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Singapore’s landed residential property segment demonstrated remarkable resilience in the first half of 2024 to post steady price growth and transaction volumes, defying broader market headwinds. This niche luxury segment continues to attract affluent buyers seeking trophy assets and generational wealth preservation vehicles in one of Asia’s most stable real estate markets.
Market Overview and Singapore Landed Property Price Trends
The Urban Redevelopment Authority’s (URA) Private Residential Property Price Index for landed homes, widely regarded as the authoritative Singapore landed property price index, hit a record high in Q1 2024, registering a 2.6% quarter-on-quarter increase. This marks the seventh consecutive year of price appreciation for landed properties since 2018, underscoring the segment’s enduring appeal as a store of value and highlighting the positive landed property price trend in Singapore.
Transaction activity remained robust, with 681 landed home deals totaling S$3.7 billion recorded in 1H 2024 (up to June 8). This performance is on track to surpass both 2H 2023 and 1H 2023 figures, indicating a pick-up in buyer appetite despite lingering economic uncertainties and elevated interest rates. The sustained volume of Singapore landed property transactions and their corresponding prices offer valuable insights into market dynamics for investors and analysts alike.
Notably, the average unit price of landed homes in the Core Central Region (CCR) surged by 45.3% year-on-year in Q2 2024, following two quarters of declines. This sharp rebound signals renewed interest in prime locations among ultra-high-net-worth individuals (UHNWIs) and contributes to the overall upward Singapore landed property price trend.
Average Price of Landed Property in Singapore
While specific figures vary by location and property type, the average price of landed property in Singapore has seen consistent appreciation over the past few years. In the prestige segment (properties valued above S$10 million), the average transaction price in 1H 2024 was approximately S$14 million, reflecting the high-end nature of this market.
It’s worth noting that the average price can be somewhat misleading due to the wide range of landed properties available, from more modest terrace houses to luxurious Good Class Bungalows (GCBs). Investors should pay close attention to Singapore landed property transacted prices in specific areas of interest to gain a more accurate picture of local market conditions.
Good Class Bungalows: The Crown Jewels
The rarefied Good Class Bungalow (GCB) segment saw increased activity in 1H 2024, with nine deals worth approximately S$219 million recorded based on caveats lodged. This represents an 8% increase in total value compared to 2H 2023, despite matching the previous period’s transaction volume.
Several high-profile deals made headlines, including:
- A Ford Avenue GCB sold for S$39.5 million (S$2,020 psf on land area)
- A Cornwall Gardens property transacted at S$36 million
- A Sixth Avenue bungalow fetched S$27.5 million
These Singapore landed property transaction prices for GCBs offer valuable benchmarks for the ultra-luxury segment of the market.
GCB prices showed signs of bottoming out, with the average transacted unit price on land area rising for two consecutive quarters in Q1 and Q2 2024. The Q2 2024 average of S$2,148 psf represents the highest level since Q2 2023, suggesting a potential inflection point in the market and contributing to an overall positive Singapore landed property price trend.
Prestige Landed Homes: A Broader Luxury Play
The prestige landed homes segment (defined as non-GCB properties valued above S$10 million) witnessed a significant rebound in 1H 2024. Fifty-eight deals worth a combined S$814 million were recorded, marking a 26% jump from the S$647 million transacted in 2H 2023.
Interestingly, there was a notable shift towards the lower end of the prestige spectrum. Properties priced between S$10 million and S$15 million accounted for over 74% of prestige landed transactions in 1H 2024, up from 73% in 2H 2023 and just 49% in 1H 2023. This trend suggests buyers are becoming more value-conscious, even within the luxury segment, and may influence the overall Singapore landed property transaction price dynamics.
Market Drivers and Headwinds
Singapore’s landed property market stands strong, buoyed by a potent mix of factors that ensure its resilience. Amidst the turbulent waters of global geopolitics, Singapore’s haven status beckons capital flows seeking refuge in stability and wealth preservation.
The scarcity of landed properties in this land-scarce nation further underpins the long-term potential for value appreciation. Meanwhile, the economy is gaining momentum, with GDP growth accelerating to 2.7% year-on-year in Q1 2024 and projected to maintain a steady pace of 1-3% for the entire year. The tourism sector is also experiencing a resurgence as visitor arrivals rebound, injecting optimism into the overall economic sentiment.
However, potential headwinds remain on the horizon:
- Interest Rate Uncertainty: The US Federal Reserve’s stance on interest rates remains a key consideration for property investors.
- Tech Sector Volatility: Big Tech companies’ challenges could impact demand from nouveau riche buyers in the GCB market.
- Geopolitical Risks: Ongoing tensions in the Middle East and Ukraine threaten global economic stability.
Outlook and Investment Implications
PropNex projects that private landed home prices could appreciate by 6-8% for the full year 2024, representing a moderation from the double-digit growth seen in recent years but still outpacing many other asset classes. This forecast aligns with the broader Singapore landed property price trend observed in recent years.
For UHNWIs and family offices, Singapore’s landed property market offers several compelling attributes:
Wealth Preservation
The scarcity and prestige of landed properties, particularly GCBs, make them effective inflation hedges and multi-generational wealth transfer vehicles.
Portfolio Diversification
Landed properties provide exposure to Singapore’s stable real estate market, offering a counterbalance to more volatile asset classes.
Lifestyle Asset
Beyond pure investment considerations, these properties offer unparalleled privacy and living spaces in a global city-state.
Potential for Value-Add
Many older properties present opportunities for redevelopment or extensive renovations, allowing investors to unlock additional value.
Investment Strategies to Consider
Investors looking to capitalise on Singapore’s landed property market should consider several strategic approaches. Value hunting presents an opportunity in the current climate, as some softening in asking prices may allow savvy buyers to acquire prime landed properties at relative discounts to peak valuations.
Given Singapore’s inherent scarcity of landed properties, a long-term hold strategy could prove lucrative, yielding significant capital appreciation over multi-year horizons. For those with development expertise, redevelopment plays offer an intriguing option; acquiring older properties for rebuilding or major refurbishment could unlock substantial value.
Lastly, focusing on the lower end of the prestige landed segment, particularly properties in the S$10-15 million range, offers an attractive value proposition in the current market. This sector has shown increased activity and may present a sweet spot for investors seeking to enter the high-end market without stretching to GCB territory.
Singapore’s landed property market continues to demonstrate its resilience and enduring appeal to HNWIs and institutional investors. While near-term headwinds exist, the fundamental drivers of scarcity, stability, and prestige remain intact.
The positive Singapore landed property price trend and steady transaction volumes suggest ongoing confidence in this segment. For those with the means and long-term perspective, strategic acquisitions in this rarefied segment are savvy portfolio additions in the years to come.
As always, investors should closely monitor Singapore landed property transacted prices and broader market indicators to inform their decision-making in this dynamic and exclusive market. If you’re looking for a landed property in Singapore as an investment, contact our top 1% luxury real estate team at Singapore Luxury Homes.
