Landed housing properties in Singapore are worth far more than condominiums as they require ownership of land, which is a very valuable commodity in the country. Many homeowners seek to purchase real estate to provide them with long-term assets during economic downturns.
Generally speaking there are four main landed housing classes in Singapore. These are; good class bungalows, conventional landed houses, strata landed houses and Sentosa Cove landed houses. Although landed housing is in limited supply they are certainly considered to be a safer option than other forms of real estate, such as condos.
Strata landed properties are generally low-rise buildings that have the strata title rather than the landed housing title. They were introduced in 1993 and were initially designed for buyers that require more space and a property within a secure gated community. They also offer facilities that are associated with condos such as a swimming pool, gym and private parking area.
Restrictions for Foreign Buyers
Whilst a native resident of Singapore can purchase landed housing quite easily, there are restrictions in place for foreign investors. A foreigner that wants to purchase a landed housing property must adhere to a strict set of guidelines that have been set out by the Land Dealings Approval Unit (LDU). Applicants have to fulfil a certain criteria before they can be considered to become a landed housing homeowner. Most foreigners that are successful are only allowed to purchase one landed home and they must use the property for their own occupation.
Demand of Landed Housing
Due to the heavy rise in population over the past few years landed properties have been much more in demand. They have also increased in popularity due to a new government initiative that allows designers and architects to have much more leeway in the design of their homes. One of the main changes is that since 2010 many of the new landed properties have been granted permission to be built up to four storeys instead of three.
Future for landed properties
Because there are little advancements of the development of new landed properties the house prices are expected to survive any economic hits that could affect other forms of real estate. In addition to this because of the limited amount of foreign buyers, and due to the high demand of the properties themselves the prices are expected to remain high.
Landed properties in Singapore aren’t built for the casual buyer and they will require a certain amount of wealth if one decides to purchase. For buyers that would prefer the facilities and benefits of a condominium development but want to live the lifestyle that could be attained by purchasing a landed house, a townhouse may be more appropriate. A townhouse or cluster house is a cheaper alternative that fits somewhere in between. With a cluster house a buyer can purchase a property that has condominium status, such as facilities like a gym and swimming pool that is privately owned. Cluster house owners will also benefit from additional features that aren’t associated with condos such as a private parking space, yard, making them a more private and personal living space. In general, their tenure can be freehold or leasehold status. You may find out more on the differences between freehold versus leasehold property as a guide to home buying.