Strong demand for local landed homes as Q2 transaction volumes surge

Landed home transaction volume in Singapore surged in the second quarter, rising by 45.8% quarter-on-quarter and 58.1% year-on-year to reach 430 units.

A report on the local landed residential market in Q2 noted that the surge in sales volume was primarily driven by narrowing price expectation gaps between buyers and sellers.

The spike in transaction volume also led to a significant increase in total transaction value. In Q2, total transaction value reached $2.3 billion, up 46.4% quarter-on-quarter and 54.7% year-on-year.

In the first half of this year, total landed home sales hit 725 transactions, representing a 28.5% year-on-year increase; total transaction value reached $3.9 billion, 18.5% higher than the same period last year.

Analysts: More transactions expected in H2

With demand for landed homes remaining resilient and buyers waiting for the right prices before committing, more transactions could take place in the second half of the year.

The report pointed out that landed home price growth continued to moderate, rising by just 1.9% in Q2, down 0.7 percentage points from the previous quarter. Landed property prices are stabilising, with full-year price growth projected not to exceed 6%.

The majority of landed transactions in Q2 involved 999-year leasehold and freehold properties. The average transacted price for 999-year leasehold and freehold terrace houses was $4.2 million, semi-detached houses averaged $6.6 million, and detached houses reached $12.5 million.

Prices for 99-year leasehold landed homes ranged from $500,000 to $6 million, while 999-year leasehold and freehold landed properties transacted between $2.2 million and $32.5 million.

Semi-detached houses saw largest sales volume surge in Q2

Among Q2 transactions, semi-detached houses recorded the biggest increase in sales volume, jumping from 85 units in the previous quarter to 136 units—up 60% quarter-on-quarter and surging 81.3% year-on-year. This was largely driven by softening prices for semi-detached houses, with unit prices declining 1.9% from $1,811 psf in the prior quarter to $1,776 psf.

The report showed that the most sought-after landed homes were located in Districts 10, 15, 16, 19, and 28. District 19 recorded the highest transaction volume, with seven 99-year leasehold deals and 72 transactions for 999-year leasehold and freehold properties. District 19 encompasses areas such as Serangoon, Hougang, and Punggol.

In Q2, the lowest-value landed transaction was a semi-detached house along Jalan Chempaka Kuning, which sold for just $500,000 as it had only 10 years remaining on its lease. The highest-value transaction was a freehold detached house on Jalan Tupai, which changed hands for $32.5 million.