Singapore Property | As the housing market continues to recover, there has been a surge in the sale of landed property in the 10 months of 2017 as prices of landed homes reduced to favorable levels since the peak of Q3 2013, reported Business Times.
Total units of landed homes sold between January and October 2017 were 1,513, a rise by 50% from 1,009 units sold over a similar period in 2016. See some strata-landed properties by clicking on Belgravia Villas and The Morris Residences.
(Living and Dining area of a corner terrace house in Belgravia Villas)
According to the analysis of URA Realis caveats data by Savills Singapore, transactions value increased by 41.1% to $6.1billion from $4.3billion.
The figure for the 10 months was higher than for the full 2016 where 1,187 units fetched $5.1billion.
“The increased transactions comes as there was a bigger drop in price for landed residential properties in comparison to non-landed private properties over the 15 quarters before Q3 when prices started to increase,” said Alan Cheong, research head Savills Singapore. Visit Nim Collection, this landed property will be launching soon.
Alan noted that landed homes have improved their attractiveness as the price difference between the 2 categories narrowed.
In particular, between the fourth quarter 2013 and the second quarter 2017, the landed home’s URA price index reduced by 16% while that of non-landed private homes reduced by 10.2%.
“It seems buyers have come back to the property market with a vengeance with the sentiments being kept up by the encouraging news concerning the sales volume, low land prices, the high number of en bloc millionaires looking for homes for replacements as well as the improving economy, said Tay Kah Poh, the executive directors, Knight Frank Singapore.
Cheong is of the opinion that the demand for landed homes in Singapore is to a certain extent aspirational since ownership of a landed property still has a high rank within the hierarchy of Singaporeans housing wants.
“In addition, the pent-up demand for buyers who want landed homes has been unbottled due to property cycle downturn that has been overextended,” added Cheong.