Andy December 13 2021

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Cluster Housing vs Landed Property - Buying Guide

Landed properties are one of the most diverse markets in Singapore real estate. 

In this post, we’ll be looking at the difference between two types of properties in Singapore, namely the cluster housing and landed properties.

Cluster Housing

Cluster housing is a form of strata landed homes. It is a strata-titled property where developers construct multi-floor residences beside one another with communal facilities. Cluster housing is essentially like condominiums, except instead of buying just one apartment, you get the whole building. Owners of cluster houses get access to the gym, swimming pool, and other facilities you will get in a condominium, such as 24/7 security.

 

Advantages of cluster housing

  1. Communal facilities. As owners of cluster houses share the various housing facilities, the management and upkeep will be done by the building management, and you would not have to oversee every menial task by yourself. 
  2. Affordability. Cluster housing is cheaper than your typical landed property, without many cutbacks. Cluster housing is relatively private as compared to traditional housing since they don’t typically exceed 150 units, so you will not have to share living spaces with too many people. Plus, it also provides you with at least 2 dedicated parking lots. 
  3. Home lift. The elderly folks will enjoy the convenience of the lift from the basement carpark to the top floors. 

An example of a freehold cluster housing is Belgravia Villas in Ang Mo Kio. There are inter terraces and semi-D.

 

Landed Property

You own the piece of land for a landed property. Landed properties are divided into three categories: 

- Detached Housing

- Semi-detached Housing

- Terraced Housing

Landed properties are exclusive; only 5% of Singaporeans live in one. That means living in a landed property can provide you with the utmost privacy. By owning the land your property sits on, there are little people around that will intrude in your living space. Also, with the low-density build up in the area, the neighbourhood will be relatively safe, especially since it means you will likely be familiar with the residents in the area. Aside from living practicality, landed properties are also great investments that can become a financial shelter for your future generations.

The affluents and wealthy Singaporeans will prefer a Good Class Bungalow (GCB) for a wide frontage and massive plot of land. In October this year, a 19,984 sq ft GCB at Second Avenue was sold for $33 million. It was owned by the founder of collapsed firm Hin Leong, Lim Oon Kuin also known as OK Lim.

 

Advantages of a landed property

  1.  Privacy and freedom. As mentioned, landed properties offer privacy, and it also provides you with freedom, especially if you like to decorate. Unlike cluster houses, landed property owners have the opportunity to design their property the way they want to as long as it is within URA’s regulations. 
  2.  Value for money. In terms of built-up space, landed properties are more worth it since you would be paying less per square foot as compared to condominiums. Additionally, land value only appreciates, which is why it is also a great investment that can become a financial shelter for your future generations.
  3. Bigger rooms. The bedrooms are noticeably bigger than a strata landed house. 

 

Should I buy a Cluster House or Landed Property?

It all depends on what you are looking for in a house. If you do not like the hassle of doing every little upkeeping task by yourself, such as pest control, then cluster house is more suitable for you. Likewise, if you like to be in control and do not want to be restricted by the MCST by-laws, landed property is the one for you.

Landed properties have enjoyed capital appreciation in the past decade as land is scarce in Singapore. They are a good hedge against inflation.