The landed property market in Singapore continues to experience price growth, albeit at a slower pace. In the second quarter of 2024, landed home prices increased by 1.8%, marking the third consecutive quarterly rise in this residential segment. However, this is a deceleration from the 2.6% growth recorded in the first quarter of 2024 and the 4.6% rise in the fourth quarter of 2023.
Factors Influencing Price Growth
The more moderate pace of price increase suggests a balanced demand and supply in the market, driven by consistent interest from various buyer segments. Notably, private home upgraders and high-net-worth individuals have shown a persistent interest in landed properties, contributing to sustained demand. This demographic values the long-term investment potential and the exclusivity that landed homes offer.
High-Value Transactions
A significant trend in the landed property market is the increase in high-value transactions. In the second quarter of 2024, the number of landed property transactions priced at $10 million and above rose from 33 units in the first quarter to 38 units. This surge in high-value deals reflects the ongoing demand from affluent buyers seeking prestigious addresses and long-term investment opportunities. The limited supply of high-end landed properties has further fueled this trend.
Notable Transactions
Several high-profile transactions have been recorded in the first half of 2024. The most significant deal was the sale of a 19,554 sq ft Good Class Bungalow (GCB) at Ford Avenue for $39.5 million, or $2,020 per square foot (psf), in March. The buyer is Grace Wee Jingsi, the youngest child of United Overseas Bank CEO Wee Ee Cheong. Other notable GCB transactions include a property in Bin Tong Park bought for $84 million and another in the Gallop Road/Woollerton Park area purchased for $42.5 million.
Market Outlook
Experts remain optimistic about the high-end landed residential market for the remainder of 2024. Mohan Sandrasegeran, head of research and data analytics at SRI, expects buying sentiment to be buoyed by a favorable economic outlook and high buyer confidence in Singapore’s property market. The scarcity of available landed properties in the resale market is likely to further support price growth throughout the year.
Nicholas Keong, head of the residential and private office at Knight Frank, anticipates continued price increases for landed homes over the next six months. Many sellers are expected to hold firm on their price premiums for sought-after properties. The demand for larger living spaces and more exclusive residences is expected to remain strong, particularly among private home upgraders and high-net-worth individuals.
Conclusion
The landed property market in Singapore is experiencing a period of moderated yet sustained price growth. The increase in high-value transactions and the persistent demand from affluent buyers underscore the market’s resilience. As the year progresses, the combination of limited supply and robust demand is expected to keep the landed property market buoyant, with prices continuing their upward trajectory. This trend highlights the enduring appeal of landed homes as both prestigious residences and valuable long-term investments.
Source: https://www.edgeprop.sg/property-news/landed-home-price-growth-slows-down-18-2q2024
