Are cluster landed homes still profitable? Here's how they've performed over 10 years
PHOTO: Stackedhomes
PUBLISHED ONApril 28, 2024 11:00 AMByRyan J
Cluster homes are in that weird spot between landed housing and condos.
On the one hand, they're landed; on the other hand, you still have an MCST, and common facilities. But next to walk-up apartments, this may be one of the least studied and understood housing segments: Besides being relatively few in number, they tend to have small unit counts with more volatile pricing.
This week, we took a look at how these rare properties have been performing:
Average price growth for cluster housing (freehold)
| Year | Average of Unit Price ($ PSF) | Change |
| 2013 | $865 | |
| 2014 | $912 | 5.4 per cent |
| 2015 | $799 | -12.3 per cent |
| 2016 | $726 | -9.2 per cent |
| 2017 | $760 | 4.8 per cent |
| 2018 | $797 | 4.8 per cent |
| 2019 | $802 | 0.7 per cent |
| 2020 | $747 | -6.9 per cent |
| 2021 | $814 | 8.9 per cent |
| 2022 | $985 | 21.1 per cent |
| 2023 | $1,038 | 5.3 per cent |
| Average Change | 2.26 per cent | |
From 2013 to the present, freehold cluster homes have seen an average gain of 2.26 per cent. As we mentioned above, however, these units are not common, and 1,760 transactions over 10 years is a very low number.
Nonetheless, let's contrast this against leasehold cluster homes:
Average price growth for cluster housing (leasehold)
| Year | Average of Unit Price ($ PSF) | Change |
| 2013 | $807 | |
| 2014 | $810 | 0.4 per cent |
| 2015 | $780 | -3.7 per cent |
| 2016 | $674 | -13.6 per cent |
| 2017 | $666 | -1.1 per cent |
| 2018 | $740 | 11.1 per cent |
| 2019 | $752 | 1.5 per cent |
| 2020 | $716 | -4.7 per cent |
| 2021 | $894 | 24.8 per cent |
| 2022 | $924 | 3.3 per cent |
| 2023 | $956 | 3.4 per cent |
| Average Change | 2.15 per cent | |
The average performance is slightly inferior to freehold counterparts, coming in at an average of close to 2.15 per cent. However, we're still working with low transaction volumes, with just 1,582 transactions over the past decade.
While freehold cluster homes performed slightly better on average, there could be other factors that aren't visible here.
When leasehold properties are down to 60 years or fewer, banks often lower the maximum loan amount; the loan-to-value (LTV) ratio may be reduced to 55 per cent from 75 per cent, resulting in a much higher cash outlay.
This could drive prices down, especially since landed homes tend to be bigger and fetch a higher quantum.
Some realtors have also opined that older leasehold landed properties are harder to sell.
Most landed property buyers are looking for intergenerational assets, rather than something with 60 or fewer years on the lease. Evidence for this is anecdotal though, and the sentiment for such homes may be different as compared to true landed homes.
After all, the appeal of a cluster home is the bigger space and landed living at a more affordable (and less maintenance) price.
Now let's look at average annualised returns:
| Project | Tenure | Avg Annualised (%) | Avg Holding Period (Yr) | Average Profit ($) | Avg Profit (%) | No. of Tnx |
| Chateau La Salle | Freehold | 33.6% | 0.3 | $300,000 | 9.1% | 1 |
| Aston Residences | 946 yrs from Jan 1, 1938 | 21.3% | 2.7 | $816,667 | 39.2% | 3 |
| Hillsgrove | 999 yrs from Dec 2, 1878 | 13.6% | 3.6 | $1,385,000 | 56.5% | 2 |
| Dunsfold 18 | Freehold | 13.1% | 2.9 | $1,200,000 | 42.9% | 1 |
| The Hilloft | 999 yrs from Oct 12, 1885 | 10.1% | 2.3 | $730,000 | 24.7% | 1 |
| Marlene Ville | Freehold | 9.0% | 4.1 | $807,963 | 40.1% | 3 |
| Horizon Green | 99 yrs from June 23, 1995 | 8.6% | 4.2 | $699,320 | 39.2% | 4 |
| The Silver Spurz | Freehold | 8.0% | 4.6 | $818,500 | 44.8% | 2 |
| Surin Villas | Freehold | 7.5% | 5.6 | $1,200,000 | 50.0% | 1 |
| Le Royce @ Leith Park | Freehold | 7.2% | 5.7 | $900,000 | 48.6% | 1 |
| Solaris Residences | Freehold | 7.0% | 6.1 | $1,050,000 | 51.2% | 1 |
| Affinity at Serangoon | 99 yrs from May 18, 2018 | 6.7% | 4.3 | $759,990 | 33.1% | 3 |
| Cabana | 103 yrs from April 23, 2009 | 6.6% | 5.2 | $620,298 | 33.5% | 7 |
| Kent Ridge Hill Residences | 99 yrs from Nov 10, 2018 | 6.6% | 2.8 | $569,380 | 19.6% | 1 |
| Parkwood Collection | 99 yrs from Sept 22, 2017 | 6.6% | 3.1 | $727,000 | 21.9% | 1 |
| Belgravia Green | Freehold | 6.4% | 3.7 | $752,801 | 24.0% | 7 |
| Montclair @ Whitley | Freehold | 6.0% | 4.8 | $932,667 | 33.6% | 3 |
| Palm Tree Nines | Freehold | 6.0% | 6.5 | $690,000 | 45.7% | 1 |
| Goodman Crest | Freehold | 6.0% | 4.3 | $1,062,500 | 29.4% | 2 |
| Shamrock Villas | Freehold | 5.8% | 3.7 | $880,000 | 23.2% | 1 |
| The Woods | 99 yrs from March 9, 2010 | 5.7% | 3.0 | $350,000 | 17.9% | 1 |
| Namly Court | Freehold | 5.6% | 3.6 | $850,000 | 24.7% | 2 |
| Whitley Villas | Freehold | 5.5% | 4.8 | $900,000 | 29.0% | 1 |
| Watercove | Freehold | 5.3% | 4.2 | $669,254 | 26.5% | 7 |
| The Shaughnessy | 99 yrs from March 19, 2001 | 5.1% | 5.5 | $407,568 | 27.6% | 19 |
| The Top Residence | 999 yrs from July 14, 1884 | 5.1% | 3.9 | $450,000 | 21.4% | 1 |
| Charlton Residences | Freehold | 5.0% | 3.8 | $570,000 | 20.4% | 1 |
| Estrivillas | Freehold | 4.9% | 5.0 | $920,000 | 27.2% | 1 |
| Riverfront Residences | 99 yrs from May 31, 2018 | 4.9% | 3.2 | $415,000 | 16.5% | 1 |
| Botanic @ Cluny Park | Freehold | 4.8% | 5.9 | $2,100,000 | 32.1% | 2 |
| Summer Gardens | 99 yrs from June 23, 1995 | 4.7% | 5.8 | $343,333 | 18.3% | 3 |
| Binjai Crest | 99 yrs from Dec 13, 1996 | 4.6% | 5.4 | $452,953 | 22.6% | 9 |
| Tranquilia @ Kismis | Freehold | 4.5% | 5.7 | $980,000 | 28.8% | 1 |
| Kew Gate |
99 yrs from Feb 3, 1994 |
4.4% | 5.4 | $360,600 | 28.4% | 5 |
| Legend @ Jansen | 999 yrs from Sept 1, 1876 | 4.2% | 5.0 | $444,333 | 23.7% | 3 |
| Caca Fidelio | Freehold | 4.1% | 3.9 | $320,000 | 17.0% | 1 |
| Elite Residences | Freehold | 4.1% | 4.6 | $521,700 | 20.2% | 1 |
| Chestnut Residences | 999 yrs from Sept 25, 1882 | 4.1% | 4.5 | $450,000 | 19.6% | 1 |
| Springhill | 99 yrs from Jan 7, 2002 | 4.0% | 5.3 | $299,280 | 22.2% | 29 |
| Jansen 8 | Freehold | 4.0% | 5.1 | $476,000 | 20.2% | 3 |
| The Springfield | 99 yrs from June 22, 1995 | 3.9% | 6.3 | $337,833 | 22.5% | 12 |
| Infinium | Freehold | 3.7% | 4.1 | $507,403 | 17.1% | 4 |
| D’Elias | 999 yrs from March 22, 1881 | 3.7% | 3.9 | $273,000 | 15.2% | 1 |
| Belgravia Ace | Freehold | 3.6% | 2.1 | $341,000 | 7.7% | 1 |
| The Gardens at Gerald | 999 yrs from Jan 1, 1879 | 3.6% | 4.0 | $289,500 | 15.2% | 2 |
| Trussville | Freehold | 3.6% | 4.3 | $282,000 | 16.4% | 1 |
| Fortune View | Freehold | 3.6% | 5.0 | $266,250 | 16.8% | 4 |
| Milford Villas | Freehold | 3.6% | 7.9 | $625,000 | 33.7% | 2 |
| D’ Kenaris | 999 yrs from Jan 1, 1879 | 3.5% | 7.7 | $600,000 | 30.8% | 1 |
| One Surin | Freehold | 3.5% | 5.3 | $497,424 | 19.2% | 8 |
| The Greenwood | 103 yrs from June 2, 2008 | 3.5% | 4.8 | $530,000 | 18.0% | 1 |
| Water Villas | Freehold | 3.3% | 5.5 | $370,000 | 16.1% | 2 |
| The Morris Residences | Freehold | 3.3% | 4.9 | $493,333 | 17.7% | 3 |
| Hillcrest Villa | 99 yrs from Aug 3, 2006 | 3.2% | 5.0 | $468,273 | 16.2% | 22 |
| Dublin Lodge | Freehold | 3.2% | 9.3 | $1,700,000 | 34.0% | 1 |
| Ridgewood | 999 yrs from July 6, 1885 | 3.2% | 5.8 | $962,500 | 27.9% | 2 |
| Lotus Ville | Freehold | 3.1% | 5.9 | $573,028 | 18.9% | 4 |
| High Park Residences | 99 yrs from Nov 5, 2014 | 3.0% | 5.9 | $420,000 | 20.7% | 5 |
| Palm Grove Regency | 999 yrs from Dec 2, 1878 | 2.8% | 4.0 | $231,667 | 10.6% | 3 |
| Suncottages | 999 yrs from Jan 9, 1883 | 2.8% | 4.8 | $10,000 | 2.3% | 2 |
| Medallion | Freehold | 2.8% | 4.9 | $320,000 | 14.7% | 1 |
| The Teneriffe | 99 yrs from Sept 7, 1996 | 2.8% | 5.6 | $374,808 | 14.7% | 11 |
| Rivertrees Residences | 99 yrs from Aug 28, 2013 | 2.7% | 5.9 | $215,433 | 13.0% | 3 |
| The Ambience | 999 yrs from March 1, 1874 01/05/1874 | 2.6% | 4.4 | $235,000 | 12.0% | 2 |
| Watten Residences | Freehold | 2.6% | 4.3 | $410,000 | 11.9% | 5 |
| Horizon Gardens | 99 yrs from June 23, 1995 | 2.6% | 7.2 | $444,000 | 23.9% | 3 |
| Kingsford Waterbay | 99 yrs from March 3, 2014 | 2.5% | 4.5 | $254,950 | 14.1% | 4 |
| Thomson Three | 99 yrs from Nov 7, 2012 | 2.5% | 5.5 | $425,000 | 15.3% | 2 |
| Jewel @ Chuan Hoe | 999 yrs from Jan 1, 1886 | 2.5% | 8.7 | $575,000 | 25.9% | 2 |
| Wolskel Lodge | Freehold | 2.5% | 3.7 | $151,000 | 8.0% | 2 |
| Place-8 | Freehold | 2.5% | 3.3 | $230,000 | 8.4% | 1 |
| Gentle Reflections | Freehold | 2.5% | 6.5 | $550,000 | 17.2% | 1 |
| Waterfront @ Faber | 99 yrs from Sept 17, 2013 | 2.4% | 6.7 | $395,725 | 16.7% | 4 |
| Serangoon Garden View | 999 yrs from Jan 23, 1879 | 2.4% | 3.6 | $162,000 | 8.8% | 1 |
| Residence 8 | Freehold | 2.3% | 5.9 | $700,000 | 14.6% | 1 |
| Fernhill Cottage | Freehold | 2.3% | 3.3 | $220,000 | 7.8% | 1 |
| Eight Riversuites | 99 yrs from July 11, 2011 | 2.2% | 5.7 | $195,429 | 12.8% | 7 |
| Barker Ville | Freehold | 2.2% | 6.7 | $450,000 | 15.5% | 1 |
| Eco | 99 yrs from May 14, 2012 | 2.1% | 6.6 | $418,000 | 13.7% | 5 |
| D’Manor | 99 yrs from 14/03/1997 | 2.1% | 5.0 | $172,833 | 9.9% | 6 |
| JC Ville | Freehold | 2.1% | 7.0 | $317,500 | 15.4% | 2 |
| Atelier Villas | Freehold | 2.0% | 5.6 | $293,633 | 15.1% | 6 |
| Charlton Villas | Freehold | 2.0% | 3.4 | $150,000 | 6.8% | 1 |
| Thomson Impressions | 99 yrs from Jan 12, 2015 | 1.9% | 2.9 | $175,000 | 7.1% | 2 |
| Charlton 18 | Freehold | 1.9% | 4.2 | $234,875 | 8.2% | 4 |
| Ventura Heights | Freehold | 1.9% | 5.2 | $51,667 | 4.2% | 3 |
| Sommerville Regency | Freehold | 1.8% | 7.2 | $269,444 | 12.9% | 2 |
| Lange 28 | 999 yrs from Dec 2, 1878 | 1.7% | 4.0 | $106,112 | 7.1% | 1 |
| Palacio | Freehold | 1.6% | 6.8 | $185,211 | 6.4% | 5 |
| Belgravia Villas | Freehold | 1.6% | 5.6 | $295,353 | 9.5% | 27 |
| Kew Residencia | 99 yrs from Feb 3, 1994 | 1.5% | 7.1 | $182,333 | 12.3% | 3 |
| Platina Gardens | Freehold | 1.4% | 6.5 | $170,000 | 9.6% | 1 |
| Gilstead Brooks | Freehold | 1.4% | 6.5 | $289,000 | 9.6% | 2 |
| Terra Villas | Freehold | 1.4% | 5.4 | $240,000 | 7.8% | 1 |
| Victory Ville | Freehold | 1.4% | 4.3 | $150,000 | 6.0% | 1 |
| Urban Villas | Freehold | 1.3% | 3.4 | $130,000 | 4.6% | 1 |
| Alana | 103 yrs from Aug 12, 2013 | 1.3% | 6.2 | $99,625 | 6.1% | 8 |
| The Areca | 99 yrs from Nov 8, 2000 | 1.3% | 6.8 | $244,444 | 15.8% | 2 |
| Kovan Regency | 99 yrs from April 24, 2012 | 1.2% | 9.8 | $443,298 | 13.8% | 2 |
| Ria Townhouses | Freehold | 1.2% | 3.3 | $88,000 | 3.9% | 1 |
| Poets Villas | 99 yrs from 01/04/2010 | 1.1% | 5.4 | $126,000 | 6.3% | 3 |
| Sommerville Residences | Freehold | 1.1% | 8.7 | $300,000 | 9.7% | 1 |
| The Chancery Residence | 99 yrs from Jan 31, 2004 | 0.9% | 8.0 | $181,400 | 7.5% | 5 |
| Hong Kong Park | 999 yrs from May 7, 1879 | 0.9% | 4.6 | $200,000 | 9.0% | 2 |
| Teresa 8 | Freehold | 0.8% | 8.3 | $200,000 | 6.9% | 1 |
| Chancery Hill Villas | Freehold | 0.8% | 4.5 | $165,250 | 4.2% | 4 |
| 8 @ Stratton | Freehold | 0.7% | 6.1 | $59,000 | 2.3% | 2 |
| Archipelago | 99 yrs from June 1, 2011 | 0.7% | 8.0 | $200,000 | 5.7% | 1 |
| Kaleido | Freehold | 0.7% | 4.1 | $91,103 | 2.8% | 1 |
| Marine Garden | Freehold | 0.6% | 5.5 | $60,000 | 3.3% | 1 |
| English Villas | Freehold | 0.4% | 8.5 | $100,000 | 3.6% | 1 |
| Charlton 27 | Freehold | 0.4% | 6.0 | -$64,657 | -1.3% | 6 |
| Centurion Residences | Freehold | 0.4% | 4.7 | $48,008 | 1.9% | 1 |
| Grandioso 8 | Freehold | 0.2% | 10.1 | $90,000 | 2.4% | 1 |
| Seven Crescent | Freehold | 0.2% | 6.0 | $40,000 | 1.2% | 3 |
| Lynnsville 331 | Freehold | 0.2% | 4.5 | $6,667 | 0.6% | 3 |
| Dalla Vale | Freehold | 0.1% | 4.6 | $207,500 | 12.1% | 4 |
| Palms @ Sixth Avenue | Freehold | 0.1% | 7.7 | $65,263 | 1.4% | 7 |
| Woodhaven | 99 yrs from Feb 7, 2011 | 0.1% | 7.5 | $73,705 | 2.8% | 2 |
| One Chiltern | Freehold | 0.1% | 8.7 | $19,988 | 0.6% | 1 |
| The Ford @ Holland | Freehold | 0.0% | 8.0 | $3,000 | 0.1% | 1 |
| Verdana Villas | Freehold | 0.0% | 6.9 | -$90,556 | -1.3% | 2 |
| Illoura | Freehold | -0.1% | 7.0 | $125,000 | 2.2% | 2 |
| D’Leedon | 99 yrs from April 8, 2010 | -0.3% | 5.4 | -$1,377,680 | -6.8% | 2 |
| Villas La Vue | Freehold | -0.3% | 9.3 | -$100,000 | -2.7% | 1 |
| Este Villa | Freehold | -0.6% | 3.8 | -$12,500 | -0.4% | 2 |
| Wilkinson 8 | Freehold | -0.6% | 5.0 | -$90,000 | -3.2% | 1 |
| West Shore Residences | Freehold | -0.7% | 8.0 | -$219,979 | -5.9% | 3 |
| Seletar View | 999 yrs from Jan 1, 1879 | -0.7% | 6.2 | -$100,000 | -4.3% | 1 |
| Euhabitat | 99 yrs from Dec 6, 2010 | -1.2% | 5.9 | -$644,700 | -14.7% | 2 |
| The Whitley Residences | Freehold | -1.3% | 8.1 | -$417,956 | -8.0% | 9 |
| Eleven @ Holland | 99 yrs from Dec 6, 2010 | -1.8% | 9.9 | -$750,000 | -16.7% | 1 |
| Hillsta | 99 yrs from Oct 3, 2011 | -2.7% | 4.0 | -$271,943 | -8.1% | 3 |
| Lynwood Eight | Freehold | -3.9% | 4.8 | -$700,000 | -17.5% | 1 |
| Gambier Court | 99 yrs from Feb 3, 1997 | -4.0% | 3.8 | -$545,000 | -14.3% | 1 |
| The Seawind | Freehold | -4.0% | 7.3 | -$1,308,500 | -25.6% | 1 |
Next, let's look at the most and least expensive cluster housing projects to date, by price per square foot
These cluster housing projects were the most expensive:
| Project | Tenure | Average of Unit Price ($ PSF) |
| Bishopgate Residences | Freehold | $3,908 |
| Ridgewood | 999 yrs from July 6, 1885 | $1,886 |
| Namly Court | Freehold | $1,751 |
| Fernhill Cottage | Freehold | $1,735 |
| Kent Ridge Hill Residences | 99 yrs from Nov 10, 2018 | $1,683 |
| Greenwood Mews | 103 yrs from Oct 3, 2011 | $1,602 |
| Botanic @ Cluny Park | Freehold | $1,462 |
| Affinity at Serangoon | 99 yrs from May 18, 2018 | $1,437 |
| Riverfront Residences | 99 yrs from May 31, 2018 | $1,427 |
| JC Ville | Freehold | $1,382 |
Unsurprisingly, freehold cluster homes make up the majority due to their premium pricing.
Bishopsgate Residences is a bit of a shocker with that price tag, but this is a Kajima project – this developer was also involved with Resorts World Sentosa and Marina Bay Financial Centre, hence the exorbitant price tag.
The 31-unit project is also close to the cluster of foreign embassies near the Grange Road area, so it may be targeted at the likes of ambassadors and dignitaries, or those who may rent to them.
These cluster housing projects were the cheapest:
| Project | Tenure | Average of Unit Price ($ PSF) |
| Northshore Bungalows | Freehold | $419 |
| Sungrove | 99 yrs from Dec 5, 1994 | $431 |
| Surin Villas | Freehold | $560 |
| The Woods | 99 yrs from March 9, 2010 | $567 |
| The Hilloft | 999 yrs from Oct 12, 1885 | $580 |
| Teresa Villas | Freehold | $617 |
| Kiara 10 | Freehold | $629 |
| The Shaughnessy | 99 yrs from March 19, 2001 | $679 |
| Aston Residences | 946 yrs from Jan 1, 1938 | $680 |
| Lynwood Eight | Freehold | $682 |
Northshore Bungalows and Sungrove are probably eye-openers for the low price.
For Northshore, this is due to its location at Punggol Point back in 1995. This was long before any of the amenities at Punggol today existed.
Waterway Point was only finished 21 years after this condo was built, and it was about the same time before there was an LRT stop. So it was launched at very low prices given the poor accessibility and lack of amenities, but you could expect it to rise in the coming years.
For Sun Grove, you can check out this article for a bit more on this West Coast landed area. This is another example of an area that was undesirable in the '90s, as there was poor accessibility and amenities.
The area is heavily improved today, but it's still one of the most affordable places to buy a landed property.
There's no getting around the fact that, when it comes to cluster homes with their small unit counts, performance can be very unpredictable
As such, these projects are better suited for own-stay use. For resale gains, condos tend to be more predictable.
Cluster homes are angled at homeowners who like landed living, but cannot handle serious maintenance issues like roofing, repainting the facade, or building their own pool.
ALSO READ: Can old leasehold condos still be profitable? A case study of 355 leasehold condos
This article was first published in Stackedhomes.
