Singapore prime landed home sales hit a record S$8.9b in 2021

Transactions totalled S$4.3b in the second half of the year.

URA flash estimates reveal that the Property Price Index (PPI) for landed homes in Singapore rose 3.7% q-o-q in Q4 2021, bringing the total price index change for the whole year to a robust 13.1%.

According to Knight Frank, despite increased ABSD rates effective from 16 December 2021, the impact on the landed market is likely to be marginal. The stock of landed houses has remained stable and relatively unchanged for more than 25 years – accounting for just 19.3% of the whole private residential market today based on URA’s Q3 2021 data – a scarce residential asset class in high-rise Singapore. 

Here’s more from Knight Frank:

These homes are considered a secure source of investment. In H2 2021, a total of S$4.3 billion worth of landed homes were transacted, representing a 6.2% half-yearly decline from the S$4.6 billion recorded in the first six months of the year. The total for the full year was around S$8.9 billion, the highest since the data became available. 

Within the landed housing market, the continued allure of Good Class Bungalows (GCB) moved sales significantly in 2021. In the second half of the year, the GCB market recorded an estimated sales value totalling S$751.4 million as larger quantum deals in the third quarter led sales movement. 

The change of hands of the bungalow at 11 Queen Astrid Park for S$86.0 million by TikTok CEO Chew Shou Zi earlier in July 2021 was pencilled in as the second largest GCB sale for the whole year, followed by the sale of a GCB at 3 Bishopsgate for S$65.0 million in the same month.

Market outlook

Overall, the landed residential market performed well in 2021, establishing an all-time high sales transaction value. According to Knight Frank’s Global Buyer Survey, Singapore homebuyers showed a preference for larger indoor and outdoor space. 

Combined with the limited availability of landed homes, and with foreign ultra-high-net-worth families willing to pay rental premiums for such properties, especially GCBs, the landed residential market will continue to draw strong interest in 2022. 

Even though sales volume is projected to move at a more moderate pace as much of the saleable landed homes supply was taken up in 2021, housing prices in the landed residential market are expected to increase by some 5% for the whole of 2022.