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Show me the calculation

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To calculate the Compound Annual Growth Rate (CAGR) for a property like The Pinnacle@Duxton, you need to follow these steps:

Gather Data

  • Collect the historical transaction prices for The Pinnacle@Duxton over the period you are interested in. You can find this data on EdgeProp Singapore.

Identify Time Period

  • Determine the start and end dates of the period for which you want to calculate the CAGR.

Calculate CAGR

  • Use the formula for CAGR, which is essentially the average annual rate of return of an investment over a specified period of time.
    • The formula is: [ \text{CAGR} = \left( \frac{\text{End Value}}{\text{Start Value}} \right)^{\frac{1}{\text{Number of Years}}} - 1 ]

Example

  • If the price of a unit at The Pinnacle@Duxton was $500,000 at the start of the period and $700,000 at the end of the period, and this period is 5 years:
    • CAGR = (\left( \frac{700,000}{500,000} \right)^{\frac{1}{5}} - 1)
    • CAGR ≈ 0.118 or 11.8% per year.

Interpretation

  • This means that the property value at The Pinnacle@Duxton has been growing at an average annual rate of approximately 11.8% over the specified period.
You can use the historical transaction data available on EdgeProp Singapore to perform this calculation accurately.
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