Sales Of Landed Property Increase Despite C-19

A new phenomenon is seen. Sales of landed property have increased despite Covid-19.

When the COVID-19 pandemic hit, it was thought that the economy would go into a recession and that the real estate market would crash. Since people in Singapore were tightening their purse strings, buyers would have been more hesitant to make a purchase. With this in mind, it is a wonder why some buyers entered the market and have been driving sales of landed property up.

Against all odds, the property market was surprisingly strong. After a short drop at the start of the pandemic, it bounced back strongly, mostly because of strong demand for private property.

credit:creation

Sales of landed property are at an all-time high:

Property Price Index For All Residential Properties:

4Q 2020	1Q 2021	Property Price Index %
157.0	162.2	+3.3%

Based on data from the Urban Redevelopment Authority (URA) for the first quarter of 2021, the price index for all residential properties went up from 157.0 in the fourth quarter of 2020 to 162.2 in the first quarter of 2021, which is a +3.3 percent increase.

Property Price Index For Landed Property:

4Q 2020	1Q 2021	Property Price Index %
173.8	185.4	+6.7%

Landed property made a big difference in these numbers. Over the same time period, the price index for landed property went from 173.8 to 185.4, which is a 6.7 percent increase. This was partly because the number of transactions for landed property went up by a large percentage over the past year.

Property Price Index For Non-Landed Property:

4Q 2020	1Q 2021	Property Price Index %
153.3	157.1	+2.5%

On the other hand, the increase in the price index for non-landed property from 153.3 to 157.1 was only 2.5 percent.

So, it can be seen that the prices of landed properties rose much more quickly than the prices of non-landed properties in general, and that landed property transactions were partly the cause for the rise in the price index as a whole.

Plausible reasons for increased sales of landed property:

But why are so many people buying landed properties during this epidemic? Here are some ideas about why that might be happening.

Rich buyers are getting more optimistic. At the start of the pandemic, a lot of people were worried, but now they are less worried. In 2020, a lot of people in Singapore lost their jobs. Most of the people who lost their jobs were foreigners, but many wealthy or high-earning Singaporeans were mostly unaffected.

Not everyone’s income has been affected the same way by the recession. Some industries, like travel, tourism, and retail, have been hit harder than others. Freelancers, gig workers, and people who work in the service industry are among those who have been hit the hardest.

But despite the pandemic, a lot of other businesses have been doing well. They are the businesses dealing with  virtual and technical information services, crucial retail businesses, the insurance and finance sectors, and more.

Consequently, there is likely to be a huge market of rich purchasers, and it is probable that these individuals acquired private residences in the preceding year.

Since vaccines are now available and the economy is expected to get back on its feet in a big way, many wealthy buyers are feeling good about their finances. Before the economy starts to grow again, the pandemic has been a great time for these buyers to get a great deal on a new home or an investment property.

Need for spacious houses:

Because of the COVID-19 pandemic, people in Singapore are staying at home more than ever. With more people working from home and the Ministry of Education (MOE) saying that home-based learning will continue in some way even after the pandemic, it’s never been a better time to have a big house.

Also, because of the fear of the Circuit Breaker period in 2020, when everyone will have to stay home, people in Singapore now need more space for themselves. More bedrooms, bigger shared areas, and a garden are even more appealing now that people know they are good for mental health.

Less worry about getting to the city centre:

Lack of access to public transportation, which used to be one of the biggest problems for people who lived in landed property, is less of a problem now that people can work and learn from home and drive less.

This feeling is also shown by the fact that the price index for non-landed private properties in the Rest of Central Region went up by 6.1% over the last three months. The Core Central Region, on the other hand, only saw a very small increase of 0.5%.

This suggests that Singapore buyers may care less and less about being close to the center of the city. This could be because more people are working from home.

More people want to be alone:

The COVID-19 pandemic has made people want to get away from crowds even more. Staying in a landed home will offer the kind of privacy which a large condo development cannot provide.  Condo residents are forced to talk to a lot of people every day because bigger condo complexes house thousands of people.  Therefore, the shared facilities will see a lot of residents using them.

The c-19 pandemic has made people more concerned about cleanliness especially when the facilities are shared amongst many residents.

People who don’t want to talk to their neighbours want more than ever to live in landed property because it gives them privacy and freedom.

Condo Living versus Landed Living:

During the Circuit Breaker period, tensions were high, and some condo residents were fined for not following COVID-19 rules like not wearing a mask or using the pool. Residents couldn’t even walk their dogs or work out in the common areas of their condos.

Even though the Circuit Breaker period is mostly a bad memory, condo residents still have to wear masks in common areas, and their social visits are watched closely by other residents, who could report them to the police if they don’t act right.

Residents of landed properties, on the other hand, have far fewer rules to follow. They don’t have to wear a mask to use their gardens.  Dog owners can also make it easier for their pets to get exercise by letting them run around in their own yards or on the street outside.

Residents are also less likely to hear complaints from their neighbors when they have people over. This is because they have more space to enjoy and there are fewer people living close by.

Are landed houses the best place to live right now?

The COVID-19 pandemic has not only shown how nice it is to live on a piece of land, but it has also made living in a high-rise more stressful and limited. Singaporeans are rethinking what an ideal home is, just like people in bigger countries are moving out of cities and into the countryside. Since landed property looks better than ever compared to condominiums, it shouldn’t be a surprise that buyers with lots of money are choosing it more and more.

Contact Us

Any enquiries, please call our hotline: +65 61002500 | Return to HOME