When is the ideal time to invest in residential real estate?

LANDED homes are some of the most coveted real estate assets in Singapore, due to their scarcity and exclusivity. As at Q4 2016, there were only an estimated 1,352 landed residential properties slated to be completed over a stretch of five years, between 2017 and 2021. There are a handful of landed residential projects with units yet to be launched, including a future development on a site along Lorong 1 Realty Park that is slated to be launched in April through the confirmed list of the Government Land Sales Programme.

The subset of homes with a freehold or 999-year lease tenure among landed properties is even more scarce. The recent quarter-on-quarter (q-o-q) uptick of 0.8 per cent in the Q4 2016 URA residential property price index for landed properties, and higher sales volume in 2016 further fuel optimism that the landed residential market is bottoming up. Other upcoming executive condo launches include Hundred Palms Residences ECYio Chu Kang EC, Inz Residence EC, Anchorvale Lane EC,  while existing ones include The Terrace EC, Brownstone EC, The Vales EC, Parc Life EC , Sol Acres EC, The Visionaire, Bellewoods EC, Signature at Yishun, The Criterion EC and NorthwaveHundred Palms Residences details and Hundred Palms EC show flat will be available shortly.

The prevalent view is that landed real estate is recovering faster than other property types, and this sentiment is supported by the sales figures. The number of landed homes transacted in 2016 was 1,380 units, close to the level in 2013. In contrast, the total number of private home sales concluded in 2016 was 30 per cent less than that in 2013.

Should we invest in landed homes amid the uncertain external environment?

Since the government implemented the total debt servicing ratio framework in 2013, the URA price index for landed residential properties has fallen by 14.1 per cent, a bigger drop than the 10.1 per cent decline for non-landed properties.