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.
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 .
