Landed home deals surge on pent-up demand

The number of landed residential property transactions spiked in the first 10 months of this year, putting the full-year number on track to be the best showing in five years.

Property consultants attribute the surge in landed housing deals to the ongoing broader recovery in the residential market.

They also note that prices of landed properties have fallen to attractive levels from their peak in the third quarter of 2013 to the second quarter this year. Continue reading

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Lorong 1 Realty Park landed housing site draws top bid of S$75.8 million

SINGAPORE – A private landed housing site in Lorong 1 Realty Park in Hougang has drawn bullish bids from 11 developers.

The top bid for the 99-year leasehold site came from a consortium of Fantasia Investment (Singapore), Sun Renwang and Yang Xinping at S$75.8 million or about S$525.58 psf per plot ratio, said the Urban Redevelopment Authority at the close of tender on Thursday.

It was S$13.8 million or about 22 per centmore than the second-highest bid of S$62 million tabled jointly by Singhaiyi Investments and Haiyi Wealth. Continue reading

Unearthing the gems in landed homes

LANDED homes are some of the most coveted real estate assets in Singapore, due to their scarcity and exclusivity. As at Q4 2016, there were only an estimated 1,352 landed residential properties slated to be completed over a stretch of five years, between 2017 and 2021. There are a handful of landed residential projects with units yet to be launched (Figure 1), including a future development on a site along Lorong 1 Realty Park that is slated to be launched in April through the confirmed list of the Government Land Sales Programme.

The subset of homes with a freehold or 999-year lease tenure among landed properties is even more scarce. The recent quarter-on-quarter (q-o-q) uptick of 0.8 per cent in the Q4 2016 URA residential property price index for landed properties, and higher sales volume in 2016 further fuel optimism that the landed residential market is bottoming up.

The prevalent view is that landed real estate is recovering faster than other property types, and this sentiment is supported by the sales figures. The number of landed homes transacted in 2016 was 1,380 units, close to the level in 2013. In contrast, the total number of private home sales concluded in 2016 was 30 per cent less than that in 2013.

Should we invest in landed homes amid the uncertain external environment? Continue reading