Buying Landed Property In Singapore – 5 Absolute Benefits

Singapore’s landed property market is an irresistible part of the real estate market. It offers luxury and exclusive living experiences for those who want a piece of land on the island of Singapore.

Terrace houses, townhouses, bungalows, and semi-detached houses are the landed properties of Singapore and are known for the prestige and privacy they bring their owners. The owners of landed properties enjoy space and tranquility.

In this Buying Landed Property in Singapore guide, we cover the fundamentals to consider when purchasing a landed property in Singapore: The type of properties to buy, where to buy, the current price, and the process.

Buying Landed Property in Singapore #1

Landed properties in Singapore come in various configurations, each with unique features and characteristics. From the Buying Landed Property in Singapore guide, here are the main types of landed properties you’ll find in the market:

1. Detached Houses

This type of housing includes dwellings that are independent structures and are not joined to any other structure of the same kind.

They give an optimum degree of privacy and seclusion and provide enough space for gardens, swimming pools, patios, and verandas.

Single detached houses generally cover more open space, ranging between 3000-15000 sq feet or more, and can be single or multi-story.

2. Semi-Detached Houses

Semi-detached houses are pairs of houses that share a common wall on one side. They offer a balance of privacy and community, with more space and land area than terrace houses but less than detached houses.

Semi-detached housing is normally found within land sizes of 2,800 to 4000 sqft and is well preferred by those persons or families that need some privacy but still want to be able to interact with some of their neighbors.

3. Terrace Houses

Terrace houses, or row houses, are connected to adjacent units on both sides, forming a continuous row. They are the most common type of landed property in Singapore, offering a more affordable entry point into the landed market.

Terrace houses have a lesser land area and usually have between 1,500sqft to 2,000sqft land, but hold the advantage of having a garden and landed living.

4. Bungalows

Bungalows are the most preferred and desirable of all the landed property in Singapore. They are described as single detached houses built on a lot at least 4000 sq. ft. in size and a maximum height of two stories plus an attic.

Bungalows are always in the prestigious residential zones, for instance, Nassim Road, Dalvey Estate, and Sentosa Cove, and command the highest prices in the landed market.

Buying Landed Property in Singapore #2

The landed property market in Singapore is rich and every quarter of the city presents unique features and quality of life’s benefits.

Here are some of the best locations to consider when buying landed property in Singapore in this Buying Landed Property in Singapore guide:

Districts 10 and 11 (Bukit Timah, Holland, and Novena)

Districts 10 and 11 are popular among those, seeking to buy landed properties because of their prime location, good schools, and upscale facilities.

The two regions, Bukit Timah and Holland, consist of large bungalows and leafy streets and are close to nature reserves. Novena offers a mix of terrace houses and semi-detached homes near top medical facilities and the Orchard Road shopping belt.

District 15 (East Coast, Marine Parade, and Katong)

Landed property buyers find District 15 particularly attractive because of its laid-back beach town feel.

The three most popular locations in Singapore include the East Coast, Marine Parade, and Katong, which have the following classes of landed homes with adequate access to the beach, parks, and recreational facilities; Terrace houses, Semi-detached houses, and Detached houses.

It is equally famous for food trails, historical and cultural importance, and connectivity.

District 19 (Serangoon Gardens and Hougang)

District 19 is a relatively mature residential suburban area with various landed homes at a more affordable rate than the prime districts.

Serangoon Gardens has terrace houses, a friendly neighborhood, and is close to the Chomp Chomp food center while Hougang has landed properties around parks, recreational facilities, and the new Cross Island MRT Line.

District 28 (Seletar and Yio Chu Kang)

District 28 has been attracting the attention of buyers and investors of landed property. This area is known for being peaceful with a countryside feel, that is quite far from the central business district.

Seletar has its black and white bungalows, aviation connection, and closeness to the nature area, while Yio Chu Kang has both terrace houses and semi-detached houses near the parks, schools, and the future Thomson-East Coast MRT Line.

Buying Landed Property in Singapore #3

Landed property prices in Singapore have remained over the years, thanks to the limited supply of land and the enduring appeal of landed living.

According to data from the Urban Redevelopment Authority (URA), the average price of landed properties in Singapore rose by 6.7% in 2021, outpacing the 3.1% growth in non-landed private residential properties.

The landed property prices also showed a rise and for the Q4 of 2021, prices were at $1,666 per square foot and segmented into detached dwells at $1,952 psf, semi-detached at $1524 psf, and terrace dwells at $1427 psf.

Some of the issues or factors that one may encounter when it comes to prices of landed properties include the price of the land, size of the land, age of the building, and condition of the building to some extent.

For example, freehold bungalows in Nassim Road or Dalvey Estate range from $30 million and above while leasehold terrace house in Yio Chu Kang goes for $2-3 million.

Buying Landed Property in Singapore #4

Buying landed property in Singapore requires the completion of several steps, that encompass assessing your eligibility and finances conducting due diligence, and completing the transaction.

Here’s a step-by-step guide to help you navigate the process in this Buying Landed Property in Singapore guide: 

Step 1: Assess Your Eligibility and Finances

Check your eligibility before buying a landed property in Singapore. Check factors like citizenship, age, and ownership of other residential properties.

Review your financial situation, by reviewing income, savings, CPF balances, and outstanding loans or mortgages.

Calculate your affordability based on the loan-to-value (LTV) ratio, total debt servicing ratio (TDSR), and other financing rules set by the government and banks.

Step 2: Contact a Property Agent and Lawyer

Hire a property agent who deals with the landed property market to assist in the search, bargaining, and even purchasing a property; hire a conveyancing lawyer specializing in the legalities of the transaction, including the sales and purchase agreement, title search, and transferring of title deeds.

Step 3: Search and Shortlist Properties

Work with your property agent to identify and shortlist landed properties that meet your criteria, such as location, property type, land size, budget, and specific requirements.

Visit the shortlisted properties in person to assess their condition, layout, and surroundings and get a feel of the neighborhood and community. Narrow your choices to a few top contenders based on your preferences, needs, and budget.

Step 4: Carry out due diligence.

Ensure that a proper search is conducted on the title, tenure, encumbrances, and planning restrictions of the property of your choice.

Check the past sales, market data, and property assessment records to justify the house price. Check for any flaws or deterioration that may be present on the property since these may lower the property value and may also be uncomfortable for people to occupy.

Step 5: Negotiate and Make an Offer

Work with your property agent to negotiate the price and terms of the sale with the seller, based on your budget, the property’s market value, and any specific conditions or contingencies.

Sign an Option to Purchase (OTP) and pay a token referred to as an option fee which usually costs 1% of the value of the intended property to formally offer to purchase the property.

Exercise the OTP within the option period (usually 14 days) by signing the sale and purchase agreement and paying the deposit (usually 5-10% of the purchase price).

Step 6: Secure Financing and Complete the Purchase

Secure financing for your landed property purchase by applying for a bank loan or using your CPF savings, subject to the applicable rules and limits.

Sign the sale and purchase agreement with your lawyer’s assistance. Then, coordinate with your bank and the CPF Board if necessary to complete the payment.

Pay the remaining balance of the purchase price and any applicable stamp duties, such as Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD), by the stipulated deadlines. Complete the transfer of ownership and collect the keys to your newly landed property.

Case Studies – Buying Landed Property in Singapore

The Tan Family’s Multigenerational Home

Mr and Mrs Tan, their two grown-up children and two elder parents have been residing in the 5-room HDB flat for years. The family later required a bigger house as it expanded, and their needs changed, culminating in a decision to acquire a landed property that would accommodate the family, especially the elders. There was quite a lot of searching but they eventually identified a 3,500 sq ft semi-detached house for $4.2 million in Serangoon Gardens.

It was spacious enough for each generation to live in its own area while at the same time providing areas for the whole family to congregate and spend time together. Due to strategic planning, cooperation, and considering their requirements from a long-term perspective, the Tan family managed to change into a landed home that included their desires, as well as helped them become closer as a family. 

Conclusion

Buying landed property in Singapore is a significant milestone and investment that requires careful planning, research, and execution.

It is possible to determine various types of landed properties, the best areas to invest in, and probable current prices, and delve into appropriate procedures to follow to attain the dream of being a landed homeowner.

When you are searching for a landed property, it requires you to work with trusted professionals, such as experienced property agents and conveyancing lawyers, so you can understand the market and help make informed decisions.

It is also vital to understand your financial capacity, housing, and long-term goals and approach the buying process with a strategic and patient mindset.