Landed home sales volume up 21.3% q-o-q in 1Q2024: Huttons Asia

The landed homes market saw 296 transactions (excluding Good Class Bungalows and cluster houses) in 1Q2024 with a total sales value of $1.7 billion, according Huttons Asia’s latest quarterly report on the landed property segment.

Compared to 4Q2023, this marks a 21.3% increase in transaction volume, and a 30.9% increase in total sales value. On a y-o-y basis, transaction volume inched up 1.4%, but sales value fell by 5.9%.

Prices of landed homes rose in tandem with the stronger volume, growing 2.6% in the first three months of the year. However, prices eased from the 4.6% growth logged in 4Q2023.

According to Lee Sze Teck, senior director of data analytics at Huttons Asia, this could signify a “point of stabilisation” for landed home prices in 2024, following the 8% surge recorded last year. The most expensive landed home transaction by absolute value last quarter 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, 999-year leasehold and freehold properties proved to be in high demand, accounting for 239 of the 296 transactions recorded. “Most buyers prefer 999-year leasehold and freehold landed homes for legacy purposes,” says Lee.

Last quarter, the price of a landed property with such tenures averaged at $4.2 million for a terraced house, $6.7 million for a semi-detached house, and $11 million for a detached house. Meanwhile, landed homes 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, moved 17 units last quarter at an average price of $3.74 million or $2,183 psf on the land area. The 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.

Moving forward, 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 forecasts total transaction volume in the landed market to be “slightly higher” for the whole of 2024, compared to 2023.

Nevertheless, as prices stabilise, Lee expects landed home price growth to ease slightly from the previous year, climbing not more than 6% for the whole of 2024