November's top 10 condo sales with highest capital gains split by holding periods

In November, we covered several condos and HDB flats sold within five years of purchase, which netted the owners insane all-time-high capital gains.

Traditionally, if you ask the older generation of homeowners, the assumption is that you should hold onto your property long enough, as its capital appreciation will increase over time.

This is because there's an expectation that the infrastructure around the block and within the neighbourhood will improve, such as new schools, malls, shops, transportation and MRT stations.

These then raise the value and demand for your house as prospective buyers are willing to pay more, especially if the estate is rife with amenities and conveniences.

As per the examples we've shared, this isn't always the case.

Sellers have been able to find buyers who value longer (or shorter) leases (for 99-year leasehold projects) and large spaces, regardless of whether the estate is fully developed or near the city.

They are able to market the value of their unit's unique location, long-term potential, "newness", unblocked views and spaciousness.

For example, you must have read about the five-room HDB resale flat in the non-mature Sembawang estate, which netted the first-time owners an estimated capital gain of $315,000 to $373,000. This is despite them only living there for the mandatory MOP of five years.

Similarly, in September, a 99-year-leasehold 7,050-sqft condo unit in Reflections at Keppel Bay, was sold for $17.6 million, netting the owners a capital gain of $6.6 million (60.2 per cent), despite living there for only one year. Yep, you heard it right – a $6.6 million gain after only one year.

If you're a condo owner on the fence about listing and selling your home, fret no more. We've compiled a list of the top 10 condo sales with the highest capital gains in November 2022 (ie. based on available URA transaction data captured between Nov 1 and 25).

Not only that, we've separated them by region (CCR, RCR and OCR) and whether the owners held onto them for 10 years or less, or more than 10.

While these capital gains are high, homeowners' actual returns must factor in costs like renovations, taxes, duties, maintenance, etc. If they sell the property within three years, they will also be subjected to Sellers Stamp Duty.

Top 10 condo sales in November 2022 with the highest capital gain for Core Central Region (CCR)

In the Core Central Region, the top gainer goes to the owner of the Ardmore Park unit in the fourth to sixth floor range. 

Holding on to his 2,885 sqft unit for nearly 22 years, he's made $7.75 million, or a 163 per cent return. Annualised, that's 4.53 per cent a year.

Most top gainers have held onto their properties for at least 15 years, with the top three for more than 20. What's impressive is the third top gainer – Tanglin Park – which despite being about 34 years old – managed to net the 27-year holder of his 1593 sqft unit a 90 per cent return.

On the contrary, the owner of a 1,066 sqft unit at Belmond Green sold his apartment after six and a half years, realising a capital gain of $1.25 million, or 113.64 per cent. Annualised, his return is 12.39 per cent a year – the highest on the list.

Consider him a lucky gainer, as over the same period, another owner in Belmond Green, who lived on a higher floor, sold his 1,335-sqft unit for $3.18 million, realising a lower capital gain of $920,000, or 40.71 per cent.

Most short-term holders of CCR condos made between $700,000 to $1.75 million after holding their properties for 4.6 to 7.3 years. Except for the Belmond Green gainer, the rest of the nine realised gains of between 22.44 and 48 per cent.

It's clear that, at least for CCR projects, the eight gainers who sold within 10 years are realising around 31 to 48 per cent returns, while those who held on longer saw between 90 to 163 per cent returns.

Top 10 condo sales in November 2022 with the highest capital gain for the Rest of Central Region (RCR)

In the Rest of the Central Region (RCR), the top gainers who held onto their property for at least 16 years saw capital gains between $1.2 million and $3 million, or 93 per cent to 226 per cent returns.

There are exceptions, like the Maplewoods owner on the 10-12 floor range, who sold his 2,917 sqft unit after 11.4 years to realise a gain of $1.4 million (36 per cent, 2.75 per cent annualised).

Or the The Esta owner on the 1-3 floor range, who sold his 1507 sqft unit after 10.7 years to realise a $1.2 million gain (63per cent).

The list has a mix of freehold and 99-year lease properties, with older freehold developments like Pandan Valley commanding between 154 per cent and 226per cent returns for the two sellers.

One Pandan Valley seller, whose 2131 sqft unit made a $1.94 million gain, had the highest return for holding onto his property for 18 years.

Notably, seven out of the top 10 gainers in this list realised gains in triple-digit percentages.

For short-term gainers, the Aalto home seller, who sold after about six years, saw a capital gain of $1.43 million, or a 49 per cent return.

However, the Maplewoods seller in this list, having held onto his 1335 sqft property on the 4-6 floor range for less than seven years, made the most from his $1.75 million purchase.

He earned 68 per cent or 7.95 per cent annualised return, meaning his percentage gain is almost double that of the Maplewoods seller who sold after 11 years. Despite having a smaller-sized unit, his yearly gain is more than two times the other.

Top 10 condo sales in November 2022 with the highest capital gain for Outside of Central Region (OCR)

Finally, within the OCR, we're seeing a mix of private condos and executive condominiums (ECs) in the gainers' list. Note that for ECs, they become privatised after 10 years.

The seller from The Eden at Tampines EC held onto his unit for 21.3 years before realising a 171 per cent gain, or $1.8 million. Contrast this with the seller from The Tampines Trilliant EC, who held onto his EC unit just a few months after his 10th year and realised a gain of $1.099 million, or 92 per cent.

This is because the former bought his 1948 sqft unit much earlier in 2001 for $664,000, while the latter bought his 2110 sqft unit in 2012 for $1.2 million. On a per-square-foot basis, they sold at $924 and $1090 psf, respectively.

Separately, while the 23-year-holding seller from The Clearwater saw the highest capital gain at $1.78 million in the OCR, the 19-year-holding seller from Hillview Park registered the most percentage gains, not just for the OCR but across all regions, at 283 per cent.

He bought the 1248 sqft unit for $465,000 in 2003 and sold it for $1.78 million in 2022, seeing an annualised gain of 7.19 per cent.

For those who sold within ten years, only one seller at Bowmont Centre sold within three years, which means he is subjected to Seller's Stamp Duty. Of course, his annualised return is also the highest due to the quick flip, at 16 per cent.

Interestingly, all top ten gainers in this list registered absolute gains of between $570,000 and $690,000, despite varying holding periods, tenure and age. Could this be the sweet spot for absolute gains for potential sellers if they sell within ten years?

Summary

Across all regions, the top absolute gainer in November is the seller from Ardmore Park, who made $7.75 million after a 22-year wait.

Percentage-wise, the top gainer is the seller from Hillview Park in the OCR, who waited 19 years to realise his 283 per cent return.

The biggest absolute gainer for sellers who sold within 10 years was the The Tate Residences seller at Claymore Road (CCR). He sold his 3219 sqft unit for almost $10 million, realising a capital gain of $1.75 million (22 per cent) after about six years.

However, the Aalto seller from the RCR might have had the better deal. He bought his 1959 sqft low-floor unit for $2.9 million, held it for about six years, and sold it for $4.33 million to earn a $1.43 million return (almost 50 per cent).

Percentage-wise, neither of them is the highest, though.

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That credit goes to the Belmond Green (CCR) seller, who made $1.25 million, or a 114 per cent return, after six and a half years. Furthermore, his apartment is on a low floor range (first to third) and isn't new (about 18 years old).

Based on our November findings, if you've held on to your property for more than 10 years, or planning to, it is prudent to ensure the neighbourhood and estate around you have matured or been developed enough.

Still, it wouldn't hurt to find out how much it is currently valued and consider speaking to a property consultant to know how much you stand to gain.

As you can see from these top gainers who held on for decades, most of their returns are in triple-digit percentages.

Per the November figures, 20 of the 30 sellers who held for more than 10 years realised triple-digit-percentage gains.

For those who sold within 10 years, only one realised a triple-digit gain (a CCR property). For those who did sell within this period, 14 out of 30 realised at least 50 per cent returns.

Notably, five out of 10 sellers who sold within 10 years in the OCR realised 62 to 74 per cent gains – four of them ECs.

If you've owned your property for less than 10 years, the potential to unlock double-digit percentage gains shouldn't be discounted. It means you can reinvest your realised gains to upgrade or right-size (or realise further gains with your next property).

ALSO READ: Top districts with the most profitable sales (for HDB, condo and landed) in the last 5 years

This article was first published in 99.co.