Strata-landed market gaining ground
Strata-landed homes have changed hands so far this year at prices averaging $646 per sq ft, report DOREEN GOH and ELIZA LEE
STRICTER development guidelines on the density of strata-landed housing developments, which were implemented on Feb 3, 2009, had effectively reduced the potential supply of new strata- landed homes. Notwithstanding, there are plenty of options available in the secondary market for those keen on owning a strata-landed property. Where should buyers begin their search? What kind of price range can they expect? And for those who still prefer new developments, what are some of the upcoming projects they can look out for?
Strata-landed housing are landed houses with strata-titles and common facilities. Most are found in cluster housing developments that are allowed within Designated Landed Housing Areas, and may comprise of solely bungalows, semi-detached or terrace houses, or a combination of these housing types. To a lesser extent, they are also known as townhouses within mixed landed/non- landed developments. Based on caveat records from the Urban Redevelopment Authority's Real Estate Information System (URA Realis), on Aug 26, 2010, 337 strata- lnded homes have changed hands so far this year at prices averaging $646 per sq ft, up 13.7 per cent from 2009's level and surpassing the previous peak of $621 per sq ft in 2007 by 4.1 per cent.
Strata terrace houses which traditionally dominated transaction activity has to date accounted for about two-thirds of this year's strata-landed transactions, with prices averaging $637 per sq ft. Another 22 per cent of the transactions involved semi-detached houses at an average price of $681 per sq ft, while the remaining 11 per cent were bungalows at prices averaging $632 per sq ft.
Unlike the past five years where most deals were sealed in the primary market, the majority (64.7 per cent or 218 units) of the strata-landed transactions so far this year occurred in the secondary market, with the potential to exceed the 237 secondary market transactions in 2009.
The heightened level of activity in the secondary market is unsurprising since the revised guidelines for strata-landed developments stipulating a minimum plot size per unit type will effectively reduce the potential supply in the market.
The number of new strata-landed units launched had declined from a high of 108 units in Q3 2009 to 42 units in Q2 2010, as the effect of the revised guidelines kicked in. As such, prospective buyers would need to warm up to the idea of house hunting within the secondary market.
What's available in the secondary market
The secondary strata-landed housing market offers prospective buyers many options in terms of location, price, housing concept/type, and strata area to suit varying budgets and lifestyle.
To date, there are some 120 developments supplying over 3,000 strata- landed houses in Singapore. The highest concentration of units can be found in Bukit Timah (684 units), Bedok (653 units), and Serangoon (527 units), while established residential areas like Ang Mo Kio, Yishun, and Novena house smaller pockets of strata-landed units.
While most are small-scale or boutique developments of less than 50 units, with limited facilities such as swimming pools, security, and Jacuzzis, there are about 10 large- scale strata-landed projects with over 100 units each, supplying around half of the estimated available supply of strata-landed houses in the secondary market.
These developments also offer more facilities such as swimming pools, gymnasiums, tennis courts, children's playgrounds, security, club houses, Jacuzzis, barbecue pits, spas, mini golf ranges, etc. Examples include The Shaughnessy (254 units) in Yishun, D'Manor (174 units) in Bedok, Hillcrest Villa (163 units) and The Teneriffe (148 units) in Bukit Timah, Horizon Gardens (157 units) in Ang Mo Kio, and Springhill (115 units) in Sembawang.
In terms of pricing, projects located in the Outside Central Region (OCR) are the most affordable. Using transactions in 2010 (as of Aug 26, 2010) as a guide, prospective buyers with a maximum housing budget of $1.5 million could consider terrace houses with strata area of less than 5,000 sq ft in the OCR, whereas those with a more generous budget of up to $2.5 million can consider semi- detached and detached houses in developments such as Aston Green in Hougang, Dalla Vale in Yishun, Sungrove in West Coast, Water Villas in Kovan, and Northshore Bungalows in Punggol.
As for those with a budget of above $2.5 million, they could extend their options to a wide range of terraces, semi-detached, and detached houses in high-end/luxury projects in the Core Central Region (CCR) with varying strata areas. Popular examples include Barker Terraces, Barker Ville, Estrivillas, Hillcrest Villas, Shamrock Villas, The Teneriffe, Villas@Gilstead, and Watten Residences in the Bukit Timah and Novena localities.
What's available from developers
If one is set on a first-hand property, he/she could still turn to new launches by developers. However, the numbers could be limited in years to come, as developers with the option of developing either non-landed and/ or strata-landed housing forms are likely to have a preference for the former which allows them to maximise the potential gross floor area of a site.
For those who do not wish to wait for future project launches, there are still unsold units for selection in some of the launched projects such as Five Chancery on Chancery Road, Mosella on Muswell Hill, Mt Sinai Residences on Mount Sinai Lane, Residences at Emerald Hill on Emerald Hill Road, Seven Crescent on Crescent Road, Sommerville Residences and Water Villas in Kovan.
As for those who prefer new projects, there are still some 600-plus units planned or in the pipeline. Major projects include Cabana (Phase 4) with 78 units; Watercove Ville (80 units); Nim Park, a proposed 121-unit cluster housing development by MCL Land; and a proposed 193-unit cluster housing development on Mount Rosie.
Conclusion
Strata-landed housing, in particular cluster housing projects, is expected to remain an appealing housing option to home buyers seeking the best of both worlds, ie a landed property with condominium-style facilities.
The expected healthy demand, coupled with the limited new supply in the pipeline, could translate into some potential upside in prices, as well as generate more activity in the secondary strata-landed housing market, where a wide selection of developments are available to suit varying needs.
Doreen Goh is a senior manager and Eliza Lee is a research analyst, research & advisory. Both are with Colliers International
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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