Is LANDED Property still the Crown Jewel ?
Landed properties are the most highly sought after type of properties in Singapore. For the uninitiated, buying a landed property, you own the land and not just the building.
Take a look at the article which was written in 2017 which indicates the prices of landed property is set to rise. What no one expected was the property prices to rise especially that of landed property in 2021.
Having said that let us explore the pros and cons of owning a landed property
Pros and Cons of owning a landed property
Pros
- The owner of the property owns the land and the property
- The Maintenance is extremely low as there are no facilities. However, modern day landed properties have a lap swimming pool and lifts.
Cons
- All maintenance works will be carried out by the owners
- Repainting works will be fully borne by the owner, unlike a condo where the cost is shared. Under the law set out by the BCA (Building & Control Authority), a building must be repainted once it is ever 7 years. Of course, this may be extended on appeal on a case to case basis.
Perhaps, owning land has always been the desire of humans. Oops, humans are the only species that are obsessed with owning land. Animals are also very territorial. Needless to say, wars are being fought over time for the sake of owning a piece of land. Having said that the purpose of this article is not about the history of owning land.
According to the Straits Times article on 28 Jan 2022, Landed home prices climbed 3.9 per cent in the fourth quarter, compared with a 2.6 per cent gain in the third, buoyed by wealth from new-economy sectors.
Grace Leong
Types of Landed Property in Singapore
1. HDB Landed Property
Similar to HDB, it comes with a 99 lease from HDB - Housing and Development Board. There are 2 main areas left that have HDB landed namely in the Queenstown area and Whampoa. Some of the landed HDB houses have balances leases of only 40 to 50 years, yet the take up rate remains high. Not only that, the prices have skyrocketed to over $1 Million. The only downside is that it has not parking lot in the house itself. The other factor is that the HDB landed is classified as a 3 room flat. The downside is the status of your house. The upside is as a owner of a 3 room flat, you are entitled to any rebates that the Government offers to this category of housing.
2. Strata Landed Property
Strata Landed Property is a hybrid of Landed housing together with condo Facilities. The most recently launched is Belgarvia Ace in Jan / Feb 2022. The price range was S$3 to S$4 Million range and almost fully sold. So if you are someone who wants a landed property with facilities, this is the type of landed property that may interest you.
3. Landed Property
There are basically 4 types of landed; Corner Terrace, Inter-Terrace, Semi-Detached, and Detached. From the categories, it is self-explanatory. Hence we would like to take some time to focus on Corner Terrace and Detached.
In a Terrace type of housing, the only method to walk from the front of the house to the bay is through the house. You will not be able to walk from the front side to the back yard via the garden as there is no garden.
In a Corner Terrace category, the owner can walk from the front of the house to the back of the house via the garden. The only difference between a corner Terrace and a Semi-Detached is part of a Detached House that has been been a is split into two plots of land and built for 2 Semi-Detached houses. On the other hand, a corner terrace house is at the corner end of the row of Terrace houses.
4. Good Class Bungalows (GCB)
Good Class Bungalows (GCB) are considered as the most desired type of housing amongst the wealthy and affluent. Below is the list of areas which I have extracted from URA Website. Previously, the price range for a GCB was about $30M ++, however it 2020 and 2021, the prices of GCB increased significantly. It has since increased to around $70M to $85M. From reports that has been circulating in the local press, the is the new young rich who are gobbling up GCB homes.
Traditionally, GCB are owned by tycoon from the Banking, Property and Oil & Gas Sectors. Recently, the new trend of owners comes from the Tech Sector or in particular, New Tech sector such as from Super App maker - Grab which provides Transport and Food Delivery Service and
In a Business Times article on 13 Jan 2022, Analyst expect GCB prices to ease after a good run in 2021.
Key Takeaways
Still confused about the types of landed properties that suits you? Well, it all boils down to 1 single factor - Your affordability for the type or any type of property.
Talk to one of our Consultants and we will be glad to explain further.