For many Singaporeans, the dream is to live in a landed house. A lot of us hope that someday, we can upgrade to landed property, with our own front yard.
On the other hand, due to their scarcity and size, they’re generally the most expensive residential properties in Singapore.
It also doesn’t help that there’s a higher demand for landed homes these days, especially as more are looking for bigger space and turning to landed properties.
For instance, even as prices for private properties rose at a slower rate of 0.7% last quarter, prices of landed properties increased by 4.2%.
Why freehold properties are more expensive than leasehold properties
When it comes to landed properties, most people prefer the freehold ones. At the same time, they tend to be more expensive.
No need to worry about lease running out
The good thing about freehold properties is that the land belongs to the owner in perpetuity. This also means that the property can be passed down to future generations.
On the other hand, for 99-year leasehold properties, when the lease runs out, the land ownership reverts back to the state. It’s just like what we’ve seen for the 60-year leasehold terrace houses at Lorong 3 Geylang. After the lease expired at the end of 2020, the land had to be returned to the state. And in the case of these houses, the government had plans to redevelop the area for public housing.
At the same time, take note that the freehold tenure doesn’t guarantee that you and your future descendants will own it for eternity.
We’ve seen the Land Acquisition Act taking effect, with the government acquiring freehold land occupied by terrace houses along Merpati Road and Jalan Anggerek for the redevelopment along Mattar MRT back in 2010. And more recently, there’s the acquisition of the freehold building along Thomson Road for the North-South Corridor last year.
Freehold properties have a higher price appreciation
Nevertheless, people generally still prefer freehold properties, especially when it comes to landed properties. This is because they have a higher price appreciation compared to leasehold properties, whose property value will eventually decrease over time as the lease runs out.
Over the past 15 years, prices of freehold landed properties have increased by 115.86%, in comparison to the 92.77% for their leasehold counterparts. And from the chart, we can see that the price difference is getting wider.
If you prioritise more on space and affordability, a leasehold home is your best bet. But if you want a house that can be passed down to another generation and can have a higher capital appreciation, a better option is to go for freehold.
At the same time, there are freehold landed properties on the market that are relatively affordable, and they don’t come with a S$10 million price tag.
Using 99.co’s search portal, we used the filter function by clicking on “freehold” to narrow down our options.
Afterwards, we sort them by the price.
Here are our picks of the cheapest freehold landed properties
We’ve also included the estimated downpayment and monthly mortgage instalments, which you can also find in each listing. These estimates are based on the assumption that you get 75% financing through a home loan with an interest rate of 2% and a tenure of 30 years.
4-bed house in Macpherson Garden Estate
Price: S$2.3 million
Downpayment: S$575,000
Estimated monthly mortgage: S$6,376
Floor area (built-up): 1,400 sq ft
Price psf: $1,642.86 psf
Built year: 1970
Macpherson Garden Estate is one of the estates to look out for to find the cheapest landed houses. In fact, we have three listings coming from this estate on this list.
First is this 4-bedder house. One highlight is that it has a wet and dry kitchen, so you have a separate space for when you want to do some heavy cooking.
We also like that it’s within walking distance to Macpherson Mall, where you can find various shops and an NTUC supermarket.
3-bed house in Macpherson Garden Estate
Price: S$2.388 million
Downpayment: S$597,000
Estimated monthly mortgage: S$6,620
Floor area (built-up): 1,500 sq ft
Price psf: S$1,592
Built year: 1970
This two-storey house may have been built in 1970, but it comes with a modern interior.
With a spacious bedroom, a guest room and an attic, it’s more suitable for a couple or a small family.
Likewise, this house is within walking distance to Macpherson Mall.
3-bed house Macpherson Garden Estate
Price: S$2.388 million
Downpayment: S$597,000
Estimated monthly mortgage: S$6,620
Floor area (built-up): 1,190 sq ft
Price psf: S$2,006.72
Built year: 1970
Here’s another house in Macpherson Garden Estate. But compared to the other two in the area, this inter terrace house has a smaller built-up floor area of 1,190 sq ft.
This house is located a little closer to the nearby Joo Seng neighbourhood. This means that besides the NTUC at Macpherson Mall, there’s a Prime supermarket within walking distance of the house.
3-bed house Thomson Garden Estate
Price: S$2.6 million
Downpayment: S$650,000
Estimated monthly mortgage: S$7,208
Floor area (built-up): 924 sq ft
Price psf: S$2,813.85
Built year: 1998
If you’re looking for a newer landed house, you can consider this 3-bedder. Built in 1998, it’s around 20 years old.
It’s also the ideal home for foodies as it’s within walking distance of the food haven along Upper Thomson Road. Plus, MacRitchie Reservoir is just a few bus stops away.
Another reason to check out this house is that it’s within 1km of two popular primary schools, Ai Tong School and Catholic High School. If you’re thinking of enrolling your kid in one of these schools, you can increase your chances of securing a place for your kid with this house.
5-bed house in Goodlink Park
Price: S$3.3 million
Downpayment: S$825,000
Estimated monthly mortgage: S$9,148
Floor area (built-up): 2,200 sq ft
Price psf: S$1,500
Built year: 1982
In terms of the price psf, this house is one of the cheaper freehold landed houses on this list. Given the number of bedrooms available, it’s suitable for multi-generational living.
According to the listing, this house also provides the potential to build higher. So you can consider it if you’re looking to redevelop the house.
Take note that it’s currently tenanted. So you can continue renting it out for some time before moving in.
Amenities wise, there’s Chong Pang City around a 10-minute walk, where you can find a market and a hawker centre.
3-bed house in Seletar Hills Estate
Price: S$3.388 million
Downpayment: S$847,000
Estimated monthly mortgage: S$9,392
Floor area (built-up): 1,699 sq ft
Price psf: S$1,994.11
Built year: 2013
One highlight of this two-storey house is its north-south orientation, so you won’t get the afternoon sun. Plus, it’s located on a quiet lane.
We also like that it’s pretty conveniently located. For instance, Greenwich V is just a four-minute walk, where you can find some F&B options and a CS Fresh (Cold Storage) supermarket.
3-bed house in Sembawang Hills Estate
Price: S$3.45 million
Downpayment: S$862,500
Estimated monthly mortgage: S$9,564
Floor area (built-up): 2,120 sq ft
Price psf: S$1,627.36
Built year: 1980
If you’re looking for a landed house to be rebuilt, here’s another one to consider. Unlike the other landed houses on this list, this house only comprises one storey. According to the listing, it can potentially be rebuilt into a two-storey house.
Another thing that stands out to us is that this house is within walking distance to CHIJ St Nicholas Girls’, perfect if you’re looking to enrol your daughter into the popular school.
4-bed house in Yong Seng Estate
Price: S$3.5 million
Downpayment: S$875,000
Estimated monthly mortgage: S$9,703
Floor area (built-up): 2,600 sq ft
Price psf: S$1,346.15
Built year: 1977
With a built-up area of 2,600 sq ft, this house is the most spacious one on this list.
What’s more, it comes with a spacious living and dining area, making it suitable for multi-generational living.
A bonus we like is that this house is pretty close to the MRT, with Kembangan MRT within a 10-minute walk.
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Would you prefer to live in a leasehold or freehold landed property? Let us know in the comments below or on our Facebook post.
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