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Landed Homes Price Gains Stronger, Price Falls Not Necessarily Milder Than For
Non-landed Homes
By iCompareLoan Editorial Team
According to two industry veterans prices of landed homes in land-scarce Singapore are better
positioned to withstand market changes compared to their non-landed private counterparts.
SLP International research head Nicholas Mak and GPS Alliance chief executive Jeffrey Hong
noted that for this category of houses price declines are milder and price hikes more pronounced.
This trend is attributed to a combination of limited supply and an influx of wealthy immigrants.
Constantly challenged by the limited land in the country, the Singapore Government has assigned
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restrictions to the purchase of landed homes by foreigners and PRs. The former are limited only to
landed housing in Sentosa Cove; whereas the latter are allowed to purchase - up to a maximum area
of 1,393.5 sq m - on the mainland island as well, with the exception of the Good Class Bungalows
(GCB) area. Additionally there exists certain restrictions including a minimum occupancy period,
owner occupancy, and restriction to only one landed residence at any one time.
Examining the URA price indices from Q2 2009, during the early days of the property bull run, to
the first quarter of this year when the run has begun to lose steam, we note that true enough the
surge in prices for landed homes is marked higher than for non-landed ones during the initial
property boom between 2009 to 2011, and gradually moderated - most probably due to the
successive rounds of anti-speculative measures implemented by the Singapore Government.
As seen in Table 1, the quarter-on-quarter (Q-o-Q) spikes in the index for landed homes were more
than double than that for non-landed homes for most quarters between 4Q2009 and 3Q2011.
On the other hand, the price decline for landed residences versus non-landed residences is more
gradual only for Q12014 when the Q-o-Q change is 0.66 per cent as opposed to 1.30 per cent.
For the preceding quarter, the Q-o-Q dip for landed homes was 1.02 per cent outstripping that for
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non-landed homes (0.86 per cent) and overall residences (0.92 per cent).
Thus it remains to be seen if the scarcity factor of landed housing will ensure a softer landing for
this category of property during a bearish market.
Table 1: Price Indices For Landed vs Non-landed Private Homes
Period
All
1Q2014
4Q2013
3Q2013
2Q2013
1Q2013
4Q2012
3Q2012
2Q2012
1Q2012
4Q2011
3Q2011
2Q2011
1Q2011
4Q2010
3Q2010
2Q2010
1Q2010
4Q2009
3Q2009
2Q2009
211.6
214.3
216.3
215.4
213.2
212
208.2
206.9
206
206.2
205.7
203
199.1
194.8
189.6
184.2
175
165.7
154.3
133.3
Q-o-Q %
Q-o-Q %
Landed
Change
Change
(1.26) 241.50 (0.66)
(0.92) 243.10 (1.02)
0.42
245.60 0.29
1.03
244.90 0.33
0.57
244.10 0.45
1.83
243.00 1.80
0.63
238.70 1.14
0.44
236.00 0.43
(0.10) 235.00 0.09
0.24
234.80 0.13
1.33
234.50 2.36
1.96
229.10 3.57
2.21
221.20 3.90
2.74
212.90 5.50
2.93
201.80 7.74
5.26
187.30 6.24
5.61
176.30 8.29
7.39
162.80 8.32
15.75 150.30 14.91
(4.72) 130.80 (4.73)
NonLanded
204.7
207.4
209.2
208
205
203.5
200
199
198.1
198.4
197.8
195.6
192.9
189.7
186.3
183.4
174.6
166.4
155.2
133.9
Q-o-Q %
Change
(1.30)
(0.86)
0.58
1.46
0.74
1.75
0.50
0.45
(0.15)
0.30
1.12
1.40
1.69
1.83
1.58
5.04
4.93
7.22
15.91
(4.70)
Source: URA
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More specifically. we look at the trends of the URA price indices by the types of landed homes.
Table 2: Price Indices For Landed Homes By Types
Landed: Q-o-Q %
Period
Detached Change
1Q2014
4Q2013
3Q2013
2Q2013
1Q2013
4Q2012
3Q2012
2Q2012
1Q2012
4Q2011
3Q2011
2Q2011
1Q2011
4Q2010
3Q2010
2Q2010
1Q2010
4Q2009
3Q2009
2Q2009
Source: URA
244.2
250.3
252.5
255.9
256.7
255.8
251
246.1
247.1
250.2
249.2
247.6
239.8
230.4
212.4
196
183.5
167.5
155.2
134.2
(2.44)
(0.87)
(1.33)
(0.31)
0.35
1.91
1.99
(0.40)
(1.24)
0.40
0.65
3.25
4.08
8.47
8.37
6.81
9.55
7.93
15.65
(5.96)
Landed:
Q-o-Q % Landed: Q-o-Q %
Semi
Change Terrace Change
Detached
224
224.1
229.5
227.1
228.2
227.9
221.6
220.2
218.9
218.5
219.8
211.9
204
198.4
192.5
179
168.9
157.1
146
128.7
(0.04)
(2.35)
1.06
(0.48)
0.13
2.84
0.64
0.59
0.18
(0.59)
3.73
3.87
2.82
3.06
7.54
5.98
7.51
7.60
13.44
(3.60)
250.2
249.1
250.1
246.4
242.7
240.6
237.8
236
233.1
229.1
228.6
220
212
204
196.7
183.5
173.8
161.8
147.9
128.5
0.44
(0.40)
1.50
1.52
0.87
1.18
0.76
1.24
1.75
0.22
3.91
3.77
3.92
3.71
7.19
5.58
7.42
9.40
15.10
(3.89)
The more affordable overall price quantum for smaller homes (terraces) cushion it from sharp price
dips in a slowing market. Since Q2 2009, the index for terraces fell into the red only in two quarters,
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fewer than half of the quarters for detached and semi-detached homes.
In fact even in the latest quarter, prices for terraces rose after falling in Q1 2014, bucking the trend
seen for the other two landed house types.
However, there was no noticeable difference in price increases for the various landed home types
during the initial property boom in 2009.
Separately, for the two different types of non-landed homes: apartments and condominiums, we also
study the URA price indices trends.
Apart from other differences in building criteria, one of the key differences between apartments and
condominiums is the site area. The former has no minimum site area or mandatory communal
spaces.
Despite the usually more cramped site area of apartments, the Q-o-Q price increase is generally
greater for apartments compared to condominiums, at least going by the URA price indices as seen
in Table 3.
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Perhaps the relatively lower prices of these homes led to brisk demand, pushing up prices.
Table 3: Price Indices For Non-Landed Homes By Types
NonQ-o-Q % Non Landed: Q-o-Q %
Period
Landed:
Change Condominium Change
Apartment
1Q2014
4Q2013
3Q2013
2Q2013
1Q2013
4Q2012
3Q2012
2Q2012
1Q2012
4Q2011
3Q2011
2Q2011
1Q2011
4Q2010
3Q2010
2Q2010
1Q2010
4Q2009
3Q2009
2Q2009
220.1
222.2
225.6
226.2
222.7
220.6
215.3
212.9
210.9
209.5
209
206.8
203.1
201.4
196.7
190.8
181.4
175.1
159.6
137.4
(0.95)
(1.51)
(0.27)
1.57
0.95
2.46
1.13
0.95
0.67
0.24
1.06
1.82
0.84
2.39
3.09
5.18
3.60
9.71
16.16
(4.91)
197.7
201
201.9
199.9
197.1
196
193.6
193.2
192.9
194.1
193.3
191.1
188.8
185
182.1
180.2
171.6
162.4
153.1
132.2
(1.64)
(0.45)
1.00
1.42
0.56
1.24
0.21
0.16
(0.62)
0.41
1.15
1.22
2.05
1.59
1.05
5.01
5.67
6.07
15.81
(4.48)
Source: URA
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