Discover

Show me the calculation

9 views
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.
Thank you for using EdgeProp Buddy. I'm currently in Beta mode - I encourage you to seek professional real estate advise on matters like these