Higher redevelopment costs, rising Land Betterment Charge rates and the limited supply of newly built landed homes are reshaping Singapore’s landed property market.

SINGAPORE, SG / ACCESS Newswire / September 9, 2026 / Brand-new landed homes in Singapore are becoming increasingly expensive to develop, yet buyers continue to show interest in newly built properties that offer modern layouts, larger living spaces and move-in-ready convenience.

The trend comes against a resilient landed residential market. According to the Urban Redevelopment Authority (URA), landed property prices increased 7.6% in 2025, compared with 2.3% for non-landed private homes. Landed prices subsequently rose another 2.5% quarter-on-quarter in Q2 2026.

According to Brandon Ng of Landed7772, a Singapore real estate consultant specialising in landed properties, the price of a brand-new landed home needs to be understood in the context of what it now costs to acquire, redevelop and deliver one.

“Buyers sometimes compare the selling price of a brand-new landed home with an older property in the same estate. But the difference isn’t simply a ‘new house premium’. The developer has to acquire the land, fund the redevelopment, pay professional and regulatory costs, and absorb today’s construction costs before the completed home reaches the buyer.”

Rising Land Costs Are Only Part of the Equation

For developers rebuilding landed properties, the original acquisition price is just the starting point.

A redevelopment may involve architectural and engineering fees, demolition, construction, financing, regulatory approvals, materials, mechanical and electrical systems and other development expenses.

Modern landed homes have also become increasingly sophisticated.

Private lifts, swimming pools, double-volume living areas, extensive glazing, multiple ensuite bedrooms, wet and dry kitchens, premium stone finishes, smart-home systems, EV provisions and more complex structural designs can substantially increase the cost of delivering a new landed home.

“The specifications buyers expect today are very different from those of a landed house built 20 or 30 years ago,” Ng said. “A modern five- or six-bedroom home with a lift, pool and significantly larger built-up area is naturally a much more expensive product to construct.”

Land Betterment Charge Adds Another Cost Consideration

Land Betterment Charge, or LBC, can also form part of the redevelopment economics where a development results in an increase in land value arising from a chargeable planning or development decision.

For landed residential development, official LBC rates have been moving higher.

The Singapore Land Authority increased average Residential (Landed) LBC rates by 4% from 1 March 2026, with increases of approximately 3% to 10% across 93 of Singapore’s 118 geographical sectors.

That was followed by another increase from 1 September 2026, when landed residential LBC rates rose 3.5% on average. This time, 108 of the 118 geographical sectors recorded increases of approximately 2% to 8%.

The increases follow an average 3% rise in landed residential LBC rates in March 2025 and a further 0.4% average increase in September 2025.

For developers undertaking projects where LBC is applicable, these increases can contribute to higher overall development costs.

“When land, construction and regulatory-related costs rise, developers have less room to price a newly completed property at the same level as projects built several years earlier,” Ng said.

Why Buyers Are Still Choosing Brand-New Landed Homes

Despite higher prices, there is a straightforward reason some buyers are prepared to pay more: they are buying convenience and certainty as well as the property itself.

Buying an older landed property with the intention of rebuilding can mean taking responsibility for architects, consultants, approvals, demolition, construction, financing and potentially years before the family can occupy the finished home.

A completed or soon-to-be-completed landed home removes much of this process.

For buyers with busy professional or family lives, that can carry significant value.

“Not every landed buyer wants to become their own developer,” Ng said. “Some buyers are willing to pay a premium because they can see exactly what they are getting and don’t have to manage the entire redevelopment journey themselves.”

More House on the Same Land

Another important factor is the evolution of landed-home design.

A traditional landed house sitting on a 3,000 sq ft plot might have been constructed decades ago as a relatively modest two-storey property.

A modern redevelopment on a similarly sized plot may provide substantially more usable floor area through carefully designed multi-level configurations, subject to prevailing planning requirements.

This allows developers to create additional bedrooms, family areas, entertainment spaces, larger kitchens and other facilities without requiring the buyer to purchase substantially more land.

For families, this can change the value proposition.

“Many buyers aren’t just comparing land size anymore,” Ng said. “They’re looking at what the house actually gives them – the number of bedrooms, usable living space, privacy, entertainment areas and whether the home works for a multi-generational family.”

Scarcity Makes Brand-New Landed Different

Unlike condominiums, where a single development can introduce hundreds of new homes, brand-new landed properties typically enter the market in much smaller numbers.

Many projects originate from the redevelopment of an individual landed plot into a new detached home, a pair of semi-detached houses or a small collection of terrace homes.

That limits the number of new homes available within any particular landed neighbourhood.

The effect can be especially pronounced in mature estates such as Katong, Joo Chiat, Telok Kurau, Siglap, Frankel, Kembangan, Bedok and Upper East Coast, where the underlying landed housing stock is already established.

Buyers Are Paying More – But They Are Also More Selective

Higher development costs do not mean buyers will accept any asking price.

Ng says today’s landed buyers increasingly analyse recent transactions, land size, built-up area, tenure, frontage, location, specifications and construction quality before deciding whether a brand-new property represents value.

“Buyers are sophisticated. They understand that a brand-new home should command a premium, but they still want that premium to be justified.”

This makes the quality of the finished product increasingly important.

Architecture, layout efficiency, construction quality, materials and location can determine whether buyers perceive a new landed property’s premium as reasonable.

The Replacement-Cost Effect

One way of understanding the rising price of brand-new landed homes is through replacement cost.

A buyer considering an older landed property must look beyond its purchase price and consider what it could cost to transform that property into a comparable modern home.

That calculation may include the cost of the existing property, demolition, construction, professional fees, financing, applicable LBC and the time required to complete the redevelopment.

As these inputs rise, the economic gap between buying an older house and rebuilding it versus buying a completed new house can change.

“The right comparison isn’t always an $8 million old house versus a $10 million new house,” Ng explained. “The buyer should also ask what the $8 million house would ultimately cost after rebuilding it to the same standard – and how long that process would take.”

Outlook for Brand-New Landed Property

The fundamentals do not mean brand-new landed prices will rise indefinitely. Buyers remain price-sensitive, and broader economic, interest-rate and property-market conditions continue to matter.

However, the combination of limited landed supply, higher redevelopment costs, increasing LBC rates in applicable cases and buyers’ preference for modern move-in-ready homes helps explain why newly built landed properties can command significant premiums.

For Landed7772, the key consideration for buyers is therefore not simply whether a new landed home is expensive, but whether its asking price represents fair value relative to its location, land, built-up area, specifications and the cost of creating a comparable home.

“Brand-new landed property will always have a different cost structure from an older house,” Ng said. “What matters is whether the buyer is receiving enough additional value from the design, space, specifications, location and convenience to justify that difference.”

About Landed7772

Landed7772 is a Singapore landed-property team focusing in brand-new and resale landed homes, including terrace houses, semi-detached houses and detached properties.

Singapore real estate consultant Brandon Ng, Landed7772 provides landed-property listings, market insights and advisory services to buyers and sellers across Singapore, with extensive coverage of the East Coast and other established landed estates.

For more information about brand-new landed property in Singapore, visit bng7772.com.

Media Contact

Contact Person – Brandon Ng
Company – Landed7772
Address – Singapore
Phone no. – 6598487772
Website – bng7772.com

SOURCE: Landed7772

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