Singapore’s 2022 prime landed home sales fall short of 2021’s record S$10b

Overall sales only hit S$5.6b in 2022.

According to a Knight Frank report, due to scarcity in high-rise Singapore, prices of landed homes continued to rise only held back by sellers’ reluctance to place their homes on the market, a situation similar to prime non-landed homes. 

Based on flash estimates released by URA, the Property Price Index (PPI) for landed homes rose a further 0.5% q-o-q in Q4 2022**, bringing the total increase to 9.5%** for the year. 

Here’s more from Knight Frank:

A total of S$2.5 billion landed homes were transacted in H2 2022, a decline of 20.3% half-yearly from S$3.1 billion in H1 2022. Overall sales value for 2022 at S$5.6 billion was 43.8% down from the record high of almost S$10.0 billion last year. And even though buyers are willing to offer decent price premiums to incentivise landed homeowners to sell, most were decidedly averse, with some deterred by the 15-month wait-out for downgraders looking to purchase HDB flats. 

Nevertheless, the average unit price has risen some 24.4% to S$1,813 psf (on land) since H1 2020 when the pandemic began to drive demand for larger living spaces by homebuyers with housing aspirations.

Within the landed housing market, the average land prices of Good Class Bungalows (GCB) continued to increase, gaining 27.1% to S$2,108 psf in H2 2022 from the S$1,658 psf in H1 2022 and 25.3% y-o-y. However, transaction volume shrank three times from 60 in 2021 to 20 in 2022. Due to the substantial price quantum characteristic of such rarefied luxury homes, the high volume recorded in 2021 cannot realistically be duplicated over consecutive years. 

Nonetheless, a bungalow on 27,000 sf of land in the Belmont Park GCB Area (GCBA) transacted twice in less than three years, setting the top price of S$55.5 million (S$2,056 psf on land) in the second half of 2022. The unit land price was 60.9% higher than the previous transaction recorded in October 2019. Another prominent reported sale was a GCB on 18,255 sf of land at Cluny Hill by Shi Yonghong, co-founder of Haidilao, from Dr Lee Wei Ling for S$50.0 million (S$2,740 psf on land).

Market Outlook

With many landed homeowners holding back, transaction activity is likely to remain subdued in the first half of 2023. Additionally, the increasingly uncertain economic outlook might also shift some buyers to the side-lines. As such, while the increase in prices in the landed residential market was 9.5% for the whole of 2022**, price growth in 2023 is expected to be more modest. 

Despite this, the long-term outlook for landed homes in Singapore remains positive. Especially with the growth of the electric vehicle population, these homes afford owners an exclusive charging point right at their doorstep. 

**based on flash estimates announced on 3rd January 2023.