- Real Estate
Singapore Property - List of Foreigner Ownership Eligible Cluster Houses
Cluster Town Houses the Best of Condo & Landed Terrace Living
This is one of the best kept secrets in the Singapore property market. Do you want to own a strata cluster house that combined the best a landed property with condo facility perks? In Singapore, this new form of housing were introduced around the early 1990s to provide a form of gated community with a terrace town house feel.
In the past, those who wanted to live in individual houses can only choose from landed properties like detached bungalows, semi-detached (2 houses linked together), or terrace houses (usually 4 or more units linked together). While those who wanted round the clock security of a gated development, and the convenience of common facilities like a swimming pool, gym, steam rooms, can only buy into condominium developments.
The best solution is cluster housing developments which combines the best of both worlds by having a landed terrace housing feel with common facilities. The key difference is that cluster houses is strata landed ownership which means you cannot redevelop your house since its ownership is share. Besides that it is not that different from other lease hold landed properties and is usually priced competitively.
Map of Cluster Housing Developments in Singapore
A development with a Balinese resort feel with a nice pool, steam rooms, private car garage & less than 5 min walk from eateries, a supermarket &a
Strategic location along Bukit Timah Rd and near to popular Holland Village with eateries & more.
Located next to the Orchid Country Club, with nice views of the golf course and Seletar Reservoir.
Binjai Crest offers full condo facilities with your own private patio and roof garden.
Relatively new developement design by award winning WOHA architects.
The Chancery Residences is a quiet and peaceful low density cluster townhouse project of 33 clustered terraces and 1 detached bungalow.
Centrally located in Singapore and within walking distance to the nearby wet market and eating outlets.
All units are 3 storey townhouses with nice patio, a roof terrace and basement car park lot.
This housing development gives the feel of living in a landed house but with complete recreational facilities.
There are many cluster housing developments available in Singapore right now. The map shortlist shows some of the more unique and interesting estates.
The good news is that there are currently many available cluster housing to choose from. The bad news is that the supply of cluster housing will likely be limited for the foreseeable future because of new regulations that limits the number of cluster units based on development land size. This make it more profitable for developers to build low rise apartments instead of more cluster houses.
The last few years have seen huge supplies of condo units come on the market to satisfy the increase demand. The has actually caused the supply of new landed property to lag behind the pent up demand. Add to this the fact that the PSF of the condos are still significantly higher than for landed and cluster properties, it seems to suggest that the PSF differences will narrow, with significant upside for landed and cluster houses.
Buying Your Dream House
The great thing buying a cluster house is that not only do you enjoy condo like facilities and 24 hour security. It is also a great investment for non-Singapore foreigners who wants to either buy their dream home or invest in a great property with landed characteristic. With some financial acuity it should be possible for a foreign investor to enjoy the relatively low mortgage rates in Singapore.
As an investment choice the price trends are encouraging for these strata townhouses. Based on official URA records, as of 26th Aug 2010, the average PSF is S$646, which was up 13.7% from 2009's levels. The limited supply of units in the secondary market (about 120 developments with over 3,000 units) and the limit supply coming online in the primary market (due to stricter government guidelines on the density of units in Feb 2009) means a great price support for cluster houses.
Read these Hand Picked Article on Cluster Housing
- TODAYonline | Commentary | More price upside for landed homes
Learn about why there may still be more upside for Singapore's landed property prices.
- Singapore Property - Buy, Sell, Rent
Cluster houses may be a group of terrace houses, semi-detached houses or bungalows. Cluster houses share a small or wide array of facilities, depending on the development behind these cluster houses. The most common facilities cluster houses enjoy ar
- Fewer Cluster Homes for Singapore market | Hot New Property
HOME buyers and investors keen on getting a cluster house may soon find themselves with an increasingly limited pool of new choices to select from.
Which Private Residential Property Do You Prefer?
Given similiar Per Square Feet (PSF) Price between Cluster Houses and Condominiums, which will you prefer to buy and live in?
List Price Tracking for Cluster Housing Units
From my own experience, one of the most practical way to spot property price trends is to look at the difference between the median PSF asking listing prices and the most recently transacted PSF price for each estate. A large difference would indicate expectation of rising property prices, while a narrowing trend might indicate a slowing in price movements or even a change in trend.
For example, for Horizon Green, the asking price is $578 PSF, with last transacted price of $581 PSF, yielding price difference of -$3 PSF, which is 0.5% of the transacted PSF price. (as of 10 Aug'11)
For example for the Summer Garden, the asking price is $621 PSF, with last transacted price of $493 PSF, yielding price difference of $128 PSF, which is 25% of the transacted PSF price. (as of 10 Aug'11)
Take another example, for The Springfield which is just next to Summer Garden, the asking price is $787 PSF (only 1 unit listed for sale) with last transacted price of $597 PSF, yielding price difference of $190 PSF, which is 31.8% of the transacted PSF price (as of 10 Aug'11)
For example for the The Shaughnessy, the asking price is $463 PSF, with last transacted price of $451 PSF, yielding price difference of $12 PSF, which is 2.7% of the transacted PSF price. (as of 10 Aug'11)
For example for the Kew Residencia, the asking price is $622 PSF, with last transacted price of $xxx PSF, yielding price difference of $xx PSF, which is xx% of the transacted PSF price. (figures coming soon)
Do note that the above is based on a snapshot of the data at 20th Jan 2011.
More Reasons to Invest in Singapore's Strata Landed Cluster Homes
Do note that although cluster houses have some of the characteristics of private landed properties, they are still considered as "condos" in terms of the strata shared land ownership. Here are some statistics on landed real estate in Singapore which would still be indicative of the trends for cluster houses.
In land scarce Singapore, the supply of private landed units had previously peaked at 18,348 units in the pipeline for 1995 4th Quarter.
For 4th quarter of 2010 it is now at low of 3,963 units in the pipeline. This historically low quantity of landed homes in the pipeline would suggest more upside for landed home prices.
Some investors also seems to favour strata landed properties over traditional landed properties due to the higher rental yield of 3 to 4 percent for strata units compared to 2 to 3 percent for landed units.
Let's take a look at the trends in landed property sales. There were a total of 511 strata landed units sales in 2009, compared to a slight increase to 543 units transacted for the whole of 2010. Comparing over the same period of 2009 to 2010, the average transacted prices for strata cluster units increased by a whopping 28 percent for leasehold units and a lower 12 percent for freehold units.
Judging from these figures we might be in the beginnings of uptrend for leasehold strata landed cluster units.
Want to Learn More about Investing in International Real Estate?
One of the more attractive international real estate to invest is the Asia property market and in particular the Singapore property market. In my opinion one of the best hedge against the harmful effects of rising inflation is prudent investment in physical assets, namely real estate.
The current up trend for properties prices in Asia would likely be slowed by the different cooling measures undertaken. While making any substantial investments, its always important to use a good loan calculator to compute what-ifs investment scenarios, and to read and understand the latest and key Singapore property news articles before deciding on getting that dream home or investing for your long term wealth protection.