Your Condo Gained S$400K on Paper. Did You Actually Make S$400K?

Your S$400K paper gain

“My condo was S$1.2 million and is now worth S$1.6 million. Have I made S$400,000?” The S$400K is gross price appreciation, not necessarily realised profit or sale cash. An estimated market value is also not a completed deal.

Gross appreciation

Gross price appreciation: hypothetical purchase S$1,200,000 and sale S$1,600,000 equals S$400,000, or 33.3%. The asking price is not a valuation. Compare completed transactions, floor, facing, layout and condition.

After-cost illustrative gain

How costs change the result: for a residential purchase between 20 Feb 2018 and 14 Feb 2023, BSD on S$1.2 million was S$32,600. Assume combined purchase and sale legal expenses S$6,000, negotiated 2% selling commission S$32,000 plus 9% GST S$2,880, lifetime loan interest S$110,000, and non-recoverable renovation S$35,000. S$400,000 minus these costs = S$181,520. This simplified gain after LISTED costs is not a full investment return: it excludes property tax, maintenance, insurance, repairs, rental receipts, any applicable ABSD and SSD, other tax and opportunity costs. Commission is negotiable; actual GST and stamp duty depend on dates.

Mortgage principal versus interest

Outstanding mortgage principal is not automatically an investment loss. The principal financed the home; repaying it increases equity. Mortgage interest is an expense. Never subtract the entire remaining loan from price appreciation and call the result profit.

Estimated cash proceeds

Cash sale proceeds are another calculation. Hypothetical selling price S$1,600,000 less loan redemption S$650,000, CPF refund including accrued interest S$300,000, negotiated agency fee plus assumed GST S$34,880, and sale legal expenses S$3,000 yields S$612,120 cash, assuming no SSD or other obligations. That cash includes your previous equity and principal repayments, not just new profit.

CPF refunds

CPF refunds generally restore CPF housing principal used and accrued interest to the relevant member's accounts. They do not represent money paid to the buyer or bank, but reduce immediate cash proceeds. For owners aged 55 or above, retirement savings requirements may affect availability for a new purchase.

Seller's Stamp Duty

Seller's Stamp Duty depends on the acquisition date and holding duration. For residential properties acquired on or after 4 July 2025, SSD is 16% if sold within one year; 12% over one to two years; 8% over two to three years; 4% over three to four years; generally none after four years. Earlier acquisitions have different schedules. On a S$1.6M sale subject to 4% SSD, the illustrative duty is S$64,000, based on price or market value, whichever is higher.

Check the selling price

Is your home really worth S$1.6 million? A sale at S$1.5M gives gross appreciation S$300K; at S$1.6M, S$400K; at S$1.7M, S$500K. These are sensitivity examples, not forecasts. Compare recent completed transactions rather than relying on listings or automated estimates.

What comes after the sale?

Where will the proceeds go? A larger home, right-sizing or investment can all be reasonable. But replacing a property at a much higher price may erode the benefit of the sale after stamp duties, higher mortgage costs and risks. Assess the entry price, alternatives, future supply, holding power and exit demand.

Sell, hold or reposition

SELL may be sensible if the price and next use of equity are attractive. HOLD may make sense if the home meets your needs and carrying costs are comfortable. SELL AND REPOSITION can fit a changed life stage. None is automatically superior, and future appreciation is not assured.

Three-year holding test

Three-year HOLD test: compare possible future prices S$1.5M, S$1.6M and S$1.7M, without calling them forecasts. Include interest, loan principal repayment, maintenance, property taxes, insurance, rental income if relevant, selling costs and returns available from alternative uses of cash. Can you hold without a forced sale?

Five figures to check

Five numbers: realistic sale price, acquisition and transaction costs, lifetime holding costs and any rent, mortgage balance plus CPF refund and disposal fees, and your next-property costs. Calculate economic gain and cash proceeds separately.

Profit versus available cash

Your condo may have appreciated by S$400K, but you may not have made S$400K net or received S$400K cash. Ask what the after-cost gain is, what money can actually be deployed and whether selling improves your next move.

Personal Condo Equity Review

Start at https://jerrylow.sg/tools/ . For a personal Condo Equity Review WhatsApp Jerry “CONDO EQUITY REVIEW” with condominium name, approximate purchase year and intended timing. We can assess comparable sales, cash proceeds, hold costs, next-property choices and SELL versus HOLD, without obligation. Read Series #1 https://jerrylow.sg/articles/hdb-upgrade-gap-2026/ ; #2 https://jerrylow.sg/articles/hdb-1-million-net-sale-proceeds-2026/ ; #3 https://jerrylow.sg/articles/hdb-upgrade-sell-first-buy-first-2026/ . Jerry Low 劉權義 | Huttons Asia Pte Ltd. The thinking behind the next move. Visit jerrylow.sg for more insights.

Official references

Official references: IRAS Seller's Stamp Duty https://www.iras.gov.sg/taxes/stamp-duty/for-property/selling-or-disposing-property/seller%27s-stamp-duty-%28ssd%29-for-residential-property ; IRAS Buyer's Stamp Duty https://www.iras.gov.sg/taxes/stamp-duty/for-property/buying-or-acquiring-property/buyer%27s-stamp-duty-%28bsd%29 ; IRAS gains from property disposal https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/what-is-taxable-what-is-not/gains-from-sale-of-property-shares-and-financial-instruments ; CPF housing refund https://www.cpf.gov.sg/member/home-ownership/using-your-cpf-to-buy-a-home/cpf-refund-when-selling-or-transferring-property .

Important disclaimer

Disclaimer (1 Nov 2026): All amounts are hypothetical and omit some costs and possible income; S$181,520 is a simplified after-listed-cost example, not a comprehensive audited return. Gains from genuine capital disposals generally are not taxed but trading transactions may be taxable. Confirm actual CPF, SSD, BSD, financing, sale price and tax rules. This is general education, not individual financial, legal, tax or investment advice.