Singapore's landed properties epitomize a unique blend of exclusivity and sound financial investment, attracting discerning individuals and families seeking both privacy and long-term returns.
In this guide, we delve into the allure of these properties, characterised by their rarity in the market and their capacity to serve as a secure investment avenue for high-net-worth individuals (HNWI). Despite global economic fluctuations, Singapore's landed property market remains remarkably stable, driven by inventory constraints at the uppermost echelons of the real estate landscape.
Landed Properties in Singapore: An Exclusive and Secure Investment
Acquiring landed properties in Singapore remains a prestigious choice for affluent individuals and families. These properties are prized for their exclusivity, privacy, and tranquillity, appealing to discerning real estate buyers who seek both investment security and a lasting legacy for their families.
With the added advantage of offering robust long-term returns, they provide high-net-worth individuals (HNWI) the means to secure their financial standing. The ultra-luxury segment of Singapore's landed properties is currently witnessing unprecedented demand, driven by their rarity in the market and the ongoing growth of global wealth.
Singapore Landed Property Price Trends
While Singapore's non-landed residential inventory has experienced significant growth over the past two decades, the inventory of landed houses has seen only marginal expansion. As of 2022, landed homes constitute a mere 4.9% of residential properties in Singapore.
Despite limited availability, landed residential sales reached S$5.6 billion, demonstrating investors' commitment to these properties as long-term, multi-generational investments. The decline in sales in 2022 is attributed to market adjustments in response to supply and demand levels.
Inventory Constraints Drive Demand in a Stable Real Estate Market
Amidst global economic fluctuations, investing in high-end properties abroad represents a stable means of diversifying financial portfolios. Inventory constraints have led to growth in the uppermost strata of Singapore's prime real estate market, where the number of available landed properties is limited.
This has resulted in relatively stable price fluctuations in the ultra-prime real estate segment, showcasing the resilience of this coveted asset class.
Landed Homes Property Price Index Drivers
Affluent individuals continue to view landed properties as secure vehicles for wealth preservation. While prime property prices in global markets increased by an average of 34% over the past five years, Singapore's landed properties experienced relatively modest growth at approximately 32.8% within the same period.
In Q4 2022, Singapore's landed property prices rose by 0.6%, and for the entire year of 2022, they increased by 9.6%. Landed properties in Singapore offer spacious living, luxurious amenities, and favorable tax conditions, attracting high-net-worth individuals who often become Singapore citizens and further drive the landed housing market's upward trajectory.
For further reading, you can read our research where we analyzed 5-10 years of housing data, and uncovered the best landed property districts in Singapore.
Landed residences in Singapore come in diverse forms, encompassing colonial-era black-and-white bungalows to contemporary bungalows. These remarkable properties are primarily concentrated in esteemed residential districts like Bukit Timah, Sentosa Cove, and Nassim Road, where land values rank among the city-state's highest. Particularly, Good Class Bungalows stand in a league of their own in terms of prestigious landed properties.
For high-net-worth individuals (HNWIs), investing in landed properties in Singapore has remained an attractive strategy. These properties not only offer substantial potential for capital appreciation but also provide a luxurious lifestyle with exclusive amenities for multiple generations of the family. The presence of government-regulated safeguards makes Singapore an ideal destination for secure, long-term investments in available landed properties.