Share of HDB Upgraders Buying Landed Homes Declines, Overall Transaction Volume Surges 31.2%

According to ERA's latest landed residential market report, landed home transaction volumes in Singapore grew significantly by 31.2% in 2024 to reach 1,687 units, hitting a multi-year high. However, as landed home prices continue to climb, the proportion of HDB upgraders purchasing landed properties has seen a year-on-year decline.

Proportion of HDB Upgraders Buying Landed Homes Falls to Eight-Year Low

Data shows that HDB upgraders accounted for 16% of landed home buyers in 2023, but this share slipped to 14% in 2024—on par with 2022 and matching the lowest level in nearly a decade.

This downtrend began in 2017, when HDB upgraders made up as much as 22% of landed home buyers. Yet as landed home prices continued to soar, upgrading costs have become increasingly out of reach for many HDB owners.

Slowing Price Growth Draws More Buyers into the Market

Despite the declining proportion of HDB upgraders, the overall landed residential market remained vibrant. The moderation in price growth in 2024 spurred more buyers to enter the market. Figures show that 942 transactions were recorded in the S$2.5 million to S$5 million price bracket last year, a notable jump from 658 transactions in 2023.

Market analysts pointed out that because price tags for some non-landed private homes (such as condominiums) have drawn close to those of certain landed properties, some buyers opted to go straight for landed homes instead. In addition, owners who cashed out with healthy profits from their condo sales were in a better position to afford a landed property.

Transactions for landed homes priced between S$5 million and S$7.5 million also rose from 274 units in 2023 to 390 units in 2024, reflecting strong demand for landed homes within this price tier.

Terraced and Semi-Detached House Transactions Surge Over 30%

Looking at the breakdown across landed housing types, both terraced houses and semi-detached houses registered substantial transaction growth.

Terraced house transactions: Reached 1,005 units in 2024, up 34% from 751 units in 2023.

Semi-detached house transactions: Totalled 503 units in 2024, up 41% from 357 units in 2023.

Detached house transactions: Logged 178 units in 2024, up by just 5 units compared to 2023.

In terms of pricing trends, the median price for terraced houses rose from S$3.68 million in 2023 to S$3.93 million in 2024, while median prices for semi-detached houses held largely steady.

Although prices continued on an upward trajectory, the pace of growth slowed visibly. For instance, the price growth of terraced houses moderated from 9.5% in 2023 to 3.9% in 2024, while that of semi-detached houses cooled from 8.5% to 2.5%. This indicates that while prices are still rising, the market is stabilising, which in turn has drawn more buyers off the sidelines.

2025 Market Outlook: Prices May Rise 3% to 5%, Transactions Could Reach 2,000 Units

Looking ahead to 2025, analysts believe that landed residential properties retain solid growth potential amid a brighter economic outlook and the prospect of lower interest rates.

Landed home prices are projected to rise between 3% and 5% in 2025, with full-year transaction volumes anticipated to land between 1,800 and 2,000 units.

Analysts observed that while the share of HDB upgraders has dwindled, high-net-worth individuals, investors, and buyers seeking long-term stable assets continue to show robust appetite for landed homes. Consequently, the broader market outlook remains positive.

With sustained demand, prospective buyers may want to make their moves earlier to secure their choice property. How Singapore's landed residential landscape continues to unfold will remain an area well worth watching.