Many home hunters may hold the perception that possessing a landed freehold property, the rarest of land titles in Singapore, is way out of their reach. However, data from the Urban Redevelopment Authority’s real estate information system (Realis) showed otherwise.
In fact, the 10 cheapest freehold landed properties in Singapore were brokered for under $2 million last year.
A terrace house with a land area of 1,841 sq ft located on Westerhout Road in the central district of Geylang was the cheapest freehold landed property sold last year. The deal was transacted at $720,000 which worked out to be $392 psf. Another terrace house that sat on a land area of 893 sq ft in MacPherson Garden Estate was sold at $1,133,000 or $1,276 psf in September last year. Therefore, for a price of a suburban condominium, one could likely get a fairly small freehold plot in Geylang and MacPherson.
Property analysts pointed out that the value of landed properties lies in the land, rather than the dwellings built on them. As foreigners are generally not allowed to buy landed homes, prices and demand for landed properties are less volatile and speculative.
For some freehold landed properties in MacPherson Garden Estate, they are being marketed with prices that range from $1.6 million to $1.8 million. The plots measure between 883 sq ft and 1,050 sq ft. As these landed properties come with price tags below $2 million, the psf may be high but the total quantum is still affordable because the land size is small. As a result, the buyers are getting increasingly younger who are aged between 35 and 40 years old. In comparison to 3 years back, most buyers were aged above 40.
Experts cautioned for buyers to take note of the age, condition and location of the property as some homes may be single-storey, have very few rooms, come with dated designs, are poorly maintained and located far away from amenities and public transport. The lack of parking space or the quality of the neighbourhood could be attributed to the low asking price. For instance, some landed homes come with car porches that are too small for big cars.
In addition, buyers should be mindful of the sum of money they need to fork out to restore and maintain the property. For those who are looking at private leasehold landed properties, they should be more cautious. Generally, a property with a lease of less than 60 years would generate less demand in the resale market subsequently.