What does annualized capital gain mean?

Annualized capital gain in Singapore property refers to the total capital gain (the profit from selling a property at a higher price than its purchase price) divided by the number of years the property was held, giving an average yearly return on that appreciation.

For example, if a condo unit bought for S$1 million sells for S$1.5 million after 5 years, the capital gain is S$500,000, and the annualized capital gain is S$100,000 per year (S$500,000 ÷ 5). This metric helps compare investment performance across properties or holding periods on EdgeProp Singapore transaction data, focusing on resale price growth while excluding costs like taxes or fees. It indicates the smoothed-out appreciation rate, useful for evaluating condos like The Centris.