The Analysis Behind Landed Properties In Singapore

Mohan Sandrasegeran

Mohan Sandrasegeran

Typically, landed properties belong to an asset class that is associated with wealth and prestige. 

In a broad perspective, under the Urban Redevelopment Authority (URA)’s classification, there are 3 types of landed properties in Singapore. They are mainly detached houses, semi-detached houses and terrace houses. 

There are also special properties like Good Class Bungalows (GCBs), which are a superior form of detached houses. To know more about the eligibility criteria in purchasing a landed property, you can also refer to our comprehensive article on it. 

Generally, GCB deals are associated with high value transactions. For instance, a recent GCB at Olive Road sold for $50.2 million or another deal in 2021, when the family of Kopitiam king bought Lornie Road GCB for S$26.8 million.  

In this article, we will run through some of the notable market trends of landed properties that have occurred over the years. 

Limited supply of landed properties 

Source: Ohmyhome Research, URA Realis

As of 2021, there are about 73,000 landed property units in Singapore. The number of landed properties are in limited quantities, which is the reason why it belongs to an exclusive class of properties. 

It’s generally rare to see new launches of landed properties as well. Hence, whenever there are new launches of such landed properties, they are highly sought after by buyers and investors. 

For instance, earlier this year Belgravia Ace (newly launched landed property) was launched. And it immediately saw a large pick up rate for the project. Over 72% of units were sold over the launch weekend. 

Belgravia Ace, had a praiseworthy performance amid the backdrop of the property cooling measures. Newly launched freehold landed properties are a rarity. Hence, demand for these properties was robust. 

Rising landed property prices in recent years

Source: Ohmyhome Research, URA Realis

Landed prices recorded an unprecedented 13.3% price growth rate in 2021. A spike in resale transactions, aspiring buyers looking for bigger space and higher value transactions as a result of en bloc activities accelerated the price growth for landed properties. 

In 1Q2022, the interest in new landed homes such as Belgravia Ace attributed to prices keeping pace by 4.0% for the overall landed price growth.

Source: Ohmyhome Research, URA Realis

In addition, median unit prices of landed properties have seen an increase over the years.  More demand for such properties have led to the rise in prices. Median unit price increased from $1,239 psf in 2020 to $1,339 psf in 2021. 

Growing number of landed home sales in the past 3 years

Source: Ohmyhome Research, URA Realis

Interest for landed property transactions have grown over the years. As demand for such properties have increased since 2019 for both new and resale transactions. As the number of landed transactions rose from over 2,000 units being transacted in 2020 to over 3,000 units being sold in 2021.

Despite Singapore’s economy reeling from the implications of the Covid-19 pandemic, the landed market saw higher sales volume in 2021. This was the highest number of landed home transactions since 2010, when there were over 4,000 landed home units sold. 

This could be attributed to the need for a bigger living space stemming from the work from home culture and the implementation of home-based learning for students.  

It is also worth noting that, with limited supply of landed housing in the primary market (new home sales), most of the transactions occurred in the secondary market (resale). 

Source: Ohmyhome Research, URA Realis

Recent transactions in 1Q2022 saw District 28 having the most number of landed homes sold. A total of 117 units were transacted. With primarily transactions from the North East Region planning area seeing the most number of units sold from areas such as Serangoon, Ang Mo Kio, Sengkang and Hougang. 

The contributing factor for the boost in sales was due to the newly launched Belgravia Ace which saw the majority of the units in the projects sold. 

Outlook

We can expect demand for landed properties to remain positive as it is a niche asset class. As landed homes in prime locations and new landed homes will continue to drive demand and price appreciation.

Due to the presence of the latest property cooling measures and a lack of supply of new landed properties, the landed housing sales volume in 2022 might not be as high as in 2021, but prices are most likely to be competitive and move upwards.

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