Landed home sales bounce back

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More landed homes were sold between January and April 2015 as prices dropped substantially from their record high, media reports said.

Based on government data, 316 landed homes were picked up by buyers during the said period, translating to a year-on-year increase of 15.3 percent. Prices in the first quarter also fell 7.2 percent from their peak in Q3 2013.

One of the major landed deals in the first four months of this year involved the sale of a furnished bungalow in Bishopsgate for a record price of $33 million or $2,190 psf in April.

“Supply of landed properties in prime areas is limited, and buyers may be trying to get some good deals as developers may have to sell to avoid Qualifying Certificate penalties,” said Singapore Christie’s Homes managing director Samuel Eyo.

Another reason why landed home sales have risen significantly is the likelihood that the Additional Buyer’s Stamp Duty (ABSD) for second-time purchasers will be revised later this year, noted William Wong, managing director of Realstar Premier Group.

Given this sentiment, many developers are acquiring sites for redevelopment – usually old bungalows – in anticipation that the market will heat up again once the houses are completed. These include sites at Oriole Crescent, Robin Road and Hillcrest Road.

“This year should be a good year for the landed housing market,” added Wong.

Douglas Wong, CBRE’s head of luxury homes also noticed that activity in the good class bungalow segment has picked up as well.

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