The Nassim unit tops Q2 resale gains, with seller reaping S$6m profit after 4 years
The Nassim unit tops Q2 resale gains, with seller reaping S$6m profit after 4 years. A TRANSACTION for a 4,069 square foot (sq ft) unit at The Nassim was the most profitable deal by quantum in the resale market in the second quarter, with the seller pocketing S$6 million in profit in just over four years.
According to data compiled by real estate consultancy Cushman & Wakefield for The Business Times, the unit at the freehold condominium in prime District 10 purchased for around S$14 million (S$3,440 per sq ft) in February 2018 was sold in May this year for S$20 million (S$4,915 psf). This equates to an annualized profit of 8.7%. Based on the purchase price, the profit was calculated to be 43% in percentage terms. For its study, Cushman & Wakefield looked at caveats for private, non-landed homes purchased between January 2012 and June 2022 and transacted in Q2 2022. The top five profit-making and loss-making deals were then ranked in terms of percentage and dollar amount. The analysis did not include transaction costs and taxes, such as buyer and seller stamp duties.
The data revealed that the five largest money-making transactions in the resale market by quantum in Q2 were all freehold units in the Core Central Region (CCR), owing to the higher prices and transacted unit sizes in the CCR. Wong Xian Yang, head of research at Cushman & Wakefield, stated, “The CCR market remains ideal for high-net-worth investors looking to invest significant amounts of capital in the market.” The five most profitable transactions, on the other hand, were either in the Rest of Central Region or Outside the Central Region (OCR), with sellers pocketing profits ranging from 62% to 70%.
In terms of percentage profit, the seller made a tidy profit of 70% on a 2,626 sq ft unit at the 999-year leasehold D’Banyan in Sembawang. The unit was purchased for nearly S$1.24 million (S$471 psf) in September 2016 and sold for S$2.1 million (S$800 psf) in June. After nearly 6 years of holding, the seller made an annualised profit of 9.6 percent. The timing of the purchase in 2016 was fortunate in this case, as it occurred just before the market began to heat up in the second half of 2017.
Wong noted that RCR and OCR prices have benefited from a shift in demand toward more affordable city fringe and mass market properties as a result of the property cooling measures and loan curbs. Furthermore, the appeal of properties in the RCR and OCR has grown as infrastructure and amenities have improved accessibility and convenience. “Rising new-launch prices in the RCR and OCR would also have positive spillover effects for the resale market,” Wong added. RCR and OCR new-launch median prices for non-landed homes of 800 to 1,100 sq ft have increased by 56.3 percent and 84.3 percent, respectively, from 2012 to H1 2022.”
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