How do you define annualised capital gain (%)?

In the context of Singapore real estate, the annualised capital gain percentage is a measure of the average yearly return on investment for a property, calculated over a specific period. Here’s how it is typically defined:

- It is the total capital gain (the difference between the selling price and the purchase price of the property) divided by the number of years the property was held.
- This result is then expressed as a percentage to indicate the average annual return.

For example, if a property was purchased for $1 million and sold for $1.5 million after 5 years, the capital gain would be $500,000. The annualised capital gain would be calculated as follows:

[ \text{Annualised Capital Gain} = \left( \frac{\text{Capital Gain}}{\text{Number of Years}} \right) \times 100 ]
[ \text{Annualised Capital Gain} = \left( \frac{500,000}{5} \right) \times 100 = 10% ]

This means the property generated an average annual return of 10% over the 5-year period.

You can use tools available on EdgeProp Singapore to calculate and compare the annualised capital gains for different properties, helping you make informed investment decisions.