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3 moves to buy a landed property in Singapore in 2022

Property agents have quite the reputation for picking favourable sentiments that would help them close the deal, but one narrative remains undeniable - landed property in Singapore is a segment that holds immense potential.

On the red dot, the limited number of approximately 70,000 homes speaks for itself. In 2022, this supply increased by merely 1,000 listings or so. Some are newly launched while others have been divided from existing plots.

Increasing demand for landed property in Singapore

As a remote workforce seeks out more space for their home offices and the mid-tier affluent demographic evolves into family dynamics, the demand for landed properties has increased beyond its supply. In what we call a “changing of guards”, one long holding cycle is often succeeded by another. Inventory and available listings are unlikely to increase over time or during lull periods as landed homeowners do not typically sell in correction cycles.

This strong conviction is music to the ears of landed homeowners and investors - a price increase. This has always been a segment we advise clients to actively pursue, trade-in, or hold as an investment position. Here’re 3 moves to do just that in 2022.

1. Be flexible with your wish list

To make that quantum leap from a flat or condominium unit to a landed home more achievable, consider trade-offs you can accept for a lower price. Size, tenure, residential district, rooms, home condition and the direction it faces are among the factors you can tweak. To perfectionists, this may come across as “settling for less”. However, approaching a traditional product with an unconventional strategy helps you secure a foothold in this market, which is really the end game.

2. Work around affordable options in the market

Remember, your first landed property may not look like your dream home, but the underlying land will never fail you. Every year in the landed market is a brand new one, and time is in your favour the moment your portfolio has land in it.

Start small with a terrace house within your means before working your way up to a semi-detached one. You would be surprised what clever space planning can do if you prioritise practicality over aesthetics and project future needs ahead of time.

If you’re in the market not for investment or legacy purposes but to accommodate evolving family sizes and lifestyles in the long term, consider right-sizing your purchase with leasehold listings that are approximately 30-35% more affordable.

3. Opt for A&A instead of reconstruction

The decision between A&A (additions and alterations) and reconstruction is best made prior to purchasing a landed property for one simple reason - it affects your initial outlay.

There’s no doubt that reconstructing and rebuilding makes for a personalised landed home experience, but costs and timelines have become notoriously unpredictable due to the pandemic. Unless you have the budget for a project manager or the time, energy, and patience to supervise, you would be better off improving an existing property that already has solid main structures.

A home, an investment, and a retirement plan

A landed home brings with it obvious gains in lifestyle, but at the end of the day, its underlying value has always been the land underneath. Holding this asset in your portfolio not only helps you level with rising inflation, but also gives you the option of downsizing in exchange for a neat profit in your retirement years.

Not sure if you’re in good stead to make such a move? Feel free to get in touch with me (Harvey Chia) for a second opinion at 9199 9141.


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