Several cooling measures have been launched over time to chill the property market.
Particularly, the Seller’s Stamp Duty (SSD) goals to curb short-term property hypothesis by taxing homeowners who promote their residential properties inside three years.
Still, that hasn’t stopped a small quantity of homeowners from promoting their properties inside a pair of years, and made an all-time excessive acquire throughout the respective developments.
While trying by means of the apartment transactions which have made all-time excessive positive aspects of their respective tasks, three transactions stood out to us.
Condo items that have been bought inside three years, and made an all-time excessive acquire of their respective tasks
| Condo identify | Floor space (sq ft) | Purchase worth | Purchase date | Sale worth | Sale date | Capital acquire | Estimated SSD* (tax fee) | Estimated capital acquire after SSD |
|---|---|---|---|---|---|---|---|---|
| One Robin | 1,905 | $2.2m | 22 Mar 2022 | $3.75m | 20 Oct 2022 |
$1.55m
(70.5%)
|
$450,000
(12%)
|
$1.1m
(50%)
|
| Reflections At Keppel Bay | 7,050 | $11m | 10 Sep 2021 | $17.6m | 12 Sep 2022 |
$6.6m
(60.2%)
|
$1.41m
(8%)
|
$5.2m
(47.4%)
|
| Parc Clematis | 1,044 | $1.72m | 4 Oct 2020 | $2.06m | 10 Nov 2022 |
$344k
(20%)
|
$82.4k
(4%)
|
$261k
(15%)
|
*SSD is charged on the sale worth or market worth, whichever is larger. For illustration functions, we assume the sale worth is the upper quantity to find out the SSD.
It’s price noting that each one three apartment items have been first bought within the final two years, at a time of sturdy property market.
At the identical time, the homeowners of these items have been capable of make an all-time excessive acquire inside their developments after they bought their items just lately.
Among these three transactions, the Reflections At Keppel Bay transaction stood out for its absolute quantum acquire of $6.6 million.
Given that the unit was bought simply two days after the one-year mark, the homeowners have been subjected to a decrease SSD fee of eight per cent, netting them an estimated acquire of $5.2 million.
Here’s a desk of the SSD fee payable with the corresponding holding interval.
| Holding interval | SSD fee |
|---|---|
| Up to 1 yr | 12% |
| More than 1 yr and as much as 2 years | 8% |
| More than 2 years and as much as 3 years | 4% |
Admittedly, these all-time excessive positive aspects don’t account for different admin prices such because the SSD and authorized prices. Still, even after deducting the SSD, the positive aspects are fairly substantial.
Nevertheless, we be aware that transactions with all-time excessive positive aspects throughout the respective developments are outliers, forming round eight per cent of 3,535 resale transactions tracked by our information group as of Nov 27, 2022.
So the three transactions we highlighted are much more of an anomaly, on condition that they have been first purchased within the final two years throughout a scorching property local weather.
When it involves promoting your property, whether or not it is purchased just lately or held for a few years, it is vital to recognise the present property local weather and look at the latest comparable transactions close by.
ALSO READ: Buyer’s and vendor’s stamp responsibility: What it’s best to know
This article was first revealed in 99.co.
Owner turns $6.6m profit on sale of Reflections at Keppel Bay unit, Money News
Owner turns $6.6m profit on sale of Reflections at Keppel Bay unit, Money News
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Owner turns $6.6m profit on sale of Reflections at Keppel Bay unit, Money News