Buying Landed Property in Singapore

Landed property as the name implied is a house on which the land below and surrounding it belongs to the owner of the house. Terraced houses, semi-detached houses and detached houses are examples of landed properties in Singapore . Condominiums or HDB on the other hand are non-landed as most of all the units are built on top of the units below and the owners of all the units share the whole compound and hold a strata title.

Landed Property Kovan refers to the land being owned by a citizen/entity in addition to the building as well. The ownership can be in form of a leasehold (usually 99 year-old lease) or freehold (usually 999 year-old lease. come on, who actually lives that long?). Private condominiums are usually counted as landed property as the land is bought by the developer, managed by a management committee made up of residents.

Non-landed property are usually strata-titled apartments. This is usually applicable to public housing in Singapore.

No wonder One of the most coveted types of real estate property in Singapore is the landed property. Peppered throughout Singapore among the towering HDB’s and Condos, landed properties can both inspire and act as a stark reminder of Singapore’s wealth gap. So how much do you actually have to earn to be able to afford a landed property? Below, we take a look at the costs are associated with owning a landed property and how much you need to earn to afford one.

How Much Do Landed Properties Cost?

Depending on the type of landed property you want to get, you can expect to pay between a few hundred thousand dollars up to hundren million.

Expected Costs of Maintaining a Landed House

In addition to the upfront costs of purchasing a landed property being higher, you should expect to pay more for everything from home insurance to energy bills. For instance, landed property owners on average spend 110% more on home insurance than HDB and Condo owners. Furthermore, you should also expect to spend a lot more on furnishings and renovations due to the sheer increase in size compared to the typical HDB and Condo.

Landed Properties Are Expensive But Not All Are Unattainable

For most Singaporeans, buying a landed property seems like a pipe dream. However, the affordability of any residential property depends on everything from luck to careful and long-term planning. For instance, while some people may have received a large inheritance or received the property as a gift, others may have planned and saved for a long time and got into the market at the right time.

Should you buy a condominium or a landed property in Singapore?

One of the most common questions which buyers ask is whether to purchase a condominium or a landed property in Singapore. There isn’t a straightforward answer as requirements differ between buyers. However, you should understand the pros and cons of owning a condominium and a landed property before you can decide which of the two better suits your needs.

Let us look at the pros and cons of living in a landed property

Pros

1) Pay for what you need

Everything is maintained by the landed property owner and thus you will only pay what you really need. If you would like to have landscaping in your compound, you only need to pay for that service with a landscaping company. There are many condominium owners who do not use the facilities even though they are paying monthly maintenance. In a landed property there is no fixed monthly maintenance fee.

2) Very exclusive and private

If you are someone who likes exclusivity, then living in a landed property is perhaps for you. There is no unit above or below you. The closest you can get is if you purchase an inter terrace and your neighbours and you share a common wall. Landed properties are also usually further away from dense residential built ups. If you desire to live in a low-density area, a landed property is just the place for you.

3) Limited supply

This point was previously mentioned. The supply of landed properties is going to get lower as time goes by. Currently, the only new supply of landed properties is either through subdivision of large plots of land or if the government were to release land zoned for landed properties. Even so, government released land are 99-year leasehold. Thus a freehold landed property is going to be more valuable as time goes by.

4) You are free to do what you want

If you want to make modifications to your property you are free to do so so long as you adhere to URA guidelines. You can also change the colour of your facade, install a lift or a swimming pool without having to seek permission of a management.