It’s commonly known that landed properties are the most expensive form of property. However, what’s less known is that the landed segment is a two-part market: in no other segment is the difference between freehold and leasehold so significant. In fact, leasehold properties can be so much cheaper, they even fall below $1 million. This makes leasehold landed a viable option for some pure homeowners, who have no interest in capital gains or rental. Here’s where you might find some of the cheapest options:
A shortlist filtered by price, size or tenure is a useful way to narrow your options, but it won't tell you which property is the best fit for your finances, lifestyle or long-term plans.
That's where the real evaluation begins: comparing the trade-offs between each option to decide which one makes the most sense for your situation.
Over time, that's also why we decided to work with agents who shared the same data-driven and advisory-led approach behind our editorial, consultants who could help readers think through decisions more objectively, rather than simply push transactions.
Today, the team has worked with more than 2,000 clients across over $5B in property transactions.
The discrepancy between freehold and leasehold landed property in 2021
As of end-June 2021, the average price of a freehold landed property in Singapore was $1,455 psf, up around 46.8 per cent from the same time in 2011. Leasehold landed properties, however, averaged just $980 psf, appreciating a more modest 19.1 per cent over the past decade.
The average total cost of a landed home, as of end-June, was about $4,593,588 if it’s freehold, and $2,984,631 if it’s leasehold.
This significant price discrepancy means that, for some buyers, leasehold landed property might be a reasonable choice.
To be frank, appreciation of leasehold landed property is not attractive, even if stacked up against non-landed counterparts (for reference, leasehold condos averaged $1,622 psf in end-June 2021, up over 52.6 per cent from the same time in 2011).
However, capital gains and rental are not the main reasons to buy leasehold. It’s simply that, at the given average, you could buy a 1,530 sq foot home for just around $1.5 million; a price that might get you a 930 sq. ft. unit in the condo market. These sums are attainable even by HDB upgraders.
That said, leasehold landed property could be well suited to retirees, or those who don’t need to leave a big legacy (e.g., the children have their own homes and don’t need to inherit). This sort of living space provides room for gardening, possibly small ponds, or housing that precious lifetime of art / antique collections.
Where can you find the cheapest leasehold landed properties?
The following table shows the cheapest leasehold landed transactions over the past 12 months, and the general neighbourhood they’re in:
| Land | Price | Area | Date | Address | Lease | Location |
| N.A. | $330,000.00 | 2,541 | 6-Nov-20 | 110 JALAN CHEMPAKA KUNING | 70 yrs from 19/08/1964 | Bedok |
| N.A. | $370,000.00 | 2,447 | 2-Dec-20 | 52 JALAN CHEMPAKA KUNING | 70 yrs from 19/08/1964 | Bedok |
| FUYONG ESTATE | $555,000.00 | 1,765 | 7-Jul-20 | 16 JALAN UJI | 99 yrs from 18/03/1947 | Bukit Panjang |
| N.A. | $940,000.00 | 3,950 | 20-Jan-20 | 29 BENG WAN ROAD | 99 yrs from 19/04/1949 | Kallang |
| SERANGOON GARDEN ESTATE | $1,020,000.00 | 1,948 | 20-Nov-20 | 7 JALAN CHULEK | 99 yrs from 26/02/1965 | Serangoon |
| N.A. | $1,200,000.00 | 3,974 | 7-Dec-20 | 18 JALAN PERGAM | 99 yrs from 01/01/1965 | Tampines |
| WESTVILLE | $1,230,000.00 | 1,729 | 29-Mar-21 | 44 WESTWOOD TERRACE | 99 yrs from 01/12/1994 | Jurong West |
| LOYANG VILLAS | $1,278,000.00 | 1,615 | 14-Jan-20 | 49 LOYANG VIEW | 99 yrs from 01/05/1993 | Pasir Ris |
| VILLA VERDE | $1,300,000.00 | 1,696 | 12-Sep-19 | 14 VERDE PLACE | 99 yrs from 22/03/1997 | Choa Chu Kang |
| UNIQUE GARDEN | $1,320,000.00 | 3,291 | 16-Oct-20 | 14 LORONG KISMIS | 99 yrs from 01/01/1972 | Bukit Timah |
Useful points to note:
1. Pasir Ris, Jurong West, and Choa Chu Kang are the main areas to scout, if you want a landed home at $1.5 million or below
The notable developments here are Loyang Villas, Villa Verde, and Westville.
Apart from their lower price point, a big attraction is that these landed developments are all below 30 years old – this should be more than sufficient to span at least one generation.
In addition, there’s still some chance of gains in the event the property is sold within the next decade (all three have records that show mostly profitable transactions).
Loyang Villas
Location: Loyang View (District 17)
Lease: 99-years from 1993
Current transactions indicates prices between $730 to $975 psf, with an average of $907 psf.
Last seen transactions at $1.5 million or below
| Date | Unit type | Unit size | Price PSF | Quantum |
| 21 Apr 2021 | Terrace | 1,615 sq. ft. | $917 | $1,480,000 |
| 29 Mar 2021 | Terrace | 1,615 sq. ft. | $917 | $1,480,000 |
| 3 Mar 2021 | Terrace | 1,615 sq. ft. | $929 | $1,500,000 |
There have been 83 profitable transactions, and six unprofitable transactions.
Villa Verde
Location: Verde Crescent (District 23)
Lease: 99-years from 1997
Current transactions indicates prices between $721 to $1,127 psf, with an average of $940 psf.
Last seen transactions at $1.5 million or below
| Date | Unit type | Unit size | Price PSF | Quantum |
| 10 Mar 2021 | Terrace | 1,638 sq. ft. | $897 | $1,470,000 |
| 28 Sep 2020 | Terrace | 1,615 sq. ft. | $873 | $1,410,000 |
| 23 Sep 2020 | Terrace | 1,615 sq. ft. | $910 | $1,470,000 |
There have been 98 profitable transactions, and 10 unprofitable transactions.
Westville
Location: Westwood Avenue (District 22)
Lease: 99-years from 1994
Current transactions indicates prices between $654 to $980 psf, with an average of $816 psf.
Last seen transactions at $1.5 million or below
| Date | Unit type | Unit size | Price PSF | Quantum |
| 4 Jun 2021 | Terrace | 1,720 sq. ft. | $814 | $1,400,000 |
| 20 May 2021 | Terrace | 1,619 sq. ft. | $902 | $1,460,000 |
| 29 Mar 2021 | Terrace | 1,729 sq. ft. | $712 | $1,230,000 |
There have been 230 profitable transactions, and 92 unprofitable transactions.
2. The cheapest leasehold landed property are not restricted to cluster housing
It’s true that cluster housing dominates lower cost landed homes, and some might argue that these can’t be considered true landed properties. However, not all cheaper landed options fall into this category.
In the list above, for instance, a unit at 24 Jalan Wajek (Bukit Timah) transacted at $1.47 million; although this was admittedly an old unit from 1952. Another newer example would be the unit at 42 Jalan Tari (Sengkang) – this unit is only technically leasehold. It has a 999-year lease, which may as well be freehold; and yet the transaction for the unit was just $1,695,560.
The challenge is spotting these potential outliers, which can be found in the most unlikely street corners and cul-de-sacs. If you’re interested in what’s available, drop us a note, and we can try to locate such properties in the desired area.
3. There are landed homes below $1 million, but expect most to make most – or all – of the transaction in cash
You’ll notice that the landed properties along Jalan Chempaka Kuning are as cheap as HDB flats, at prices like $330,000. This may seem mind-boggling, especially when the properties are near a famous foodie area like Simpang Bedok.
However, these properties are on 70-year leases starting from as far back as 1964 – that means the land will go back to the state as soon as 2034. Banks do not give out loans when there are 30 years or less on the lease, let alone 13. As such, you may have to cover the full amount in cash.
Likewise, most of the properties below $1 million are in the final stages of their lease. Fuyong Estate, for example, has a 99-year lease; but the lease commenced in 1947.
For properties with 40 years or fewer years remaining, some banks will decrease the maximum Loan To Value (LTV) ratio to 55 per cent. This means you’ll have to pay almost half the price as a down payment.
As such, these landed homes are something of a niche buy, even if they do exist.
4. Many of these landed properties have stairs; if you’re staying till your twilight years, you should check if lifts can be installed
This is a commonly overlooked issue. We’ve encountered many landed home buyers who move late in life, because they can no longer make it up and down the stairs.
Unless you have a helper to clean the house, help you move around, etc., features like a second or third storey, or roof access, maybe a problem late in life (who is going to clean and maintain them?)
If you’re buying an older leasehold landed home, you are probably intending to stay in it to the end. As such, you may want to consider properties that are not multi-storey, or in which a lift can be installed. Newer landed homes are often designed to accommodate such future needs; but landed homes dating back to the 1960’s or before can be hard to adapt.
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A shortlist sorted by one variable is a fast way to narrow your options, but the pick that's cheapest, biggest, or most convenient isn't always the one that fits your situation best.
If you'd like to discuss how this applies to your own circumstances, you can reach out for a one-to-one consultation here.
And if you simply have a question or want to share a thought, feel free to write to us at stories@stackedhomes.com. We read every message.
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