July 27, 2022
The landed home sale market has been on a roll over the past 2 years, with many owners selling their landed homes, booking decent profits amidst a buoyant housing market. Based on the latest quarterly statistics released by the Urban Redevelopment Authorities (URA), landed home prices are up by 2.9% compared to a year before, as of Q2 2022. Based on caveated data, there were 114 landed home transacted in June 2022, with a combined value of $811 million.
Upon analysis of each transaction and their respective profit, most deals had enjoyed gains and fewer than 10 deals were loss-making. By ranking of gross profit, the list of top 10 transactions was a mixed bag – consisting detached, semi-detached, and terrace homes that are located around the island.
Source: PropNex Research, URA Realis
The most profitable landed transaction for the month of June was for a Good Class Bungalow (GCB) plot along Andrew Road within the exclusive Caldecott Hill GCB estate. This transaction also happens to be the top landed home transaction in the month of June. The GCB was sold for a sum of $33 million, reflecting a unit price of $1,225 psf of land area. It was bought by the previous owner for $7.4 million in October 2005, which translates to a whopping $25.6 million in gross profit or 9.4% of annualized profit over a holding period of about 17 years.
The Caldecott Hill GCB estate has been seeing a few GCBs changing hands lately, following the wave of high-profile GCB deals in the market. One of which was the $50.2-million Olive Road GCB sale in April 2022, that was purchased by Wee Hian Nam, the grandson of property magnate, Wee Thiam Sew. The sale reflects a land rate of $1,800 psf on land area.
In addition, the estate received more public interest following the announcement on the redevelopment of the old MediaCorp Caldecott Broadcast Centre (CBC) which is slated to be developed by developer-cum-owner, Perennial Holdings, into 15 new GCB plots. With the area being rejuvenated, it has caught the attention of a number of buyers who have often overlooked this estate for other prestigious GCB areas.
Besides the Andrew Road GCB deal, the second top gainer of the month was for a detached home at Holland Heights in District 10. The property sits on an elevated plot with a land area of over 7,100 sq ft. It is situated in one of the exclusive Holland area GCB estates, and is well-served by major roads such as Farrer Road and Holland Road which take commuters to the Orchard Road Shopping Belt within 5 minutes and the Central Business District within 10 minutes. It was sold for $11 million by the owner, who had previously purchased the property in October 2007 for $4.4 million – the owner reaped a profit of $6.6 million or 6.1% of annualized profit from the sale.
In the city fringe area, the top most profitable transaction was for a terrace house located along Mugliston Road in District 15 (Marine Parade). The property which was previously purchased for $4.4 million in August 2014, was sold for more than double its purchase price at $9.2 million by the owner. This translates to a handsome profit of $4.8 million from the sale and an annualized profit of 10% over the span of 8 years. The terrace house sits on a plot of over 4,800 sq ft and is situated within close proximity to the East Coast shophouse enclave with numerous amenities as well as other commercial malls such as Katong Shopping Centre, i12 Katong, Roxy Square and Parkway Parade. Homes in District 15 have been experiencing a lift in the property values over the last few years due to the progressive gentrification of the area as well as the development of the Thomson-East Coast line.
Another transaction in the city fringe worth noting was for a terrace house located at Greenridge Crescent at the edge of Bukit Timah in District 21. While the property was sold for a relatively modest sum of $7.52 million, the owner stood to gain $3.8 million in gross profits, having bought the property for $3.7 million in July 2017 - this is equivalent to an annualized profit of 15.7% per year.
The most profitable deal in the suburbs for the month of June was for a detached house located along Chestnut drive within the Greenhill neighbourhood in District 23 (Bukit Panjang). The property was sold for an eye-opening sum of $21.08 million, translating to a tidy profit of $5.08 million for the owner, who previously purchased the property for $16 million in October 2016. The proceeds would give the owner an annualized profit of 5.1% over 6 years. The detached house sits on a plot with a land size of over 15,000 sq ft, which reflects a unit price of $1,351 psf on land area. The land rate for this transaction is a record high for the estate, with the last record being for a sale of another detached house in the same estate for $9.3 million in September 2021, which reflects a unit price of $1,300 psf on a land area of over 7,000 sq ft.
Based on the data, it seems that landed homes across the island have proved to be a good store of wealth and have reaped decent returns for their owners. While central area landed homes can be pricey, there are a number of landed homes in the outskirts which not only provide a landed home environment at a decent entry price, but also a good potential of property value appreciation.
If you are looking for high-end or luxury landed homes in Singapore, contact PropNex’s GCB Prestige Landed Services team today for buying opportunities and insights on the landed residential property market.
July 20, 2022
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