Non-landed Private Residential

[Pavan Outlaw]

Therewere 291,534 non-landed properties in 2017, a 69% increase from 2008. The supply of non-landed residential properties is expected to increase even further in the following years, with several developers having access to more land looking to add many condominium units to the market in the future. Hence, with plentiful non-landed units flooding the residential property market, there is much higher competition when investing in non-landed property, rendering it less valuable and harder to sell compared to landed houses.

Landed property: Refers to residential property where the owner of the house has title to the land below and surrounding the house.

Non-Landed property: Refers to properties where residential units are often built on top of one another, resulting in the owners owning specific parts of the real estate.

What are the pros and cons to both types of housing?

Welcome back to our guide to the different housing types available in Singapore. Take a quick guess on how many different private properties there are, and stay tuned to the end to see whether you close! Previously we covered public housing offered by HDB. In this article, we will be covering all things private (non-landed) properties related!

What does it really mean to own an HDB flat? HDB owners own exclusive rights to their particular units and nothing else. Common areas such as corridors, playgrounds, and other estate spaces are the responsibility of the respective town councils, who are in charge of their upkeep and maintenance.

Since HDB provides public housing with affordability in mind, HDB flat owners may be eligible for certain subsidies and CPF housing grants. These owners can also borrow from HDB or other financial institutions. HDB loan takers can expect a lower interest rate than other loan alternatives since the government backs HDB loans.

On the other hand, private homeowners can only obtain loans from financial organisations that rely on the worldwide market. Note that those seeking loans can expect higher bank loan rates due to the increase in federal interest rates. Executive Condominiums (ECs) which are a hybrid type of private and public housing, will have grants available as well. But will not be eligible for a HDB Housing Loan.

Another significant difference between public and private housing is the income ceiling. While there are income ceilings for purchasing new flats from HDB, there is no such restriction for private properties. This means anyone can buy private properties, regardless of income level.

In contrast, to be eligible for a new flat or EC from HDB, the monthly household income ceiling varies depending on the flat type, project, and whether the purchase involves extended or multi-generation families. For instance, the monthly household income ceiling ranges from $7,000 to $21,000 for HDB flats, depending on the specific criteria.

The Land Titles (Strata) Act of 1967 introduced strata titles and allowed buildings to be subdivided into individual units owned by different parties. In contrast, land titles refer to the ownership of the land rather than any buildings or structures on the land. Owners of land titles have the sole right to the land and can use it for whatever purposes are allowed under relevant zoning and planning regulations.

Unlike strata titles, land titles typically do not include facilities or amenities beyond what can be built on the land, such as a swimming pool or gym. Owners of land titles are responsible for managing and maintaining their property, including any structures or buildings on the land, and seeking necessary approvals from relevant authorities for any major works.

In comparison, the Management Corporation Strata Title (MCST) manages and maintains the common property in a strata-titled development. Each unit owner must pay a monthly maintenance fee to the MCST, which contributes to the sinking fund used for the maintenance and management of the common property. The sinking fund covers major repairs and replacements to the common property, such as repainting, roof repairs, or lift replacements. Although individual unit owners do not own the common areas, they have a collective ownership interest in these areas through their share value in the development. The MCST represents this collective ownership interest.

The history of private properties in Singapore can be traced back to the 19th century when the British introduced shophouses and bungalows as early as the 1830s. In the early 20th century, the government introduced regulations controlling private property development.

The Building Maintenance and Strata Management Act of 2004 followed, regulating the management and maintenance of strata-titled properties and introducing new regulations on the conservation of buildings in Singapore. This act required owners of private properties to ensure proper care and conservation to prevent disrepair while creating a maintenance fund and appointing a qualified person to oversee the work.

Lastly, cooling measures were introduced at various points since 2009 to curb excessive speculation and stabilise the property market, which significantly impacted the buying and selling of private properties in Singapore.

Walk-up apartments are low-rise buildings built before World War II and generally older, with 40-60 years left on the lease. These houses are often referred to as pre-war Singapore Improvement Trust (SIT) flats by the URA, and their facades must be conserved according to URA guidelines. As the name suggests, walk-up apartments have no lifts, making them unsuitable for older people and the less mobile. Furthermore, moving furniture in and out of these properties can be a hassle due to the absence of elevators. However, the good thing about walk-up apartments is their location. They tend to be in popular areas such as Tiong Bahru, Marine Parade, Novena, and Farrer Park.

The largest private condominium in terms of number of units is likely to be Treasure at Tampines, located in the eastern part of Singapore. It has a site area of approximately 60,000 sqm and comprises of 2,203 units. Expected to TOP in 2023, the project has a grand total of 29 blocks.

When it comes to private properties in Singapore, you may notice that the terminology used for room types is different from that of public housing or HDB. In private condominiums, a three-room unit would typically refer to a space that comprises a living room and 3 proper bedrooms. This is different from HDB flats, where a three-room flat is referring to a unit with 1 living room and 2 bedrooms.

In addition to this difference in room type terminology, private condominiums also offer a range of unit types to cater to different preferences and needs. For instance, there are unique unit types such as duplexes, dual-key, penthouses, and cluster houses.

A duplex is a type of private condominium unit in Singapore that spans across two levels connected by an internal staircase. While duplexes are commonly found on penthouses, they can also be located in middle-level units or ground levels. With various combinations of condominium types available, duplexes offer unique living arrangements and are popular with families or those seeking a more spacious living environment. The flexibility of their location within a building allows for greater options when choosing a unit that best suits individual preferences and needs.

Dual-key units in Singapore have become increasingly popular in recent years, and for good reason. These units feature two separate living spaces with their own entrances, allowing for greater flexibility and privacy. This is particularly appealing for those who may be interested in a part stay, part rent strategy, where one living space can be rented out for additional income while the other is used for personal living.

The dual-key concept is also suitable for multi-generational families who wish to live together but still maintain some degree of independence. Whether for investment purposes or for personal use, the dual key unit has proven to be a popular choice among buyers who value both flexibility and privacy in their living space. Note that simpler to a duplex, there are many combinations of unit types such as dual-key penthouses.

Penthouses have gained popularity among high-net-worth individuals, families, and those seeking a premium living experience due to their luxurious and spacious living arrangements in prime locations. These units offer a high level of exclusivity and are designed to provide a comfortable and lavish lifestyle.

Lastly, cluster houses can also be found in some condominium developments. While these fall under the category of strata-landed properties (landed property that holds strata titles instead of land titles), they are still considered as part of certain condominium projects. Owners of cluster houses get to enjoy landed living while having the perk of condo facilities.

Only formal development applications (excluding Outline Applications) which have already been granted Provisional Permission or which will result in a Provisional Permission that are submitted before 18 January 2023 will not be subject to the revised guidelines.

For other information on the master plan, urban design guidelines, private property use and approval, car park locations and availability, private residential property transactions, and conservation areas and buildings, use URA SPACE (Service Portal and Community e-Services). This is an online portal packed with useful data and visualisation to help building professionals, business operators and the general public in their decision-making. It consolidates detailed information on land use and private property into a one-stop platform presented on geospatial maps. For feedback or enquiries, please email us.

Often referred to as condos, condominiums are a type of non-landed private housing. Contrastingly to HBD flats, which are lived in by 80% of Singaporeans, condos are recognised by its common facilities for resident use. The key difference between a condo and a typical apartment estate is that a condo development is required to be at least 4,000 square metres or larger.

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