Kovan

Top Reasons Why Buying Landed Properties
Is Better Than Condominiums

Are you visiting Singapore and need a place to stay? Or you might be moving to a new area and need to build a home, and you need to make a crucial decision on whether to settle for a landed house or a condo. So, which is the best? It’s no doubt that anyone could get overwhelmed deciding which option is suitable since you might be having many considerations such as your family in mind.

The decrease in sizes of land and number of available parcels has led to the development of various residential types in Singapore. Among the commonly available types are landed properties and condominiums. The challenge comes in choosing a favorable one especially for buyers who can afford any of the two types of housing.

1. Less Monthly Expenses in Maintaining A Landed Property

Before you buy a property, it is important to consider the cost of maintaining it. While condos usually have fixed maintenance, charges paid every month to keep and maintain the offered facilities including swimming pool, gym, etc. and you could also be charged internal and external repairs depending on the needs of your home. But, if you own landed property, you don’t need to set aside money to cater for maintenance. This is because you are the sole owner and you can make the maintenance anytime. Furthermore, the maintenance cost of condos is normally higher than those of landed properties.

For instance, let’s consider a household with four bedrooms and compare the costs in both cases. While a two storey freehold landed unit that has one room on the first level and three on the second level would cost around SGD$2.4 million, a four-bedroom condo will cost approximately SGD$ 1.8 million. On calculating the monthly outlay figure, you will find out that it is higher by 20% for a four-bedroom condo in comparison to a two storey four bedrooms landed property.

2. Low Supply of Landed Properties

Over the past years, the number of the landed properties available on the market has increased by around 5.8% whereas non-landed properties have risen by 69%. From the findings, development of landed properties can only be improved if the government can release new land for development of landed properties or a subdivision of land.

However, freehold landed properties are scarce with more value since the government can only issue 99-year leasehold land. Additionally, not any plot can easily be subdivided and criteria for subdividing landed land is strict. Therefore, although larger parcels can be split into smaller ones, it reaches a point beyond which no further subdivision can occur.

Contrary, more condo units are on release on the market increasing their number. As the government is issuing available lands for development through bidding, lots of developers are aggressive to buy the land and use it to develop condos through collective sales. According to statistics from URA, there will be around 795 landed units and 23, 768 non-landed units between 2018 and 2022 in the market.

3. Landed Properties Have Higher Returns

According to the Department of Statistics Singapore, the prices of landed properties have increased the annual returns by about 2.5% while non-landed properties show an annualized return of approximately 0.4%. This indicates that the value of landed properties is increasing with time at a faster rate as compared to non-landed properties.

If the trend continues, then as the population rise in Singapore, shortage of landed properties is likely to occur which will positively impact their value. This is because the supply of landed properties will be limited as compared to condo availability.

4. Higher Value for The Money

Landed properties have better value for the money as far as built up space is concerned. For instance, a freehold two-storey inter terrace developed in a land measuring around 1, 800 sq ft requires a build-up area of about 2,200 sq ft. Such properties in Serangoon Garden or Kovan would cost approximately SGD$2.2 million translating to 1, 000 per sq foot. Contrary, the process of developing condos in such areas demands prices of around SGD$1300 psf which is excess. As a Singaporean in need of a large property, investing in landed property is wise.

Additionally, the number of millionaires living in Singapore is projected to reach 170,000 by 2022. This implies that the demand for landed properties and condos is going to increase as the population becomes wealthy. As a result, landed properties will become extremely scarce with an increase in demand. In fact, demand for landed properties is set to increase faster than the prices of condominiums.

Even though the choice you make depends on your preference and lifestyle, it is essential to do some research first. Data from the previous occurrences indicates that the price gap between condos and landed property is growing over time. Previously, condos used to be more appealing due to the availability of security and other essential facilities. But, today they are no longer quite attractive since not everyone requires some of the facilities offered. However, even if you are not using the facilities but stay in a condo, you still have to pay. This is why need to invest in the best housing and are on a budget then you should consider buying a landed property.

Types of Landed Properties in Singapore

Landed Properties

Landed properties are types of housing which offer personalized abode, spacious living quarters, massive pools/gardens, ultimate privacy in your private land.

These houses are the dream homes of many citizens of Singapore with high demand. Houses in this tier include:

  • Shop houses
  • Exclusive bungalows
  • Detached houses
  • Semi-detached houses
  • Terraced houses

Cluster Home

This is another hybrid housing design built to blend spaciousness and privacy of landed properties and the convenient condo-style facilities like gyms, swimming pools, etc. although they are still rare, most of such houses are upcoming. The cluster homes can also be home to bungalows, semi-detached housing, terraces, a mix of these and designed to share common facilities.

Difference Between End and Corner Terrace

Terrace house is another type of housing that features a row of mirror image houses which share walls. The first unit is referred to as the end terrace while the last unit is referred to as the corner terrace.

Conclusion

In this amazing setting, Serangoon Gardens redefines the luxury that comes with living in landed properties. If you are looking forward to owning a landed property then you should be inspired by these incredible features of Serangoon Garden to make a purchase today.

This could be the opportunity you have been waiting for to live your dream in a world customized to suit you. Why do I say so? Serangoon Gardens not only reflects your individuality, it also caters to your lifestyle demands.