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) property at The Nassim 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 elite District 10 purchased for approximately 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 corresponds to an 8.7% yearly profit. The profit was calculated to be 43% in percentage terms based on the purchase price.
Cushman & Wakefield looked at caveats for private, non-landed residences with a purchase history between January 2012 and June 2022, with transactions taking place in the second quarter of 2022. The top five profit-making and loss-making deals were then rated in terms of percentage and dollar amount. The analysis did not include transaction costs and taxes, such as buyer and seller stamp duties.
Due to the CCR’s much higher pricing and transacted unit sizes, the five highest money-making deals by quantum in the resale market in Q2 were all freehold units in the Core Central Region, according to the data. “The CCR market remains appealing for high-net-worth investors ready to spend significant sums of capital in the market,” said Wong Xian Yang, head of research at Cushman & Wakefield.
The five most profitable deals, 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%. In terms of percentage profit, the seller got a handsome profit of 70% on a 2,626 sq ft unit in 999-year leasehold D’Banyan in Sembawang. The apartment was bought in September 2016 for about S$1.24 million (S$471 psf) and sold in June for S$2.1 million (S$800 psf). After nearly 6 years of holding, the seller realized an annualized profit of 9.6 percent.
Wong claimed that 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 periphery and mass market properties. Furthermore, since infrastructure and utilities have enhanced accessibility and convenience, the appeal of residences in the RCR and OCR has expanded.
“Rising new-launch prices in the RCR and OCR would have a positive spillover effect on the resale market,” Wong observed. From 2012 to H1 2022, RCR and OCR new-launch median prices for non-landed residences of 800 to 1,100 sq ft grew by 56.3 percent and 84.3 percent, respectively.”
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