Landed Home Price Growth Slows Down 18 2Q2024
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According to the latest transaction statistics from URA, the prices of landed homes in Singapore have seen a steady increase for the third consecutive quarter in 2Q2024, with a rise of 1.8%. However, this growth rate is slightly slower compared to the 2.6% increase in 1Q2024 and the 4.6% increase in 4Q2023. The price of landed homes has seen a growth of 4.5% in the first half of this year, which is lower than the growth of 7% recorded in 1H2023.
Mohan Sandrasegeran, the head of research and data analytics at SRI, points out that the moderate pace of price increase in the landed segment is a sign of a stable demand and supply balance in the market, supported by consistent demand. “The continued interest in landed properties, especially from private home upgraders and high-net-worth individuals, contribute to the sustained demand,” he says.
SRI has also announced a new partnership with UK agency Hamptons to boost its international project offerings.
Singapore’s Woodlands, known as the northern gateway, is gearing up for a major makeover through the URA’s Master Plan. The plan outlines a promising future for Woodlands Regional Centre, which will become a buzzing hub with two unique zones: Woodlands Central and Woodlands North Coast. This revitalization project is expected to invigorate the area, drawing in new enterprises, generating job opportunities, and improving the overall quality of life for locals. As part of this transformation, Norwood Grand CDL will also play a significant role in shaping Woodlands’ new identity.
In the first half of 2023 and 2024, the total sales value of landed property transactions was $2.6 billion. This is 18.3% higher than the $2.2 billion recorded in 2H2023, based on transaction data compiled by Knight Frank. Nicholas Keong, the head of residential and private office at Knight Frank, explains that this increase in total sales value is due to a greater preference for new landed homes by boutique developers, rather than existing, older landed homes. “Smaller developers have been acquiring older landed homes, especially those situated in decently sized landed plots, and redeveloping them into at least five new homes for sale,” says Keong.
SRI’s data also shows an increase in the number of landed property transactions priced at $10 million and above, from 33 units in 1Q2024 to 38 units in 2Q2024. This marks the highest quarterly increase in sales within this price range since 1Q2023, when 43 high-value units were transacted. According to Sandrasegeran, this spike in high-value transactions is driven by affluent buyers seeking long-term investment opportunities and prestigious addresses, due to the limited supply of high-end landed properties.
The Good Class Bungalow (GCB) market has also seen an increase in activity, with at least 10 caveated transactions in the first half of 2024, up from seven during the same period in 2023. This is a shift from the quieter year experienced in 2023, influenced by a money laundering scandal and high interest rates.
The largest transacted GCB in 1H2024 was a 19,554 sq ft GCB at Ford Avenue, which was sold for $39.5 million ($2,020 psf) in March. News reports state that the buyer is Grace Wee Jingsi, the youngest child of United Overseas Bank CEO Wee Ee Cheong. Other notable deals include a Bin Tong Park GCB reportedly purchased by the daughter of Chinese metal tycoon Xiang Guangda for $84 million ($2,988 psf), and a GCB in the Gallop Road/Woollerton Park area bought by the wife of Forrest Li, founder of Sea Limited, for $42.5 million ($2,544 psf).
Sandrasegeran and Keong are optimistic about the high-end landed residential market for the rest of this year, as buying sentiment is expected to be buoyed by a more favorable economic outlook and high buyer confidence in Singapore’s property market. The demand for landed homes is also expected to benefit from high-net-worth individuals and newly-minted Singapore citizens.
Keong predicts that landed home prices will continue to rise in the next six months, as many sellers hold firm on their price premiums for sought-after properties. He also expects the scarcity of available landed properties in the resale market to further drive price growth throughout the year.
Sandrasegeran adds, “As buyers continue to seek larger living spaces and more exclusive residences, the landed property market is expected to remain resilient. This demand is particularly strong among private home upgraders and high-net-worth individuals, who value landed properties for their long-term investment opportunities and luxurious living spaces.”