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Landed prices surge 13.3% y-o-y in 2021, fastest price increase in a decade: ERA

/ EdgeProp Singapore |

May 6, 2022 4:55 PM SGT

Last year, landed property transaction volumes increased to 3,676 properties, a 74% increase compared to 2020. (Picture: Samuel Isaac Chua/The Edge Singapore)

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According to a research paper by ERA Realty, landed property prices in Singapore surged by 13.3% y-o-y in 2021, making it the fastest price increase over the past decade.

Despite the economic disruption caused by the Covid-19 pandemic, landed residential prices expanded by 7.1% annually on average in 2020 and 2021. In comparison, landed residential property prices increased at a compound annual growth rate of 6% in 2018 and 2019.

Between 2018 to 2021, property prices in the landed housing segment also grew at a faster pace than prices of non-landed properties. Over this four-year period, the average capital values of landed houses increased by 28.8%, but the average capital values of non-landed housing such as condominiums grew by 24.2%.

The positive movement in landed prices also translated to higher transactions. There were 2,113 landed homes sold in 2020 which is 36.6% jump compared to 2019 which saw 1,547 landed homes sold. Last year, landed property transaction volumes increased to 3,676 properties, a 74% increase compared to 2020.

Rental demand for landed homes also picked up from 4Q2020. According to data compiled by ERA, rental rates of landed homes increased by 8.2% y-o-y by the end of 2021, compared to the 2.7% contraction in 2020.

The first three months of 2022 saw the landed housing rental index increase 5.3% q-o-q, making it the highest quarterly rate of growth among all property segments during that quarter. The boost in rental demand for landed homes is likely due to tenants’ strong preference for bigger-sized homes, says ERA.

But the upcoming stock of new landed homes in the pipeline will be low. ERA estimates about 160 new landed homes will be released over the next two years, but these will likely be fully absorbed within a year.

Upcoming landed projects include the 132-unit Pollen Collection at Nim Road, the 6-unit Spring Waters Villas in Sembawang, and a new landed housing development on the site of the former Caldecott Broadcast Centre which could house up to 26 Good Class Bungalows.

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