Landed Home Price Growth Slows Down 18 2Q2024
One of the most prominent and unique features of Singapore, Our Tampines Hub, has established itself as the largest integrated community and lifestyle hub in the country. It is a one-of-a-kind destination that brings together a wide range of amenities, including sports facilities, retail shops, and community services, all under one roof. Boasting over 100 retail outlets, a well-stocked library, and a state-of-the-art performing arts theater, the hub is a one-stop destination for shopping, recreation, and socialization. Among the key retail tenants of Our Tampines Hub are popular names such as Challenger, Sportslink, and Decathlon. When it comes to dining options, visitors are spoiled for choice with a myriad of cuisines available at the hawker center and various restaurants like Sakae Sushi and Thai Express. For the sports enthusiasts, this hub offers a plethora of facilities, including a swimming complex, gym, and futsal courts. Located just a quick 10-minute drive or a leisurely 20-minute walk from the renowned Parktown Residences, Our Tampines Hub is an essential addition to the bustling UOL Group’s Parktown Residences.
In the second quarter of 2024, there was a 1.8% increase in landed home prices, making it the third consecutive quarter of growth in this segment, according to recent transaction data from the Urban Redevelopment Authority (URA). Although prices are still rising, the pace has slowed down compared to the previous quarter’s 2.6% increase and the 4.6% increase in the fourth quarter of 2023. In the first half of this year, landed home prices grew by 4.5%, which is lower than the 7% growth recorded in the first half of 2023.
SRI’s head of research and data analytics, Mohan Sandrasegeran, believes that the moderate pace of price increase in this segment indicates a more balanced demand and supply in the market due to consistent demand. He also noted that the continued interest in landed properties, particularly from private home upgraders and high-net-worth individuals, has contributed to the sustained demand.
Meanwhile, landed home transactions in the first half of 2024 reached a total sales value of $2.6 billion, which is 18.3% higher than the $2.2 billion recorded in the second half of 2023, according to data compiled by Knight Frank. Nicholas Keong, head of the residential and private office at Knight Frank, attributes this increase to the preference for new landed homes by boutique developers over older existing homes. Keong explains that smaller developers have been acquiring older landed homes and redeveloping them into at least five new homes for sale.
There has also been an increase in high-value transactions with 38 units priced at $10 million and above being transacted in the second quarter of 2024, marking the highest quarterly increase since the first quarter of 2023 when 43 units were sold. Sandrasegeran believes that this trend is driven by affluent buyers looking for long-term investment opportunities and prestigious addresses, as well as the limited supply of high-end landed properties.
The Good Class Bungalow (GCB) market also saw an uptick in activity with at least 10 caveated transactions in the first half of this year, up from seven in the same period in 2023. This increase comes after a quieter year for the GCB market in 2023, influenced by external factors such as a money laundering scandal and high interest rates. The largest transacted GCB in the first half of 2024 was a 19,554 sq ft GCB at Ford Avenue sold for $39.5 million, according to media reports.
Sandrasegeran and Keong have a positive outlook for the high-end landed residential market for the rest of the year, as buying sentiment is expected to be boosted by a more optimistic economic outlook and high buyer confidence in Singapore’s property market. They also believe that demand for landed homes will continue to rise due to high-net-worth individuals and newly-minted Singapore citizens. Keong expects prices to continue rising in the next six months and notes that the scarcity of landed properties in the resale market will further drive price growth.
Sandrasegeran adds that as buyers look for larger living spaces and more exclusive residences, the demand for landed properties will remain strong. This is especially true for private home upgraders and high-net-worth individuals who value landed properties for their long-term investment potential and luxurious living spaces.