Singapore’s stable political environment, prosperous economy, and world-class healthcare and education systems have attracted global property investors to purchase real estate here. On this bustling island nation where every inch of land is precious, a massive influx of foreign capital into the real estate market has often led to demand outstripping supply, making property prices exceptionally high. According to preliminary data from the Urban Redevelopment Authority (URA) website, as of December 19, 2021, foreign buyers purchased 6,211 private residential units last year, accounting for 17.3% of transactions. The total transaction value reached S$15.52 billion, representing 20.8% of the total private residential transaction value.
Among all property types in Singapore, villas are the most expensive. High-net-worth overseas buyers have set their sights on the most coveted properties with private land—landed residential properties (known as “villas” or “bungalows” by the Chinese). However, landed properties in Singapore are generally only available for purchase by Singapore citizens, with a very small number of permanent residents being able to buy after obtaining government approval. Only 5% of Singapore citizens live in these landed homes, as their prices are typically prohibitive for the average person. Due to their scarcity and uniqueness, landed properties are seen as a symbol of distinguished status.
Of course, it is not entirely impossible for foreigners to purchase a villa in Singapore. Interested buyers can continue reading to find out more.
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Table of Contents
What is the Singapore Landed Property Market Like?
As a small country with a land area of only 728.6 square kilometers, owning a landed home is the ultimate dream for every Singaporean.
Although Singapore has one of the highest homeownership rates in the world, in this land-scarce nation, housing is composed of two main sectors to meet the population’s needs.
The first is public housing, known as “HDB flats,” which accounts for about 78.3% of the total housing stock.
The second is private housing, which includes 16.5% non-landed properties and 4.9% landed properties.
According to data from the Singapore Department of Statistics, there were approximately 68,500 landed residential properties in Singapore as of 2021.
What is a Villa in Singapore?
In Singapore, a “villa” is referred to as “landed housing,” which means a house where the owner also owns the land title. In Singapore, the term “landed housing” typically refers to terrace, semi-detached, or fully detached houses.
There are several types of villas in Singapore, primarily:
- Terrace House
- Semi-detached House
- Detached House (Bungalow)
- Good Class Bungalow (GCB)
Additionally, there are other types such as Shophouses (for both commercial and residential use), Townhouses, and Cluster Houses.
Terrace House
A terrace house is a row of at least three attached landed homes. These houses are connected side-by-side with shared party walls, but each has its own separate front and back walls and roof, hence the name “terrace.” It is a type of low-density, low-rise housing.
Semi-detached House
A semi-detached house consists of two adjacent or back-to-back houses with a minimum plot size of 200 square meters, separated by a single common wall.
A semi-detached house offers more private space and privacy than a terrace house. All amenities are contained within the house and are fully owned by the homeowner.
Detached House and Bungalow
A detached house is what we would call a “standalone house with its own yard,” not connected to any other buildings. It is one of the largest types of landed housing in Singapore, with a land area typically over 400 square meters. The structure and walls of a detached house are not connected to another landed property, providing residents with a high degree of privacy and exclusivity. Such villas are relatively limited in number in Singapore. Since villa districts are located in low-population-density areas, the environment is quite peaceful and comfortable.
Good Class Bungalow (GCB)
A Good Class Bungalow (GCB) is the most prestigious and exclusive type of landed housing in Singapore. A GCB must have a minimum plot size of 1,400 square meters. The Urban Redevelopment Authority (URA) of Singapore has designated specific locations for GCBs, primarily in 39 Good Class Bungalow Areas (as shown in the image below) within postal districts 10, 11, 20, 21, and 23.
Currently, there are about 2,800 GCBs in Singapore. Due to their extreme rarity and high price tags, buyers of GCBs are often the ultra-wealthy.
Townhouse and Cluster House
Townhouses and cluster houses are a row of “strata landed housing” connected side-by-side. They are a type of low-density, low-rise housing similar to landed homes but built within a condominium complex. Owners of townhouses and cluster houses can enjoy the spaciousness and tranquility of a landed home and the prestige it signifies, while also having access to the full range of condominium facilities, including gyms, clubhouses, swimming pools, and security services.
Unlike traditional landed housing, owners of townhouses and cluster houses do not own the land title for their house. Instead, they share a single land title with other owners, known as a “Strata Title.” In simple terms, townhouses and cluster houses are a hybrid of landed housing and condominiums.
In April 2012, the Singapore government ruled that developers would no longer be allowed to build strata-titled landed housing in projects with “condominium” status. This move effectively closed a loophole that allowed foreigners to purchase strata landed homes in such projects without approval from the Land Dealings Approval Unit (LDAU). However, foreigners can still purchase strata landed homes in condominium projects that had already received approval from the Urban Redevelopment Authority (URA).
Where Can You Find Villas?
Villas in Singapore are primarily concentrated in two areas: the main island of Singapore and Sentosa Island.
Although landed properties can be found in various parts of Singapore, the majority are located in the central and northeastern regions. The most luxurious landed homes can also be found in Sentosa Cove. According to data from List International Realty Pte Ltd, as of the first quarter of 2019, 53.5% of Singapore’s landed properties were located in Districts 10, 15, 16, 19, and 20. Among these, District 19 had the highest number of landed homes, accounting for 15.8% of the total, followed by Districts 15, 10, 16, and 20. The chart below shows the distribution of each villa type in these five districts.
Additionally, Sentosa Cove, known as a scenic resort and tourist destination, features Singapore’s most luxurious landed residential estates. Located south of the main island, Sentosa Cove is not only an idyllic resort island but also the only area in Singapore where foreigners can purchase villa properties, attracting many international investors.
Who Can Buy Villas in Singapore?
Due to the provisions of Singapore’s Residential Property Act, all Singapore citizens are eligible to purchase landed residential properties (villas) in Singapore.
So, can foreigners and Singapore Permanent Residents (PRs) buy them?
Given Singapore’s limited land area, there are clear restrictions on foreigners purchasing landed private residences. Unless a Permanent Resident (PR) is deemed to have made exceptional contributions to Singapore and is approved by the Ministry of Law, they cannot purchase a villa. Individuals who renounce their Singapore citizenship or permanent residency must sell any landed private residences they own.
The number of PRs who qualify to purchase each year is small. Interested buyers must first apply for approval from the Land Dealings Approval Unit (LDAU) under the Singapore Land Authority (SLA) before they can purchase a landed residential property in Singapore. Applications can be submitted online but require a non-refundable fee.
So, what are the criteria for approval? Each applicant is assessed on a case-by-case basis, considering factors including but not limited to: (a) being a Singapore Permanent Resident for at least five years; and (b) having made exceptional economic contributions to Singapore. Factors such as the applicant’s taxable income in Singapore are considered during the assessment.
The only exception is for villas in the Sentosa Cove area. Foreigners, including non-permanent residents, can purchase land and landed private residences in Sentosa Cove. However, the land tenure for these properties is typically 99 years, and foreign buyers are not allowed to rent them out.
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What Are the Prices of Villas in Singapore?
Factors Affecting Price
Properties in Singapore can be divided into three main categories: HDB flats, condominiums, and landed housing. The prices of new HDB flats are set by the government, while condominiums and landed housing are entirely influenced by the free market economy. For villas traded freely on the market, their prices are based on the three most critical words in real estate—”location, location, location.” Other factors that influence villa prices in Singapore include land tenure, size, age, quality of the residence, and scarcity.
The Value of Land
For instance, when a Singaporean says, “I live in a landed house in Bukit Timah,” it’s like someone from Beijing saying, “I have a courtyard house within the Third Ring Road.” When Chinese buyers purchase villas, they often focus on whether the architecture and design are grand and spacious. In Singapore, however, the value of a villa lies in the land beneath the building.
In Singapore, landed houses and condominiums share the same types of tenure—freehold or 99-year leasehold. However, unlike condominiums, the majority of landed houses are freehold. About 90% of landed properties have freehold tenure, while the remaining 10% are leasehold. In terms of price, freehold landed houses are more expensive than leasehold ones. This involves land title documents, and the factors affecting villa prices are much more complex than those for condominiums, leading to significant price differences.
According to data from the Urban Redevelopment Authority (URA), as of 2021, the average price of freehold landed houses was S$1,540 per square foot, while the average price for leasehold landed houses was S$1,047 per square foot, a difference of 46.8%.
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Various Types of Villas to Suit Different Budgets
By villa type, the prices for terrace houses, semi-detached houses, detached houses, and GCBs range from low to high. An older terrace house in a non-prime district can be purchased for just over two million dollars. In contrast, the most expensive GCBs can cost tens of millions.
The new tech-savvy elite, with better education and a broader international perspective, also have a preference for Singapore’s GCBs. According to media reports, TikTok CEO Shou Zi Chew plans to spend S$86 million to purchase a GCB in Queen Astrid Park. Buyers of GCBs in Singapore are often household names, such as Zhang Yong, the founder of Haidilao; James Dyson, the founder of Dyson; Min-Liang Tan, the CEO of Razer; Anthony Tan, the co-founder of Grab; and Ian Ang, the CEO of SecretLab, among others.
Typical Transaction Prices in the Singapore Villa Market
To provide a more intuitive look at villa prices in Singapore, here are some recent transaction prices.
Project Name: The Ford@Holland
Address: 1 Ford Avenue
Property Type: Townhouse
Tenure: Freehold
Area: 306 square meters
Last Transaction Price: S$4.028 million
Project Name: Thomson Grand
Address: 11 Sin Ming Walk
Property Type: Cluster House
Tenure: 99-year Leasehold (from 2010)
Area: 506 square meters
Last Transaction Price: S$3.1 million
Address: 17 Siglap Walk
Property Type: Terrace house
Tenure: Freehold
Land Area: 171.4 square meters
Last Transaction Price: S$3.23 million
Address: 14 Namly Garden
Property Type: Semi-detached House
Tenure: Freehold
Land Area: 298 square meters
Last Transaction Price: S$6.52 million
Address: 492 Holland Road
Property Type: Detached House
Tenure: Freehold
Land Area: 570 square meters
Last Transaction Price: S$12 million
Address: 30 Nassim Road
Property Type: Good Class Bungalow (GCB)
Tenure: Freehold
Land Area: 2,987 square meters
Last Transaction Price: S$128.8 million
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