Does holding a condominium for greater than 20 years imply larger features? We check out the info for Feb 2023

We lately compiled the highest 10 condominium features by the areas (CCR, RCR, OCR) primarily based on condominium transactions from 1 to 7 February 2023.

Among the many high 10 condominium gainers throughout the three areas, one of many transactions that stood out was the S$1.56m sale of a unit at Blue Horizon. Because the unit was purchased for round S$672k in 2002, it was held for 21 years, earlier than making a achieve of round S$888k when it was offered lately.

So we surprise if promoting a condominium unit that was bought greater than 20 years in the past can translate to the next achieve.

On this follow-up article, we’re reviewing condominium features with a holding interval of greater than 20 years, primarily based on transactions from 1 to 10 February 2023.

Amongst these seven transactions, 5 of them made a return of not less than 100%, with one other transaction nearly hitting a 100% return.

Based mostly on these transactions, it may very well be stated that holding a condominium unit for greater than 20 years can translate to the next achieve. We additionally discover that for many of those transactions, the features are greater than the preliminary buy costs when these models had been purchased greater than 20 years in the past.

However once we filter the info and have a look at the highest 10 condominium features from 1 to 10 February, solely two had been held for over 20 years. In the meantime, half of the highest 10 condominium gainers had been held for 11 to 17 years.

So an extended holding interval (20 years versus 15 years) doesn’t essentially translate to the next absolute achieve.

Extra importantly, we shouldn’t simply have a look at absolutely the capital achieve. A extra correct method can be to take a look at the respective annualised returns, which takes under consideration the impact of compounding. This additionally means that you can examine the transactions higher.

Within the case of the highest 10 condominium features above, the transaction with the very best annualised return is the S$3.08 million sale for Clementi Park. Curiously, it has one of many shortest holding intervals of six years.

Condos on the market

However, there’s a mixture of things that impacts the sale worth, which in flip impacts the capital achieve and annualised returns. This consists of the situation, measurement of the property and the state of the property market on the time of its sale and buy.

Planning to promote your property to earn some capital features? Allow us to aid you ease the method by connecting you with a property agent.

When you discovered this text useful, 99.co recommends A fast overview of condominium gross sales with not less than 100% achieve in December 2022 and A overview of the 28 condominium models that offered at a loss in November 2022.