Over the past year, demand for landed homes has gone through the roof. Around $2 billion in transactions have already been recorded for 1H 2021, with 245 sales.
This is the highest amount we’ve seen since the last peak in H2 2010; at the time, transactions totalled $2.4 billion. It’s been said many times before, but this increased appetite for landed property has definitely been brought upon because of the pandemic.
At Stacked, we’ve been getting many enquiries about landed property – more specifically, on leasehold landed property. Everyone knows the value of freehold, but many are apprehensive on how a leasehold landed property will perform. So in this piece, we aim to find out the general relationship between a freehold and leasehold landed property over the years:
A note on the following data points
For the following article, we looked at landed prices between 1995 to 2021 (Up till August 2021). The time period involves 69,781 transactions in total, with 55,087 being freehold, and 14,459 being leasehold. 235 transactions were excluded, as it was not indicated whether they were freehold or leasehold.
We have treated 900+ -year leases as being, for all intents and purposes, the same as freehold properties.
How have leasehold vs. freehold landed prices moved?
Land
Strata
Year
Land (Freehold/900+)
Land (Leasehold)
Strata (Freehold/900+)
Strata (Leasehold)
1995
$621
$546
$497
1996
$654
$567
$608
$496
1997
$633
$553
$510
$434
1998
$442
$404
$499
$290
1999
$488
$456
$450
$353
2000
$537
$490
$504
$414
2001
$466
$470
$414
$360
2002
$458
$404
$382
$345
2003
$429
$363
$346
$334
2004
$438
$372
$351
$318
2005
$444
$387
$407
$326
2006
$497
$410
$537
$332
2007
$631
$548
$622
$463
2008
$686
$593
$650
$454
2009
$702
$623
$565
$456
2010
$888
$825
$673
$561
2011
$1,091
$846
$741
$589
2012
$1,256
$981
$799
$652
2013
$1,351
$1,078
$903
$727
2014
$1,336
$867
$876
$707
2015
$1,295
$898
$772
$628
2016
$1,243
$894
$713
$591
2017
$1,265
$946
$773
$631
2018
$1,356
$911
$808
$679
2019
$1,408
$926
$771
$693
2020
$1,435
$913
$722
$676
2021
$1,540
$1,049
$839
$743
Freehold vs. Leasehold: The Singapore Landed Property Showdown
2021 Snapshot – The Big Numbers
- Freehold landed homes are pulling in an average of $1,540 per square foot.
- Leasehold landed homes sit at a more modest $1,049 per square foot.
- That’s a whopping 46.8 % price gap—think of it as the difference between a lifelong ticket and a temporary pass.
Back‑to‑Back 2010 Comparison
- In 2010, freehold landed averaged $888 psf.
- Meanwhile, leasehold landed hovered at $825 psf.
- The gap was smaller then, but it’s been growing like a pizza dough.
Cutting Through the Noise – Focusing on 1998/1999 Projects
- Because Singapore’s markets aren’t one‑size‑fits‑all, we cherry‑picked homes built in 1998 and 1999 to keep the comparison fair.
- Here’s how the price per square foot has evolved over time for those specific builds (in bold to catch the eye):
1998/1999
Freehold: ~$··· psf
Leasehold: ~$··· psf…
2021
Freehold: $1,540 psf
Leasehold: $1,049 psf
The Trend is Clear
Both types of property have seen value climbs over the years, but the gap between freehold and leasehold homes keeps widening. This gradual rise suggests that forever ownership (freehold) is still seen as the more valuable long‑term investment—just like that vintage vinyl you keep collecting while the newer CDs flare around you.
All About Freehold vs Leasehold – Which One’s More Fun?
Picture this: You’re scrolling through the Singapore property market and stumble upon some nifty numbers. Freehold strata homes are rocking an average price of about $839 per square foot (psf), while leasehold clusters or townhouses are hovering around $743 psf.
Why the Price Gap Looks Small (and Why It’s Actually Bigger)
- Area Matters – The price per square foot is calculated on the entire built‑up area, not just the land. That means a bigger footprint (including walls, balconies, etc.) pulls the average number down.
- Land Ownership? Not for Strata – Even though you own your unit, you don’t own the plot underneath. That’s why the land price gets excluded, making the psf figure a bit misleading.
Feeling Nervous About Leaseholds?
It’s pretty common to get that uneasy feeling when you think of leasehold landed properties, especially as they age. Unlike non‑landed (or freehold) houses that sit on their own land, leaseholds have a built‑in “end of line” suspense.
Here’s the trade‑off:
- E‑Bloc for Condos – Some leasehold condos might become part of an en‑bloc sale when the lease comes to an end. That’s like a big family reunion and a quick cash payout.
- Landlords’ Empty Hands – On the flip side, if the lease on a landed property expires, the state could repossess it or it may just be dealt with in a less glamorous way. No flashy retire‑ment deals.
Guillemard Road: A Real‑Life Example
Take the terrace houses on Guillemard Road (now NoMa) as a case study. Those charming homes had the chance for an en‑bloc sale, but the landlords over there thought better of it. That’s the unpredictable nature of leasehold land.
Where’s the Escape Route?
In many neighborhoods zoned strictly as landed by the URA, the government’s mission is to preserve local character. That means en‑bloc pitfalls are less likely because the council tends to keep these areas intact.
Bottom line: whether you’re eyeing a freehold strata home or a leasehold townhouse, every type comes with its own quirks. And if you’re hunting for that shiny, stable ribbon of ownership, keep your eye on the long‑term picture—because when it comes to property, patience (and a pinch of humor) is your best ally!
Why Leasehold Homes Might Be a Bit Tougher in the Long Run
Take a peek at URA’s control plans and you’ll notice that some landed plots get a special zoning label—others fly under the radar. These differences give a hint that certain areas are more likely to see new builds popping up sooner.
The Leasehold vs. Freehold Showdown
- Leasehold homes can face a rougher ride later on. The longer the lease runs, the more noticeable the differences become.
- As people become more aware of lease terms, the gap between freehold and leasehold is likely to widen.
Clustering into Townhouses and Cluster Housing
- When it comes to cluster houses or townhouses, the price gap isn’t as dramatic as it used to be.
- These grouped homes have a better chance of selling collectively (think “en‑bloc” sales).
- That’s unlike “real” landed properties, which often get stuck in the leasehold trap.
So, when you’re eyeing a landed property, keep an eye on the zoning details and the lease terms—your future self might thank you for the foresight!
General landed home prices by district
Got a Quick Peek at the PSF “Pricetag” by Region
Just a heads‑up: we didn’t pull every single district into this look‑at. A handful are left out because they didn’t have enough transactions to give a solid reading. Think of it like a quirky “almost there” on our data map.
Why the Numbers are Skewed a Bit
The $PSF calculation (price per square foot) is only derived from leasehold landed properties. Strata landed homes? We’re good to go beyond the numbers, so they’re on the sidelines.
The “Regional” Breakdown (in a Nutshell)
Since there are way too many districts to cram into one slick chart, we sliced them up regionally. Here’s a quick snapshot of what the PSF looks like across each area. (Remember: no full list of every district – just the big-picture spread.)
- Region A: Roughly $X per square foot
- Region B: Roughly $Y per square foot
- Region C: Roughly $Z per square foot
- …and so on.
Feel free to dive deeper into any of those regions to see the finer details. Happy exploring!
Property Price Roller‑Coaster: From Sentosa Surge to Current Trends
Why the Central Region Got a Shocked‑Out Price Swell
Back in 2006, the Central Region went from a quiet neighborhood to a hot ticket spot. The spike? A boom in demand for those luxury homes in Sentosa Cove. The listing prices shot up like a rocket.
But folks had to hit the brakes. The Additional Buyers Stamp Duty (ABSD) said “Not so fast!” and Sentosa’s allure faded. Prices started to plummet, sending a ripple across the market.
What the Numbers Really Tell Us
Instead of a gigantic table, let’s highlight the shifting beats over the years:
- 2006 – Central: ~$530 psf (strike price); East: $360 psf.
- 2008‑2010 – Central hit $860 to $1,170 psf (peak mania).
- 2011‑2013 – Prices continue climbing; Central tops out at $1,516 psf.
- 2014‑2016 – The top is now a messy peak; prices fall back to around $900‑$1,140 psf.
- 2017‑2021 – Central bounces back somewhere near $1,400 psf.
Recent Rumblings – District Power‑House
According to the real‑deal scouts, the hot 6 districts are: 19, 15, 28, 16, 10, 20. They’ve been making up 61 % of all landed home deals between 2018‑2021. Think of it like the premier league of real‑estate sales.
Where are the Prices Heading Now?
The entire market is drifting toward its own personal record high, but not quite on all fronts:
- East & North‑East – These slices already eclipsed their 2013‑2014 peaks.
- North & West – Currently hovering at $930 and $946 psf respectively, still shy of the $1,093 and $1,003 peaks from 2013.
- Central – Average sits at $1,465 psf, slightly below the $1,516 peak in 2013. But the buzz suggests it could make a comeback by early 2022.
Takeaway • The Thought‑Provoking Headline
With “in‑house” price struggles and a city‑wide shift, the Central Region’s story is about boom, burst, and the hope of a rebound. Dealers are watching the ball of possibility lightly, and there’s definitely a chance the market could “swing” back to its peak.
Price movement by unit type
Year
Detached House
Semi-Detached House
Terrace House
1995
$161
$385
$636
1996
$350
$541
$607
1997
$409
$647
$526
1998
$334
$413
$405
1999
$333
$416
$491
2000
$357
$450
$516
2001
$384
$432
$504
2002
$411
$339
$432
2003
$332
$307
$405
2004
$257
$353
$405
2005
$234
$357
$413
2006
$396
$400
$417
2007
$624
$545
$539
2008
$473
$597
$605
2009
$1,119
$589
$561
2010
$1,631
$772
$711
2011
$1,289
$736
$792
2012
$1,519
$911
$906
2013
$1,663
$1,046
$951
2014
$948
$821
$863
2015
$1,173
$860
$878
2016
$1,050
$791
$918
2017
$1,322
$895
$903
2018
$1,108
$885
$899
2019
$953
$844
$954
2020
$1,055
$864
$905
2021
$1,343
$989
$1,015
The price movement between unit types (detached, semi-detached, and terrace) shows less difference, compared to factors like freehold versus leasehold.
Why Bungalow Prices Are Bouncing Like a Yo‑Yo in Sentosa Cove
Borrowing from your favourite playground thriller, the real estate market just gave us the wildest roller‑coaster ride. Detached homes—basically the solo finds in real estate—are showing a lot more wobble than their semi‑detached or terrace cousins. Most of this excitement traces back to the Sentosa Cove neighborhood.
What’s Fueling the “Volatility” Game?
- Sentosa Cove’s flare: This luxury enclave has a tendency to set the price bar higher or lower in a blink. Think of it as a trendsetter that sometimes oversells and sometimes underplays its own value.
- Other units—no standout star: Detached, semi‑detached, and terrace houses are all dancing in roughly the same rhythm. None of them have broken out into a superior performance under current market conditions.
Are Bungalows a Better Bet?
Surprisingly, no. While bungalows show the biggest price swings, that volatility does not equate to higher returns or superior value when compared to the other types of units. In practical terms, the market hasn’t highlighted any clear winner among these property shapes.
Bottom Line: Keep Your Eyes on the Market
As we keep watching the real estate circus, remember that volatility is just part of the show. For buyers and investors alike, staying informed about developments—especially in Sentosa Cove—remains the best strategy to avoid being caught by surprise when the market twists and turns.
The good news for buyers is that, between Q1 and Q2 2021, momentum has slowed for landed homes.
What’s Happening with Landed Homes in 2021?
Picture this: the first quarter of 2021 saw land‑carrying properties hit a high surge—prices jumped almost 6.7% from the last quarter of 2020. Fast forward to the second quarter, and that growth ease up dramatically, only climbing by a modest 0.8%.
A Market That’s Still Hungry… But Slower
Even though buyers are still in the game, the overall buzz is that price hikes are cooling off. Realtors on the frontline have heard it straight from the sellers: “We’re actually nudging up our listings to a scale that’s a bit hard to swallow.”
Three Things You Should Know
- Demand hasn’t died. Buyers are still flush with cash and eager to snag a piece of land.
- Price normalization. Sellers, recognizing the persistent appetite, have begun to moderate their asking prices.
- Uncertainty on the horizon. The likelihood of a return to Heightened Alert—or other COVID‑related restrictions—could dent transaction volumes, especially after such a wild upswing last quarter.
Bottom Line
In short, the land market is taking a breather. Prices aren’t shooting to the moon anymore, but plenty of buyers are still feeling the high‑speed chase. Keep an eye out—if the briefcase of restrictions opens again, the filings could slow even further, turning the real estate terrain into a cautious, yet still spirited, buying spree.
If you’re looking for an investment, stick to freehold.
If you’re looking for a home or an indulgence, a leasehold landed property might make more sense.
Barring significant changes, it’s clear that buyers looking to leave a legacy, seek further asset progression, etc., should be looking at freehold landed. This should ideally be a “true landed” property, and not cluster housing; strata-titled landed homes can be a hit or miss, in comparison to their counterparts.
However, those looking purely at homeownership (e.g., you don’t care about resale gains, because you just want to live out your remaining years there) may want to pick leasehold.
A price gap of 34 per cent can make or break retirement savings – and there may be no difference in quality or lifestyle; a freehold unit doesn’t necessarily mean a better view or more amenities.
Finally, note that a return of foreign buyers could help leasehold landed to catch up
Why Foreign Buyers are Chasing Leasehold Homes in Singapore
Tempted by dreamy waterfront views and luxurious amenities, many foreign investors have found a loophole in Singapore’s housing rules: leasehold landed properties are the only option available to them on the mainland.
What the Rules Say
- No freehold! Foreign buyers cannot acquire freehold landed homes unless they get special permission.
- Leasehold is the default: foreigners land only on lease terms, never the entire plot permanently.
- Singaporean buyers, on the other hand, overwhelmingly go for freehold units.
Who’s Mainly Buying?
The primary demographic for leasehold landed homes is today’s foreign buyers, especially those eyeing Sentosa Cove—because who doesn’t want a view of the beach?
What Could Change the Market?
- Reducing the Additional Buyers Stamp Duty (ABSD) for foreigners might sweeten the deal.
- If foreign investment resumes post‑COVID‑19, the extra demand could close the price gap between leasehold and freehold lots.
- With price convergence, the restriction of freehold to foreigners could become less relevant.
Bottom Line
For now, the rulebook keeps foreign investors on the leasehold side of the market. But a shift in ABSD policy or a rebound in global buying power could shuffle the cards and make Singapore’s sweet landed homes more accessible to everyone.
