Hello readers, I have been pretty quiet in the blogosphere lately. This is partly because of time spent putting up my properties on sale, and at the same time, looking at property to buy. Our property of interest is a landed house. Since my household is big, the natural choice is a house with bigger space.
- Freehold landed (or 999 years old)
- 99 years old Leasehold landed
- Cluster House ak.a. town house or condo with terrace houses.
The above types of landed came into my mind, but after some deliberation, I decided to go for Freehold landed property. This is because I love the fact that I own the land and the property “forever” without deprecation and also with the possibility to unlock the value when I am at an older age. Or I can simply leave it to my kids.
The difference in pricing in terms of Price Per Square Feet (psf) are huge among these types of landed. Clearly, FH is most expensive, followed by 999 then 99 years leasehold.
For leasehold 999 and 99 LH landed, the land belongs to you until expiry. In the case of FH, you own the land forever, unless governmental intervention. This is because ultimately our government still own all land in the country. For Cluster House, it is likened to landed in a condominium and you are NOT able to rebuilt or perform A&A (addition & alterations).
Except for cluster houses, you can basically tear down the house, and rebuilt or do A&A subject to plot ratio, structural integrity, and URA – BCA approval.
PRICE OF Freehold LANDED TODAY?
About 10 years ago, I contemplated buying a landed house and had went for viewings. Back then, you can easily find a FH landed selling for SGD1,000 psf (land) +/- with a 2.5 to 3 storey 2500 to 3000 sqft built up floor area. Today, you can hardly find any in the listings at that kind of price. Perhaps the “super ulu” locations or very run-down conditions, or very odd shapes layout, then the asking price can be SGD1,000 psf (land) or lower.
The asking price listed are commonly between SGD1,300 to 1,600 psf, with good locations or well renovated ones as high SGD2,000 psf and above. Below are typical land sizes for 3 different types of FH landed properties within my range of search. Locations such as Changi, Loyang, Tanah Merah, Jurong West, Woodlands, Admiralty, Sembawang, Yio Chu Kang (excludes those near to Lentor MRT), Sengkang, Punggol were all excluded in my consideration.
Below are the pricing estimate. Psf is against land area.
NUMBER OF LANDED PROPERTIES IN SINGAPORE TODAY
There are only 5% of landed house in Singapore today.
In 1990, there were about 46,000 landed properties in Singapore. This is more than the 31,000 Condos and Other Apartments recorded – (data by Singstat). Over the course of the last thirty years, more and more HDBs and Condos and other Apartments were constructed, but definitely not for landed properties. In 2019, there are 69,000 landed properties and 222,000 Condos and Other Apartments and more than 1 million HDB homes.
The below chart tells it all why landed properties is very valuable in a land scarce Singapore.
FH landed properties is really expensive. That said, I am afraid if I miss the boat buying today I will never be able to buy an affordable one in years down the road. Of course, I am those who will work out my sums properly before jumping into a big decision.
10 years ago, I was hoping that price could be SGD 2 million for a decent condition landed property in a rather mid-level convenient location, I cannot find it back then.
10 years later, I was hoping for SGD 3 million with the same condition. Again, it is almost not possible to find.
10 years from now, it is likely that the price tag will be SGD 4 million and above with the same condition. And I reckon that landed property will likely average at SGD2,000 psf (land).
Imagine that a 99 year LH Condo outside CCR already selling for more than SGD2,000 psf. Let alone a land that you owned “forever” at SGD2,000 psf.
For now until the next ½ year or so, I will concentrate on selling my properties while eying for a home sweet freehold landed home.
Do you think landed properties pricing will ever crash in Singapore?