Entry-Level Landed Homes Below $7 Million: The Next Battleground for Singapore’s Upgraders?

For many Singaporeans, buying a landed property has always represented the final step of the housing journey.

Start with an HDB flat.

Upgrade to a condominium.

Then, when finances and family needs allow, purchase a landed home.

That path still exists.

But the distance between each step is changing.

Today, a new four-bedroom suburban condominium can already cost between $2.5 million and $3.5 million. Larger resale condominiums in established estates can cross $3 million. Executive Condominiums are also entering price levels that were once associated with private condos.

As condominium prices move upwards, more owners are beginning to ask:

Instead of paying $3 million or $4 million for another apartment, should I stretch further and buy my first landed home?

This is why I believe the most interesting part of Singapore’s landed market over the next five years will not necessarily be Good Class Bungalows, luxury detached homes or prime District 10 properties.

It will be the entry-level landed segment.

I am referring broadly to landed homes priced below $7 million, including:

• Older terrace houses requiring renovation.
• Smaller inter-terraces in suburban estates.
• 99-year leasehold landed homes.
• Strata landed and cluster houses.
• Compact semi-detached homes in less central locations.
• Homes that are functional but not necessarily rebuilt to their maximum potential.

These properties may not attract the most glamorous headlines.

But they are increasingly becoming the bridge between condominium ownership and traditional landed living.

Singapore’s Landed Market Is Small—and Staying Small

The starting point is scarcity.

As at the first quarter of 2026, Singapore had approximately 73,662 completed landed private homes, compared with more than 350,000 condominiums and apartments, excluding Executive Condominiums.

Over a much longer period, the contrast becomes even clearer.

Singapore’s landed housing stock increased from about 67,229 homes in 2000 to 75,338 in 2025—an increase of only around 12% over 25 years. Over the same period, the stock of flats and condominiums expanded far more substantially.

This is important because Singapore continues adding households, creating wealth and producing more HDB and condominium owners capable of upgrading.

Yet the number of landed homes is not expanding at the same pace.

That imbalance does not guarantee that every landed property will appreciate.

But it creates a strong structural foundation for the segment.

Entry-Level Landed Is Already Becoming Harder to Find

The definition of an “entry-level” landed home has changed dramatically.

A decade ago, many buyers considered $2 million to $3 million sufficient to enter the landed market.

Today, that budget is more likely to purchase a strata landed property, an older leasehold house or a home with particular compromises.

For conventional landed homes, the psychological starting point has moved closer to $4 million or $5 million.

ERA’s first-quarter 2026 landed report found that 57.9% of landed transactions exceeded $5 million, up from 49.7% in the preceding quarter. In the Outside Central Region, median transaction prices were approximately $4.44 million for terrace homes and $5.75 million for semi-detached homes.

These figures tell us something important.

The sub-$7 million category is no longer a small niche at the bottom of the landed market.

It has become the main battleground for first-time landed buyers.

Where Is the Demand Coming From?

The buyer pool is broader than many people realise.

It does not consist only of high-net-worth investors or business owners.

A significant portion comes from families who have built wealth through their existing homes.

HDB Owners Are Moving Further Up the Housing Ladder

Some HDB owners are sitting on substantial equity.

Owners of Executive Apartments, maisonettes, central-area flats and newer five-room flats may have accumulated several hundred thousand dollars in capital gains, CPF savings and loan repayment.

Million-dollar HDB transactions have become more common, particularly for rare, large or centrally located flats. In the second quarter of 2025 alone, 415 HDB flats changed hands for at least $1 million, according to market data reported by Reuters.

Of course, selling a million-dollar HDB flat does not immediately make a $5 million landed home affordable.

But it can provide the equity required for the first 25% downpayment, Buyer’s Stamp Duty and initial renovation costs—especially for dual-income households with strong earnings.

Some of these owners will still progress first into a condominium.

Others may decide to skip that intermediate step.

Their thinking is increasingly practical:

If the family ultimately wants landed living, why pay stamp duties, renovation costs and transaction expenses twice?

Condominium Owners Form the Natural Buyer Base

Condominium upgraders remain the most obvious source of entry-level landed demand.

An owner who bought a suburban condo several years ago may now be sitting on meaningful equity.

A family selling a condominium for $2.5 million to $3.5 million could potentially move into a $4 million to $6 million landed home, depending on its outstanding loan, income, available cash and CPF balances.

This gap is still substantial.

But it is not impossible.

The comparison becomes especially compelling when a new four-bedroom condominium already costs close to $3 million or more.

At that stage, buyers are no longer comparing a $2 million condo with a $5 million house.

They may be comparing:

• A $3.2 million new condominium.
• A $3.5 million larger resale condominium.
• A $4.5 million older leasehold terrace.
• A $5 million strata landed home.
• A $5.5 million conventional terrace requiring renovation.

Once the comparison is framed this way, entry-level landed housing begins to look less unattainable.

Why Some Buyers Should Consider 99-Year Leasehold Landed Homes

Singaporeans have traditionally placed a strong premium on freehold landed property.

That preference is understandable.

When someone purchases land, they naturally want to own it for as long as possible.

However, this preference can become counterproductive when buyers reject every leasehold opportunity without considering the price difference.

A 99-year leasehold landed home can offer a significantly lower entry quantum than a comparable freehold property.

That lower price may allow a family to:

• Upgrade several years earlier.
• Retain more cash after the purchase.
• Take a smaller mortgage.
• Renovate the home properly.
• Avoid overextending financially.
• Secure more space than the same budget would purchase in the freehold market.

The value of a home is not determined by tenure alone.

Location, remaining lease, land size, road conditions, build-up, renovation requirements and surrounding demand all matter.

A reasonably young 99-year leasehold terrace bought at the right price may provide better financial and lifestyle value than a very old freehold home requiring extensive reconstruction.

The key is to enter with sufficient remaining lease and a realistic holding period.

A buyer who plans to occupy the home for 10 to 15 years may not require an asset that lasts forever.

They need an asset that remains attractive to the next family when they eventually sell.

Strata Landed Should Not Be Dismissed

Strata landed housing occupies an interesting middle ground.

Buyers receive a landed-style home, multiple floors and condominium facilities, but do not own an individual land title in the same way as conventional landed homeowners.

There are also maintenance fees, management rules and restrictions on alterations.

For these reasons, strata landed homes generally trade at a discount to comparable conventional landed properties.

But that discount is precisely why the segment deserves attention.

For a family upgrading from a condo, a strata landed home can offer a relatively familiar transition.

They still enjoy:

• Security and managed common areas.
• Shared swimming pools and facilities.
• Less responsibility for external maintenance.
• More internal space.
• Direct access from the car park or basement.
• A landed-style layout across several levels.

It may not satisfy buyers whose primary objective is land ownership.

But for those seeking space and lifestyle rather than redevelopment potential, strata landed can be a sensible compromise.

As conventional landed entry prices rise, I expect more buyers to reconsider this category.

The Opportunity Is Not Simply “Buy Anything Below $7 Million”

Scarcity does not make every landed property a good purchase.

Entry-level homes often come with compromises.

Some sit beside busy roads.

Some have awkward land shapes.

Some are located near substations, places of worship or commercial activity.

Others have short leases, severe level differences or major structural issues.

A low asking price may also hide a renovation or rebuilding requirement of $1 million or more.

Buyers must therefore calculate the real entry price, not just the purchase price.

A $4.5 million house requiring $1.5 million of rebuilding is not necessarily more affordable than a $5.7 million renovated home.

The real calculation should include:

• Purchase price.
• Buyer’s Stamp Duty.
• Interest costs.
• Renovation or reconstruction.
• Temporary accommodation.
• Professional and approval fees.
• Maintenance.
• Opportunity cost of cash.
• Time required before the property becomes liveable.

This is particularly important for HDB and condo upgraders.

After using substantial cash for the 25% downpayment and stamp duty, many families do not have another $1 million readily available for reconstruction.

A functional, renovated or “make-do” house may therefore be financially superior to a cheaper teardown property.

What Kind of Entry-Level Landed Home Will Perform Best?

Over the next five years, I believe the strongest demand will concentrate in homes that are both aspirational and achievable.

They do not need to be perfect.

But they must meet the basic needs of the upgrader market.

The most resilient homes are likely to have:

• An overall quantum that remains within reach of dual-income households.
• At least four proper bedrooms.
• Parking for one or two cars.
• A functional layout that does not require immediate rebuilding.
• Reasonable access to MRT stations, schools and amenities.
• A regular land shape.
• No severe road, slope or environmental disadvantages.
• Sufficient remaining lease where leasehold.
• A broad future buyer pool.

The word broad is important.

A highly customised house may appeal strongly to one buyer but be difficult to exit later.

Entry-level landed purchasers should prioritise flexibility.

The next buyer should be able to imagine moving in, renovating gradually or rebuilding in future.

Where Could Prices Be Five Years From Now?

No one can forecast property prices with certainty.

Interest rates, economic growth, government policy, construction costs and household confidence can all change.

However, my base case is that good-quality entry-level landed homes will continue appreciating over the next five years, although not in a straight line.

URA’s final first-quarter 2026 data showed landed prices declining by 0.4% after rising 3.4% in the previous quarter. The second-quarter flash estimate then showed landed prices rebounding by 2.6%.

This volatility is normal in a relatively illiquid market.

Landed homes are not standardised products.

A change in the mix of terraces, semi-detached homes, locations and land sizes transacted can cause the index to move sharply from one quarter to another.

The five-year direction matters more than one quarter.

My view is that well-selected entry-level landed homes could appreciate by approximately 15% to 25% between 2026 and 2031 under a moderate-growth scenario.

That would translate approximately into the following:

• A $4 million home becoming worth around $4.6 million to $5 million.
• A $5 million home moving towards $5.75 million to $6.25 million.
• A $6 million home reaching around $6.9 million to $7.5 million.
• A $7 million home potentially moving towards $8 million or more.

This is an opinion, not a guarantee.

The outcome for an individual house could be much better or worse.

A well-positioned home near transport, schools and future transformation may outperform.

A property with lease decay, severe physical disadvantages or excessive renovation requirements may underperform the broader market.

Could the Entry Price Become $6 Million?

Today, buyers often describe $4 million to $5 million as the entry range for conventional landed housing.

Five years from now, I believe the common entry conversation could begin closer to $5 million to $6 million, particularly for freehold or 999-year terraces without major defects.

The reasons are structural.

There will likely be more owners of expensive condominiums.

More HDB households will accumulate significant housing equity.

Household incomes should grow over time.

Construction and replacement costs are unlikely to return to historical levels.

Yet the number of landed homes will remain tightly constrained.

The supply of potential upgraders is expanding.

The supply of houses they aspire to own is not.

Will 99-Year and Strata Landed Appreciate Too?

Yes—but they should not be expected to move identically to freehold conventional landed homes.

A 99-year landed home is likely to perform best while it still has a long and financeable lease.

As the remaining tenure falls, buyers may demand an increasingly large discount.

The key investment window is therefore earlier in the lease rather than later.

Strata landed homes may also appreciate, especially as the gap with conventional landed properties widens.

However, their upside can be affected by:

• Maintenance fees.
• Restrictions on rebuilding and alteration.
• The project’s management quality.
• Internal competition from similar units.
• Buyer preference for individual land ownership.

I would view both categories as affordability-led landed options, not substitutes that will always track freehold land one-for-one.

They can still produce good returns when bought at a sufficient discount and supported by strong owner-occupier demand.

The Main Risks

The entry-level landed market has powerful fundamentals, but buyers should not ignore the headwinds.

First, affordability is already stretched.

A $5 million purchase requires at least $1.25 million for the basic 25% downpayment before stamp duty and renovation.

Second, landed homes come with higher maintenance obligations.

Roof leaks, waterproofing, plumbing, electrical systems and structural repairs can produce substantial unexpected costs.

Third, construction expenses may prevent owners from unlocking the full potential of the land.

Fourth, government policies could affect borrowing or transaction costs.

Finally, landed homes can take longer to sell because every property is different and the buyer pool is smaller than for mass-market condos.

The right buyer should therefore have strong holding power.

Landed property should not be treated as a short-term trade.

My View

I believe the entry-level landed segment will become one of the most contested parts of Singapore’s housing market between now and 2031.

Not because every Singaporean can afford a landed home.

Most cannot.

But the number of households capable of buying one is gradually expanding, while the stock available to them remains almost fixed.

This will force buyers to become more flexible.

Some will accept 99-year tenure.

Some will choose strata landed.

Some will move further from the city.

Some will purchase an older home and renovate progressively.

Others will accept a smaller plot because owning some land is more important than owning the perfect house.

The greatest risk may not be buying an imperfect landed home.

It may be waiting for the perfect freehold landed home at yesterday’s price.

For HDB and condominium owners who genuinely aspire to landed living, the question is no longer simply:

“Can I afford my ideal landed home?”

The better question may be:

“What compromise allows me to enter this limited market without compromising my financial security?”

Five years from now, today’s entry-level prices may no longer look entry-level.

That does not mean buyers should rush.

It means they should begin planning earlier.

Because in a segment where supply barely grows, the ability to enter often matters just as much as the type of house one eventually owns.

Frequently Asked Questions About Entry-Level Landed Property

What is considered an entry-level landed property in Singapore?

In 2026, the entry-level segment broadly includes homes below $7 million, particularly suburban terraces, older houses requiring renovation, 99-year leasehold landed properties and strata landed homes.

Can an HDB owner upgrade directly to a landed home?

Yes, provided the household has sufficient cash, CPF, income and borrowing capacity. Owners must also account for the downpayment, Buyer’s Stamp Duty, existing loan obligations and renovation costs. Some higher-value HDB owners may choose to skip the condominium stage.

Is a 99-year landed property worth buying?

It can be, particularly when the remaining lease is long and the purchase price is meaningfully below comparable freehold alternatives. Buyers should assess future financing eligibility, resale demand and their intended holding period.

Is strata landed a good investment?

Strata landed property can offer more space and landed-style living at a lower price than conventional landed homes. Its performance depends on entry price, project management, maintenance fees, remaining lease and the discount to individual-title landed properties.

Will landed prices continue rising until 2031?

My base case is for moderate long-term appreciation, supported by limited supply and upgrader demand. However, individual outcomes will vary, and prices may experience temporary declines during periods of economic or financing uncertainty.

Which entry-level landed homes have the best prospects?

Functional terrace and compact semi-detached homes below $7 million, with regular land shapes, reasonable access to schools and transport, manageable renovation requirements and a broad family-buyer catchment, are likely to remain the most liquid.

Christopher Ng is an Executive Group Division Director at ERA Singapore with over 20 years of experience across residential, commercial and industrial real estate. A graduate of the National University of Singapore's Real Estate programme, he is known for advocating a long-term asset progression approach to property ownership and helps homeowners make structured property decisions. Together with his wife, Jasmine, he leads one of ERA Singapore's fastest-growing divisions while continuing to advise clients across HDB, private residential, landed and Good Class Bungalow transactions.