Knight Frank noted that 253 landed homes were transacted in the second half of 2020, up from the 108 units shifted in 1H 2020 and the 126 units sold in 2H 2019.
With demand for landed homes remaining healthy, Knight Frank expects to see increased activity in the landed homes segment this year as many potential homeowners look to seize the low interest rate environment and high liquidity.
Landed home prices are also forecasted to grow in 2021 amid the increased demand such properties.
URA real estate statistics showed that landed private home prices declined 1.6% in Q4 2020. For the whole of 2020, prices increased 1.2%.
Knight Frank noted that 253 landed homes were transacted in the second half of 2020, up from the 108 units shifted in 1H 2020 and the 126 units sold in 2H 2019.
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“As a result, the market segment registered sales amounting to some $2.5 billion in 2H 2020, suggesting that the gap between buyers’ and sellers’ expectations had narrowed.”
It pointed to the growing trend of working from home as one of the key demand drivers for landed private homes, as prospective buyers considered bigger floor areas as well as close proximity to amenities like parks as needful for their housing requirements.
“Other contributing factors included elderly retired sellers, experiencing empty nest syndrome and facing challenges with their landed homes as they grow older, such as navigating staircases as well as the effort and cost needed to upkeep the property,” it added.
Meanwhile, sales in the prime non-landed residential segment increased 34.2% to $919.5 million in the 2H 2020 from $685.1 million in 1H 2020.
This comes as 143 units were sold in 2H 2020, an improvement from the 87 units moved in 1H 2020.
“Nonetheless, the continued travel measures restricting the inflow of visitors into the city-state prevented potential foreign investors interested in purchasing homes in Singapore from physically viewing these units, resulting in an overall 20.4% year-on-year decline in sales of luxury homes compared to 2019,” said Knight Frank.
In 2H 2020, the average unit price of luxury non-landed homes fell 21% to $1,916 per sq ft (psf) from $2,425 psf in 1H 2020.
Suggested read: 21 Cheap Freehold Condos in Singapore Under 600k
Among the notable deals posted include the $62 million sale of a super penthouse at Wallich Residence, which spans 21,108 sq ft.
Knight Frank said the decline in prices and transaction volume was expected given the recessionary environment caused by the COVID-19 outbreak.
“However, as Singapore continues to be an oasis for investments due to the stable political environment as well as the extensive measures implemented to mitigate any recurrences of infections, the demand for luxury homes in the city-state is projected to grow in 2021 as investible properties have moderated to comparatively more affordable price points,” it said.
“This is expected to strengthen foreign buyers’ confidence in the market, which could translate into greater sales of prime non-landed residential units once the COVID-19 vaccine distribution proves to be successful and travel restrictions ease.”
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