Jan 15 2021

Top 5 Districts for Landed Housing in Singapore

Sachika Shukuri

Residential homes are a huge ticket item, yet a necessity. We have to bear in mind that buying a home is more than just a residence for stay – it is also an investment. With so many different types of residential properties, what makes landed residential homes so special in Singapore? The secret formula to the landed residential area is location, location, and location.

With Singapore’s scarcity of land, these landed homes are deemed more valuable due to their increased rarity. By the rule of thumb in economics, this scarcity in landed properties in Singapore drives up prices over time. Hence, many view Singapore’s landed properties as a price-appreciating commodity that acts as an investment platform. Outside of the objective of it is a potential investment opportunity, the ownership of a landed property also acts as a trophy of one’s social status.

Thought Process of our Analysis

Our analysis relies on past transaction prices that were sold within each district. This is done to see the price trends from 5 years ago to today – and find out if there is a substantial and/or consistent price appreciation. Alongside analysis of the prestige and maturity of location, this article is written with the hope of helping you narrow down your ideal landed property by location; to determine if this landed home is worth the purchase with consideration of both its present and future value.

We have reduced the search criteria with the following:

a) Landed home has to be freehold

Freehold properties tend to hold a better price appreciation over time due to the absence of expiry on the land. Hence, value is more likely to be retained over time.

b) Landed home to be sold by land

This is our benchmark to set a common ground to more accurately conduct our analysis.

Disclaimer: With a simple 5-year analysis, it is noted that this article is written for understanding of the local real estate market, serving as a reference of past transacted data – which is not an accurate representation of future data.

The Analysis

Each district’s past transaction price from 2015 to 2020 was extracted, then averaged out by year. Based on the criteria of price appreciation over time, we have narrowed down 5 top landed residential areas (in no particular order) that are worth the consideration.

#1. District 9 (Orchard, Cairnhill, River Valley)

Lowest: $2,778 (2017)

Highest: $3,536 (2020)

Standard Deviation: 941

With the well-known fact that Singapore is the most expensive city to live in, District 9 is the epitome of this. As the country’s shopping hub and luxury haven, District 9 is home to many multi-millionaires from all over the world. This level of social prestige gives the district a promising investment value – alongside the prime locality in Singapore. District 9 is an example of great real estate value due to location and branding (especially in terms of reputable figures).

With 31 past transactions between 2015 and 2020, the scarcity in a number of freehold landed homes allow for it to pursue a high price per square foot. Despite the lowest price psf being $2,778 in 2017, it is comparatively higher than other districts.

#2. District 10 (Ardmore, Bukit Timah, Holland Road, Tanglin)

Lowest: $1,506 (2016)

Highest: $1,741 (2018)

Standard Deviation: 480

Known for being a landed housing haven, District 10 has been the ultimate residential real estate goal for many Singaporeans. With designated areas for Good Class Bungalow within the bungalow enclave of Nassim, Ladyhill, Rochalie, Bishopsgate and, Chatsworth areas, it adds to the prestige of District 10.

It had a steady appreciation rate for 5 years. With reputable schools such as Raffles Girls Primary School and Nanyang Primary School located within the vicinity, these landed homes are especially attractive to families with younger children.

#3. District 11 (Watten Estate, Novena, Thomson)

Lowest: $1,690 (2016)

Highest: $1,915 (2020)

Standard Deviation: 432

Served by the North-South MRT line at Novena MRT Station and Newton MRT Station, District 11 is within the core central region of Singapore.

We observe a steeper regression line, suggesting a steeper rate of appreciation for 5 years. This can be attributed to the provision of many amenities and facilities that make District 11 a very popular residential district.

Beyond the many educational institutions within the vicinity of Dunearn such as Singapore Chinese Girls’ School and Hwa Chong Junior College, District 11 is an area for residents to enjoy a myriad of activities. From malls such as Novena Square Shopping Mall to medical centres, it is sure to meet the residents’ everyday needs and wants.

#4. District 13 (MacPherson, Braddell)

Lowest: $1,169 (2016)

Highest: $1,369 (2019)

Standard Deviation: 324

Located under the Rest of Central Region (RCR), District 13 is located just outside the Core Central Region (CCR) districts 9, 10, and 11. Although costing relatively less compared to homes located in CCR, it holds a reputation for hosting high-quality bungalows.

With the expansion of the MRT lines, District 13 becomes more attractive due to its affordability without any expense on accessibility. This is especially attractive to people who strive to achieve a balance between their work and personal life.

Despite the slight fall in price psf from 2019 to 2020, District 13 has a generally more stable transacted price psf as seen by the lower standard deviation. If you are concerned over price while hoping for a general price appreciation for your future home, this could be a district for consideration.

#5. District 15 (Katong, Joo Chiat, Amber Road)

Lowest: $1,299 (2016)

Highest: $1,558 (2019)

Standard Deviation: 367

Although Singapore’s heritage is slowly disappearing in the name of modernization, the mature district tells us otherwise. It is an example of how Singapore has successfully found an architectural balance between the past and present.

District 15 brings about nostalgia, each building with a unique story to tell. Being home to historical landmarks that survived World War II, this is what distinguishes this district amongst others such as Districts 9, 10, 11, and 13.

Its location is classified under RCR due to its relatively proximity to the Central Business District area. Additionally, reputable schools such as Tao Nan School and CHIJ Katong Primary School are located in the mature district. This is a good district for families who wish to achieve a work-life balance.

The gradual price appreciation between the years 2015 to 2020 shows that there is a likelihood for freehold landed homes within this district to appreciate. With a relatively lower standard deviation of 367, investors may consider purchasing a residential home in the up-and-coming District 15.