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 S$6 million profit was pocketed by the seller of a 4,069 square foot (sq ft) unit at The Nassim in the second quarter, making it the most profitable deal by quantum in the resale market.
According to data compiled by 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 for S$20 million (S$4,915 psf) in May this year. This equates to an 8.7 percent annualized profit. The profit was calculated to be 43 percent in percentage terms based on the purchase price. Cushman & Wakefield examined caveats for private, non-landed homes with a prior purchase history between January 2012 and June 2022, and which were transacted in Q2 2022, for its study. It then ranked the top five profit-making and loss-making deals in terms of percentage and dollar amount. Transaction costs and taxes, such as buyer and seller stamp duties, were not included in the analysis.
Due to the higher prices and transacted unit sizes in the CCR, the five largest money-making transactions in the resale market by quantum in Q2 were all freehold units in the CCR, according to the data. “The CCR market remains ideal for high-net-worth investors looking to invest significant amounts of capital in the market,” said Wong Xian Yang, head of research at Cushman & Wakefield. The five most profitable transactions, on the other hand, occurred in the Rest of Central Region or Outside the Central Region (OCR), with sellers pocketing profits ranging from 62% to 70%.
The most profitable deal in terms of percentage was for a 2,626 sq ft unit at 999-year leasehold D’Banyan in Sembawang, where the seller made a tidy profit of 70%. The unit was purchased in September 2016 for nearly S$1.24 million (S$471 psf) and sold for S$2.1 million (S$800 psf) in June. The seller made an annualised profit of 9.6 percent after nearly 6 years of holding. In this case, the timing of the purchase in 2016 was fortunate, as it occurred just before the market began to pick up steam in the second half of 2017.
Wong noted that as a result of the property cooling measures and loan curbs, RCR and OCR prices have benefited from a shift in demand toward more affordable city fringe and mass market properties. Furthermore, as infrastructure and amenities have improved accessibility and convenience, the appeal of properties in the RCR and OCR has grown. “Rising new-launch prices in the RCR and OCR would have positive spillover effects for the resale market,” Wong continued. From 2012 to H1 2022, RCR and OCR new-launch median prices for non-landed homes of 800 to 1,100 sq ft increased by 56.3 percent and 84.3 percent, respectively.”
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