Landed home sales volume up 21.3% q-o-q in 1Q2024: Huttons Asia
According to Huttons Asia’s latest quarterly report on the landed property segment, the market saw a total of 296 transactions (excluding Good Class Bungalows and cluster houses) in 1Q2024, with a total sales value of $1.7 billion. This marks a 21.3% increase in transaction volume and a 30.9% increase in total sales value compared to 4Q2023. On a y-o-y basis, transaction volume inched up 1.4%, while sales value fell by 5.9%.
Prices of landed homes also rose in tandem with the stronger volume, growing 2.6% in the first three months of the year. However, this growth was slightly lower compared to the 4.6% growth recorded in 4Q2023. According to Lee Sze Teck, senior director of data analytics at Huttons Asia, this may be a sign of “point of stabilisation” for landed home prices in 2024, following the 8% surge seen in 2023.
The most expensive landed home transaction last quarter by absolute value was the sale of a detached house at Braddell Heights Estate. The 12,594 sq ft, freehold property was sold for $18.8 million, or $1,493 psf on the land area.
In 1Q2024, freehold and 999-year leasehold properties were in high demand, making up 239 of the 296 transactions. According to Lee, most buyers prefer these types of landed homes for legacy purposes. The average price for a landed property with such tenures in 1Q2024 was $4.2 million for a terraced house, $6.7 million for a semi-detached house, and $11 million for a detached house. Landed properties with a 99-year leasehold were sold for between $2.5 million and $4.2 million.
Pollen Collection, the 132-unit landed housing development by Bukit Sembawang Estates at Pollen View, saw a movement of 17 units last quarter at an average price of $3.74 million or $2,183 psf on the land area. This project is the latest phase of Bukit Sembawang Estates’ landed residential enclave in Seletar Hills, following the first two phases of Nim Collection which were launched in 2018.
Looking ahead, Lee anticipates that the narrowing gap between sellers’ and buyers’ price expectations, along with more landed homeowners rightsizing, will generate more landed home transactions. He also forecasts a slightly higher total transaction volume for the landed market in 2024, compared to 2023. However, as prices stabilise, he expects landed home price growth to ease slightly from the previous year, climbing not more than 6% for the whole of 2024.
The bidding war for the new Novo Place EC site has ended with a whopping $348.5 million price tag. The joint developers were able to secure the coveted site with a record-breaking land rate of $703 per square foot per plot ratio (psf ppr). This sets a new benchmark for EC land rates, surpassing the previous high of $662 psf ppr at Bukit Batok West Avenue 8, awarded just last March in 2022.
In other news, Huttons Asia announced its support for local sports and green initiatives. This move is in line with the company’s commitment to giving back to the community and promoting sustainability. As Huttons Asia continues to thrive in the real estate industry, it remains dedicated to making a positive impact in society. With its continued efforts to support various causes and initiatives, the company is set to make a difference in the lives of many individuals.
Overall, the landed homes market in 1Q2024 showed positive signs, with increased transaction volume and sales value. With the expected increase in transactions and stable price growth, the future looks promising for the landed property segment. Huttons Asia remains optimistic and will continue to provide valuable insights and support to both buyers and sellers in the market. For those looking to invest in landed homes, Pollen Collection and other projects, such as Novo Place, offer great opportunities for homeowners and investors alike.