Landed house prices surge 13.3% y-o-y in 2021, fastest rise in a decade: ERA
Landed property prices in Singapore surged by 13.3% y-o-y in 2021, making it the fastest increase over the past decade, according to a research paper by ERA Realty.
Despite the economic disruption caused by the Covid-19 pandemic, landed residential prices expanded by 7.1% annually on average in 2020 and 2021. In comparison, landed residential property prices increased
at a compound annual growth rate of 6% in 2018 and 2019.
Between 2018 and 2021, prices in the landed housing segment also grew at a faster pace than prices of non-landed properties. Over this four-year period, the average capital values of landed houses increased by 28.8%, but the average capital values of non-landed housing such as condominiums grew by 24.2%.
The positive price movement also translated to more transactions. There were 2,113 landed homes sold in 2020 — a 36.6% jump from 2019 when 1,547 landed homes were sold. Last year, landed property transaction volume increased to 3,676 properties, a 74% increase from 2020.
Rental demand for landed homes also picked up from 4Q2020. According to data compiled by ERA, rental rates of landed homes increased by 8.2% y-o-y by the end of 2021, compared to the 2.7% contraction in 2020.
The first three months of 2022 saw the landed housing rental index increase 5.3% q-o-q, making it the highest rate of growth among all property segments during that quarter. The boost in rental demand for landed homes is likely due to tenants’ strong preference for bigger-sized homes, says ERA. — Compiled by Timothy Tay