Table of contents:
- Ownership and land tenure
- Types and variety
- Cost and financing
- Space and privacy
- Facilities and amenities
- Lifestyle and community
- Security and maintenance
- Location and accessibility
- Investment potential
- Regulations and restrictions
- Resale market and liquidity
- Environmental and sustainability factors
- Flexibility and customisation
- Conclusion
The Singapore property market offers a variety of residential options, each catering to different needs and preferences. Among these, landed houses and condominiums are popular choices. Whether you’re a first-time homebuyer, an investor, or someone looking to upgrade, understanding the differences between these property types is crucial.
This article provides a detailed comparison to help you make an informed decision.
Ownership and land tenure
Landed houses in Singapore are typically classified as freehold or leasehold. Freehold properties provide indefinite ownership, while leasehold properties have a tenure of 99 or 999 years. Owners of landed houses have full ownership of both the land and the structure, giving them significant control and flexibility over the property.
Condominiums are typically leasehold (99 or 999 years), with some freehold options available. Leasehold properties are more widespread due to limited land availability. Condominium owners have the title to their units, while the common areas are jointly owned by all residents.
Types and variety
Different types of landed houses include terraced houses, semi-detached houses, detached houses (bungalows), and Good Class Bungalows (GCBs). Each type offers different amounts of space and privacy and allows for customisation and architectural variety, enabling owners to tailor their homes to personal preferences.
Read this: Good Class Bungalow (GCB): What’s the big deal about Good Class Bungalows in Singapore?
The condominium market includes a wide range of options, from mass-market condos to mid-tier and high-end luxury condos. Condo units are available in various sizes, including studios, 1-5 bedroom units, and penthouses, offering different configurations to accommodate diverse needs and budgets.
Cost and financing
Landed houses usually have higher prices than condominiums because of the land factor, especially for freehold properties and good-class bungalows. Owners encounter increased property taxes and maintenance expenses, and obtaining financing usually entails larger down payments and loans.
Read this: Price gaps between property types: Why are they different?
Condominiums typically provide more cost-effective options in comparison to landed properties, which increases their accessibility to a wider range of potential buyers. The monthly maintenance fees are allocated for the maintenance of communal facilities and public areas, and financing is generally more convenient due to lower initial payments and more manageable loan amounts.
Space and privacy
Landed houses offer increased living space and private outdoor areas. They may also include swimming pools, providing greater privacy due to their plots and lack of shared walls.
Read this: So you want to install a CCTV in your home in Singapore…
Condominium units tend to be smaller and have less privacy because of shared walls and common areas like corridors and lobbies.
Facilities and amenities
Landed houses generally do not come with built-in amenities such as gyms or pools unless they are added privately by the owner, usually at an extra expense.
Condominiums offer shared amenities including swimming pools, gyms, playgrounds, BBQ pits, and clubhouses. The management is responsible for regular maintenance of these facilities to ensure they are well-kept.
Lifestyle and community
Landed houses are often chosen by individuals or families seeking a more private and family-oriented lifestyle, with social interactions usually limited to immediate neighbours. This is unless the house is located within a landed estate that organises community events.
Condominiums emphasise community through organised events and activities, encouraging social interaction. They are well-suited for individuals seeking a communal living environment with access to shared amenities.
Security and maintenance
Owners of landed houses are responsible for implementing security measures, like installing CCTV or alarms, and are accountable for the maintenance and repairs of the property.
Read this: 5 things that home buyers get wrong about property amenities
Condominiums offer gated communities with 24-hour security services to ensure the safety of residents. The management is responsible for maintaining common areas and facilities, which are funded through maintenance fees.
Location and accessibility
Landed houses are commonly situated in suburban or designated areas known for such properties, which may involve longer travel times to urban centres and amenities.
Read this: Do new MRT stations affect property transaction prices?
Condominiums in Singapore, including prime urban areas, provide convenient access to city amenities and public transportation, facilitating easier commuting.
Investment potential
Landed houses have a high potential for capital appreciation, particularly for freehold properties. The limited availability of land in Singapore contributes to their value over time.
Read this: 6 things to consider before considering property investment in Singapore
Condominiums offer appreciation potential based on location, market trends, and property condition, along with rental yields due to desirable locations and amenities.
Out of the two choices, condos are more in demand and desired. We’ll touch more on this below.
Regulations and restrictions
The regulations governing modifications and renovations are less stringent for owners of landed properties, and there are specific guidelines for GCBs and certain landed estates.
Condominiums have specific rules regarding renovations within the units to maintain uniformity. Residents are required to follow the guidelines set by the management committee.
Resale market and liquidity
The resale market for landed houses is generally smaller than that for condominiums, which can potentially lead to longer selling times. However, specific types of landed houses, such as GCBs, tend to have high demand and retain their value well.
Condominiums typically have a larger and more active resale market, which can offer higher liquidity and quicker transactions compared to other types of real estate properties.
Take a look at the graph below to see a better distinction between condos and landed houses:
The average price of landed houses has increased significantly by 102.22%, reaching around S$5.5 million. In contrast, the average price of condominiums has grown by 48.77%, now averaging approximately S$1.6 million. Despite the higher price growth of landed houses, the transaction volume for condominiums has consistently been much higher, reflecting their broader market accessibility and popularity among buyers.
This suggests that while landed houses have seen more substantial price appreciation, condominiums remain the more common choice due to their relative affordability and availability.
Environmental and sustainability factors
Landed houses provide space for sustainable practices like the installation of solar panels, rainwater harvesting, and maintaining green gardens. However, the larger space often leads to higher energy consumption.
Newer condominium developments frequently feature green mark certifications and eco-friendly designs. Shared resources and amenities contribute to improved overall sustainability.
Flexibility and customisation
Landed houses provide flexibility for customisation, renovations, and extensions, allowing property owners to tailor the property to their specific preferences.
Read this: What happens if your housing loan deductions reach your CPF Basic Retirement Sum (BRS)?
Condominiums typically offer limited options for customisation within the units due to shared ownership, which helps to maintain a uniform design for consistency.
Conclusion
The choice between a landed house and a condominium in Singapore depends on various factors such as individual preferences, lifestyle needs, and investment goals. Landed houses typically offer more space, privacy, and customisation opportunities, but they come with higher costs and require more maintenance.
Condominiums offer access to a range of facilities, simplified maintenance, and improved security, making them suitable for individuals seeking a communal living environment. Prospective buyers and investors should thoroughly evaluate these aspects as they may benefit from seeking advice from a real estate professional to facilitate a well-informed decision in line with long-term goals.
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Disclaimer: This information is intended solely for general informational purposes. 99.co makes no claims or guarantees regarding the accuracy, completeness, or suitability of the information, including, but not limited to, any assertion or assurance regarding its appropriateness for any specific purpose, to the maximum extent allowed by law. Despite all efforts to ensure that the information presented in this article is current, reliable, and comprehensive at the time of publication, it should not be used as the sole basis for making financial, investment, real estate, or legal decisions. Furthermore, this information is not a replacement for professional advice tailored to your unique personal circumstances, and we disclaim any responsibility for decisions made using this information.
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