Some capital ideas for profit-sharing

IN THE shophouse market last week, a S$37 million sale of a Boat Quay property turned a tidy S$16 million profit for its owner in just five years. The deal didn’t set any benchmarks. But it points to how potential for capital appreciation fuels continuing activity in the market, where high-net-worth investors eye trophy assets. 

Shophouse sales dipped in 2022 from a banner 2021, and caveats data shows that year-to-date sales are also down. However, a good number of shophouses change hands without the lodging of a caveat - that is, without the filing of a claim of interest in the property such as a mortgage, so volume may be higher than caveat records show.    

February data on the private resale market shows volume returning to the condominium market, with prices also rising in all regions except for the prime Core Central Region. The SRX-99.co data also put the overall median capital gain for resale condos at S$300,000 in February 2023, or S$26,000 more than the January median gain.