Did you know that District 19 boasts the largest inventory of landed properties in Singapore? As of our latest data, our proprietary tool, Big Data, reveals some impressive numbers: approximately 800 detached homes, 3,000 semi-detached homes, and 7,500 terraced houses, making for a grand total of 11,500 landed homes in this district.
Unsurprisingly, these landed properties in Singapore have garnered significant attention from prospective buyers. Even if you weren't particularly fixated on the location, a quick search on PropertyGuru would likely show listings from District 19, simply because of the substantial concentration of available properties in the area.
4 reasons why District 19 is so popular
Let's break it down: Selling homes in District 19 is a breeze, and here's why:
Firstly, the abundance of available homes here translates to a vibrant real estate market. More homes mean more transactions, more activity, and ultimately, greater popularity. What's even better is that this activity is spread across a variety of estates, including both established and newer ones. Besides the beloved Serangoon Gardens, you'll find these homes in Hougang, Kovan, and Punggol.
Secondly, these estates are brimming with amenities. From the colossal NEX, the country's largest suburban mall, to charming spots like MyVillage in Serangoon Gardens, these areas offer a lifestyle that's perfect for families. And that brings us to our next point.
Thirdly, District 19 boasts esteemed schools such as Rosyth Primary School, Paya Lebar Methodist Girls School, Maris Stella High School, St. Gabriel’s Secondary School, and Mee Toh School. Plus, the International French School and Australian International School are in the vicinity, which might not immediately appeal to locals but could be a major draw for foreigners looking to rent your landed property. Lastly, District 19 is set to see one of Singapore's most exciting transportation transformations. The Cross Island Line, slated for completion in 2029, runs through District 19, with stations like Hougang, Serangoon North, and Tavistock right in the heart of the action. You might wonder, do landed homeowners really need these transit options when most of them drive? Well, yes and no. These conveniences are particularly important for growing families, who tend to be the typical residents of properties in Singapore.
How's District 19 performing, you ask?
Well, let's dive into the numbers for the period from January to September in 2023. Out of the 11,600 homes in District 19, there have been a total of 173 transactions, even in the face of a 20% price increase. And here's the intriguing part: this surge isn't driven by developers peddling new homes at sky-high prices. Of those 173 transactions, a staggering 97% were for resale landed properties, leaving just a paltry count of 4 new homes that were constructed and sold.
Now, according to SRI's Big Data, these landed properties exchanged hands at an average price per square foot (psf) of approximately S$1,600. But hold on, before you start imagining that a 1,600 sqft landed property will set you back a mere S$2.5 million, think again. In reality, a landed property in sought-after areas like Simon Road or Florence Road will easily command a price north of S$4 million, especially if there's already a structure in place.
Advice to buyers shopping in District 19
Let's provide some context to that 20% price increase. Despite the global uncertainties, including the conflict between Ukraine and Russia, which traditionally tends to slow down markets, prices in District 19 have still surged by this significant margin in the first three quarters of this year. The fact that people are willing to invest in the landed segment despite the premium prices speaks volumes about District 19's enduring popularity.
While we don't anticipate prices spiralling out of control, it's highly likely that the interest in District 19 will remain robust. Consider this perspective from Raama: in a market where new launches are hitting S$2,000 psd, even in less centralised locations, opting for a landed home at S$1,600 psf appears to be a more attractive proposition for buyers with the means. In fact, one could argue that it's undervalued.
For potential buyers, this means that securing a piece of the District 19 real estate pie is going to be more challenging than ever. Hesitate for even a moment, and prices could have already climbed, with the property you had your eye on snatched up by another eager buyer.
Advice to landed homeowners in District 19
Now, if you happen to be the proud owner of a landed property in District 19, you might be wondering whether it's the right time to make a move. Well, according to Raama, there are a couple of strategic options at your disposal.
Firstly, you can capitalise on the current hot market by putting your property up for sale. By doing so, you can secure a handsome profit and park it in the bank as a fixed deposit. With current interest rates hovering around 3.6%, that's a pretty decent return on your investment. This approach is precisely what an elderly couple, guided by their savvy children in banking and finance, recently decided to do. Plus, in the unlikely event that the property market experiences a 20% dip in prices, you can always forgo the interest and re-enter the market later. Remember, in Singapore, eligibility to buy often trumps affordability.
Secondly, there's another avenue to extract the value of your landed property without actually selling it – rebuilding. Many homeowners are embarking on this journey to maximise their future profits. If you're up for a new adventure, this could prove to be a remarkably astute move.
To illustrate, let's take a look at a client of mine who, five years ago, invested S$1 million in redeveloping their inter-terrace property. Today, a similar undertaking would set you back around S$1.7 million. That's an unexpected windfall of S$700,000 that they've essentially earned from their construction endeavours.
Advice to sellers in District 19
What's a reasonable price to expect when putting your single-storey landed property in the well-developed Serangoon Gardens up for sale?
As realtors, we field this query quite frequently because every neighbour along your stretch seems to have their own opinion on the ideal price tag for your property. It’s understandable, given that they have a vested interest in price movements within the estate. Jackie suggested a range between S$1,600 to S$1,700 per square foot (psf), but wisely cautions that the actual price hinges on several crucial factors. These include the potential buyer's intentions (like whether they plan to rebuild), the property's current condition, and its proximity to amenities within the coveted enclave of Serangoon Gardens.
With that said, we can't say for sure until we've had a chance to assess your property thoroughly. If there’s anything we’ve learned from meeting our viewers in person, it is that the landed segment is more unique than we think. One thing we can say with certainty, though, is that District 19 boasts the largest inventory of landed homes, yet only a mere 1.5% of them are changing hands. This statistic paints a compelling picture of its growth potential. If you're eager to be a part of this exciting story, don't hesitate to get in touch with me, Harvey Chia, at 91999141.
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