How much can I sell my landed property for?
Updated: Aug 10
I have a confession.
"How much can I sell my landed property for?"
This is the question my husband and I like to ask, even though we bought our property 3 years ago and have no immediate intention to sell our place. 😅
I guess many of us have that question at the back of our minds because we want to know whether we made a good deal when we bought earlier, and whether our property has appreciated over the years. It makes us very happy to know if our neighbours had sold their property at a higher psf than when we bought ours. Similarly, when we receive flyers from property agents with the latest transacted prices, we like to see how the market is doing in our area.
However, in reality, the price of landed properties depends on many factors. If a property on the same street is selling at $1,300 psf, it does not mean that our property will definitely be able to command that price, even though that price could be used as an indicative guage to a certain degree.
Let's compare landed prices to condo prices. Condo prices are relatively easier to predict based on the same stack since the size, layout and views are generally quite similar. The differentiation in the price usually lies in the floor level - the higher, the more expensive. So based on URA prices of previous transactions, we can usually get a pretty good indication of the prices of our own condo units.
However, for landed properties, URA only provides prices based on land size alone. Any other information e.g. total build-up size and condition of the property are not indicated in the prices, but often, those are important considerations that affect landed property prices. Hence, it is harder for a landed property owner to know how much his/her property is worth based solely on URA data.
On the macro level, demand and supply of the market plays a huge part in determining the price as well.
So what are the factors that determine the price of a landed property?
1. Land Size
If you own a landed property, that means you own the house you stay in as well as the land your house sits on. If you're not sure of the exact land size of your property, you can view the title and plan information of your own private property with your SingPass from MyProperty Portal on the URA INLIS website.
Generally, the larger the land size, the higher price the property commands.
2. Condition & Built up
The condition of the property definitely plays a huge part in determining the property price.
An original condition single storey terrace is most probably going to sell at a lower price that a 2-storey renovated one. Similary, a property that has been built to the maximum of its potential (e.g. built up to 3 storey plus attic in a 3-storey landed housing area) would command a higher price than one that has only been built to 2 storeys high in the same area. As you can imagine, a brand new property might also be more attractive to buyers and be able to fetch a higher price than the older ones, all other things being equal.
If you want to fetch a slightly better price when you sell your property, it might be worthwhile to invest a little to improve the condition of the place and fix up the place, e.g. a fresh coat of paint or tidying up the neglected garden.
All land in Singapore falls under three main types of tenures - 99-leasehold, 999-leasehold, and Freehold. When it comes to landed properties, freehold ones generally command the highest price. 999-leasehold are considered to be as good as Freehold so there's not much price differentiation there. Leasehold landed properties are generally available at lower entry price points. The reason being owners of leasehold properties ultimately need to surrender their properties at the end of the lease. These leasehold properties are generally less popular, though there are genuine, good reasons to buy leasehold landed properties as well.
Singapore is divided into three main market segments. These segments are Core Central Region (CCR), Rest of Central Region (RCR) and the Outside Central Region (OCR).
The Core Central Region (CCR) includes the prime areas of Singapore e.g. Orchard, Bukit Timah, Newton, (postal districts 9, 10 and 11), the Downtown Core (including parts of Bugis, south of Ophir Road), as well as Sentosa. This is where you can find the most high-end, luxury properties in Singapore.
The Outside Central Region (OCR) covers almost 3/4 of Singapore and includes areas such as Clementi, Hougang and Tampines. These areas are more for the mass market and of a lower price range as compared to the rest of Singapore.
The Rest of Central Region (RCR) is the intermediate, mid level region in terms of pricing, between the OCR region and the high-value properties in the CCR. Areas include Queenstown, Balestier and Little India.
Generally, the psf of properties located in CCR would be more than those in OCR. If you would like more bang for the buck, the same amount of money can usually get you a bigger landed property in the OCR than the CCR.
5. Developments in the Area
If there is an upcoming planned development in the area or if the surrounding area has been targeted as a key growth area for urban transformation by the URA, the properties in the area will usually be seen as good buys for future potential and prices may see a hike. Similarly, if there is an upcoming MRT or mega shopping mall in the pipeline, sellers can use this as a selling point to command a higher price for their properties.
6. Past transaction Prices
Even though landed houses are all unique, the past transaction prices are still important in determining the asking price when you want to sell your property. If it is a seller's market, then sellers may seek a price higher than the previously transacted prices. Buyers also look to the past transacted prices to guage whether they are buying the property at an "acceptable" range, or whether they are willing to pay more.
But then again, past transacted prices are used more as a guideline. Many other factors affect the actual asking and eventual transacted price of the property.
7. Limited Supply of Properties put up for sale
Landed properties are scarce. And in certain neighbourhoods, the supply of landed properties being put up for sale is low, e.g. Bishan landed estate. Being a mature estate, many residents have been staying there for many years and have no intention to sell their units because of how convenient the location is.
On the other hand, precisely because of how attractive the landed properties at Bishan are, being Freehold and located right at Bishan MRT and Bus Interchange, topped with the proximity of at least 3 popular schools, the demand is always high.
As a result, whenever there are properties put up for sale, they are snapped up. When market is on the up trend, there are often more than a few offers for the same property. Prices are definitely being pushed up when the supply cannot meet the demand. So if you are one of the lucky property owners holding a property that is in the high demand location, chances are you are able to sell at the price of your dreams.
8. Third party considerations
Sometimes there are 3rd party factors that will affect the prices of your property. For example, if your property is located near to a popular temple that gets crowded and smoky every Qingming festival, then there is a chance that this might affect your property's attractiveness and price.
On one occasion, I was helping a friend source for a landed property in a highly sought after neighbourhood. A perfect candidate came long, but the problem was the property right next to it. This neighbour was a hoarder who had all sorts of furniture/toys/gadgets/electronics stacked to the brim at his non-existent car porch and even spilled out to the curb and beyond. It was an eyesore to the area, and it definitely affected the sale of the property we were eyeing. The long and short of the story was, we gave up the "perfect candidate" because it is important to be able to live in peace with our neighbours. In this case, it was an unfortunate 3rd party factor that affected the property's sales.
Unique to landed properties, each one has its own character and charm. That is also why I love to help buyers and sellers in their house search. There is a perfect one waiting for each of us.
If you are thinking of selling your property but unsure about the asking price, feel free to give me a call at 8268 1409.