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. The seller of a 4,069 square foot (sq ft) house at The Nassim made a S$6 million profit in the second quarter, making it the most profitable deal by quantum in the resale market.
According to Cushman & Wakefield statistics compiled for The Business Times, the unit in the freehold condominium in prestigious 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 a yearly profit of 8.7%. Based on the purchase price, the profit was calculated to be 43%.
Cushman & Wakefield examined caveats for non-landed private houses purchased between January 2012 and June 2022, with transactions taking place in the second quarter of 2022. The top five profitable and loss-making transactions were then ranked in percentage and dollar amount. Transaction costs and taxes, such as buyer and seller stamp duties, were not included in the analysis.
According to the data, the five largest money-making deals by quantum in the resale market in Q2 were all freehold units in the Core Central Region, owing to the CCR’s substantially higher price and transacted unit sizes. “The CCR market remains appealing for high-net-worth investors willing to invest considerable quantities of capital,” said Wong Xian Yang, head of research at
The five most profitable transactions, on the other hand, happened in the Rest of Central Region (OCR), with sellers pocketing gains ranging from 62% to 70%. In terms of percentage profit, the seller made a tidy 70% on a 2,626 sq ft apartment in Sembawang’s 999-year leasehold D’Banyan. The apartment was purchased in September 2016 for around S$1.24 million (S$471 per square foot) and sold in June for S$2.1 million (S$800 per square foot). The sale made an annualized profit of 9.6 percent after nearly 6 years of holding.
According to Wong, as a result of property cooling measures and credit constraints, RCR and OCR prices have benefited from a shift in demand toward more affordable city peripheral and mass market properties. Furthermore, as infrastructure and utilities have improved accessibility and convenience, the desirability of RCR and OCR houses has grown.
“Rising RCR and OCR new-launch pricing would have a favorable spillover effect on the resale market,” Wong remarked. RCR and OCR new-launch median prices for non-landed dwellings of 800 to 1,100 sq ft increased by 56.3 percent and 84.3 percent, respectively, from 2012 to H1 2022.”
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