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Which districts are poised to see the highest growth for landed
properties?

Different districts have different growth potential across the

landed segment. Generally we observe a cohesive movement
across the segment when there is positive action in the market.
Depending on each individual's risk appetite, a difference in
consideration would be if D19 would suit the investment objective
to bank on the developing landscape. Or D15 with the established
demand with sought after amenities. Both districts in this scenario
could be good considerations for growth, as with other districts
and their respective factors.


Which districts are the safest bets?

Districts with better MOAT factors would be more secure options

to look into. Established districts like D11, D15 or D20 which have
sought after amenitites like popular schools, would continue to be
in demand because of higher MOAT factors. The more factors that
a certain landed property can fulfil, the better security it will have.
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Has construction costs/building time stabilised and what are the
construction norms now?

The estimated construction time for rebuilding is about 1.5 years

minimally from the planning stage, while the cost averages about
$400 PSF on the floor area. However, if you are considering to
rebuild your own home, it is a very personal affair. More
considerations will translate to longer rebuilding time and cost.


Budget of around $3.6M, better to buy one landed or two
condos? For investment. Already have primary residence.

With a budget of $3.6M, the options for a landed property might

be a little restrictive depending on the objective. If the objective is
for capital appreciation, looking into Category 1 homes which will
allow you to purchase a limited asset may be viable. However, if a
rental play is required to sustain this investment option, looking
towards 2 condos may provide better tenancy options to
maximise the investment returns.
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Do you think 3-4 years from now, a 4,000 land sqft semi-d in D19,
almost brand new condition (3.5 floors ~8K sqft built up) can exit
at $8M and above?

Other than the land size and build currency, there would be other
factors to consider as well if the mentioned landed property can
exit at a target price. Based on the attributes mentioned, 4,000
sqft of land for a Cat 3 semi-detached in D19 at $8Mil would be an
attractive option.


Is it like for like basis PSF for landed since landed PSF based on
land size and not built up like cluster and condo?

Yes, we generally consider PSF for landed houses based on the

land rather than the build up, as each landed home differs in their
build. Hence, the land PSF would be a better assessment of the
price. However, due to the unique nature of landed homes,
considering both the land PSF and build category of the home
would be a deeper level of assessment. Check in with your Real
Estate Consultant, they would be able to advise you better on this.
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Should I buy 1 landed using 2 names or 2 condos using individual
name instead?

The landed segment is a more limited asset as compared to a

non-landed option, which positions as a more favourable option.
However, when considering this route of either 1 landed property
or 2 condos, it would be prudent to consider the monthly
commitment. 2 condos would allow you to sustain at least one
mortgage with a rental on one of the condos. But the 1 landed
property that you would be living in, would not allow you to do so.


Can we still buy 99 LH landed with 70 years left?

Is it still worth to buy leasehold with remainding tenor of 69 years

still worth buying ?

One consideration for entering into a landed property with a

balance lease of 70 years would be to assess what other options
are available to you. If considering the leasehold landed is to
satisfy space requirement for your family, then a landed property
will be able to fulfil that. Or we could also assess if there are
options available to you to help plan the progression to an
eventual 999-year or freehold landed option.
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How long does it typically take for absorption ratio to shift from
green to red, and under what conditions does this reverse
course?

In Singapore, the Real Estate Market is generally moved by

conditions such as interest rates, cooling measures, borrowing
ability. With positive conditions, for example during 2021 - 2022,
the absorption rate performed well. However, in the current period
of 2023 - 2024 where we have seen interest rate hikes and cooling
measures introduced, there has been a reverse in performance.
While the shift was not immediate, our market has proven to be
quite reactive to different market conditions.


Why is the absorption level in D19 coming down?

And how about D20? How is the landed prospects looking for
D20?

D19 being one of the larger landed districts will constantly see
varying absorption rates due to the higher volume of supply, and
given a constant supply of buyers.

Price trends in D20, have been on the rise in recent years since
2020. But in recent quarters, prices seem to be in consolidation
phase, fluctuating between the $1800 - $2000 PSF average.
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How is the recession calculated? Growing wages?

Historically, one of the most accurate indicators of recession is

when the three-month moving average of the national
unemployment rate increases by 0.50 percentage points or more
relative to its low during the previous 12 months. Another practical
indicator is when we see two consecutive quarters of decline in
our GDP.


Bank stress test % coming down?

The stress test percentage is a tool that allows the banks to be

prudent with mortgage loans. With increased stress test
percentages, there seems to be little impact of buyer demand
given the performance over the last few quarters. Hence, even
with interest rate projected to be reduced gradually over 2024 and
2025, banks may not alter the stress test percentage to continue
their prudent approach.
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How is this buyer perference relates to the absorption rate?

The absorption rate allows us to gauge if a certain real estate

product is popular amongst buyers. This will help both the seller to
market the property in the best manner and buyers to make an
informed decision on the property they are considering.


Can I check whether it makes sense to rent out one room while
staying in the same landed? Dual-key landed?

If that is a viable option for you, then making your property work
extra hard to reap any extra capital is a recommended route.

How do we get the complete list of future proofing config?

A professional builder or architect will be able to advise you on

the different configurations that would be recommended to future
proof your landed home based on your requirement.
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When subdivide landed, any LBC involved?

If subdivide landed, any LBC involved?

The Land Betterment Charge (LBC) is applicable when there is an

increase usage of the land. If there is purely subdivision of a
certain landed plot, it may not be subjected to the LBC. But when
the plot is redeveloped into 2 homes from the original 1 home,
then LBC will be applicable.


Is it still worth to buy landed now as prices now is high?

Although prices are averaging at new peaks, the landed segment is

ultimately a limited supply product. While the price movement
may not be as drastic in the short term consideration, we do not
expect prices to revert back to pre-pandemic levels. As such, our
advice is to not time the market.
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After elections, does PLB think that newly minted citizens will be
targeting landed? Will this be substantial enough to shift landed
price index? Which districts will be affected if so?

Every year there is an average of 20,000 new Citizens minted.

While there is not enough data to analyse if the new Citizens are
involved in the landed market, we can assume that the new
Citizens each year may have little impact on the landed price
index. This is also considering that the number of new Citizenships
has been constant since 2008.


When you guys mention on the rebuilding cost, A&A cost. What
is included in the cost? Does it include carpentry, air-con, etc?

Rebuilding, along with Addition & Alteration works, generally refers

to works that involve amending the structural build of the landed
home. It does not include carpentry, air-conditioning, etc. These
would fall under renovation works.
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On speed of exit: Just now we were present-quarter absorption
ratios, which are more near-term view/numbers ya? Could we still
make useful longer term decisions based on these present day
ratios?

Indeed, the absorption ratios are more useful for shorter term
forecasting. However, different time periods would have different
ratios. A market with better market conditions may see
significantly better ratios. It would be more prudent to not only
consider the ratio, but the current market condition to make better
sense of the ratio in order to provide a longer term forecast.


Just top 4 bedder 2mil, their loan should still be significant, even
if sell $2.9M will have much cash to downpay for landed?

The repayment schedule is minimal for a new launch condo due to

the progressive payment scheme, which may allow you to reinvest
excess funds during the construction period to build up your
savings. This would differ from each individual accordingly based
on their financial preferences.
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Is it worth to buy freehold cluster now? All above $3.85M now?

With freehold landed properties averaging at the $4Mil entry

quantum, a cluster house under $4Mil would be an attractive entry
for those who are looking for an increase in living space. At the
same time, cluster housing would allow you to keep your
maintenance expenses lower as it is a shared cost amongst the
other residents in the enclave.


Low quantum is how much now?

Depending on the condition of the home, a Category 3 home below

the $4Mil quantum is the current recommended entry.


Is it wise to buy CAT 1 home at D23? Plan to renovate and stay
currently.

D23 is a developing district with anchoring potential from the new

Tengah Town and Jurong Lake District. A landed home will always
offer space that a non-landed home is unable to match. Hence, if
the objective is to have a larger living space then it could be a
viable option if you have exhausted all other considerations.
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Who to calculate the max GSF of a landed property? Are there
references you can share?

A landed surveyor or builder will be able to assist you in

calculating the max Gross Floor Area of your landed property. As
each landed property differs slightly, checking with the right
professional would still be advisable.

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