50% return.

In percentage terms, however, none of them were the highest. First place goes to a seller from Belmond Green (CCR), who earned S$1.25 million, a 114% return, after six and a half years. Moreover, their condo was on a low floor (1st to 3rd floors) and was not new (about 18 years old).

Based on our findings for November, if you are holding or plan to hold a property for more than 10 years, it’s prudent to ensure that the surrounding neighborhood and town are mature or fully developed. Nevertheless, it doesn’t hurt to find out its current value and consider talking to a real estate consultant to understand how much you could gain. As seen from these top winners who held on for decades, 20 out of 30 sellers who held for more than 10 years achieved triple-digit percentage gains. For those who sold within 10 years, only one achieved a triple-digit gain (a CCR property), and 14 out of all 30 achieved at least a 50% return.

It’s worth noting that 5 out of the 10 sellers in the OCR who sold within 10 years achieved returns of 62% – 74%, with 4 of them being ECs.

If you’ve owned your property for less than 10 years, the potential for earning more than double-digit percentage gains should not be overlooked. This means you can reinvest the realized gains to upgrade or right-size, or to achieve even more gains with your next property.

For further enquiries, please get in touch:

WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us