Landed properties in Singapore come at a price. If you are looking for an affordable variety with the perks of condominium living, then Singapore’s cluster homes or strata-landed houses might be perfect. They offer lower costs than many other landed properties.
Strata-landed houses are a type of property in which the residents share access to gated facilities and security. They’re commonly associated with landed units, either part of a condominium development, or within a cluster.
Here are 8 reasons why cluster homes and/or strata landed homes offer the best of both worlds; living in a landed property with the facilities of a condominium.
- 1. Facilities of a Condominium.
Cluster houses or strata landed homes provide the best of both worlds at an affordable price point. The facilities are like those found in condos, with a gym, jacuzzi, playground, bbq pits, and swimming pool!
- 2. Good-class neighbourhoods.
What’s not to love about cluster homes? They’re strata-titled properties that can be built in landed housing estates such as Good Class Bungalow areas. This allows developers the liberty of erecting multi-floor residences next door, much like condo blocks with their focus on a central facility – luxurious swimming pools! Now you have your very own trendy villa community where each building has its own style but still looks connected at all times thanks to their common setting right outside any major city center location.
- 3. Flexibility in home configurations.
While there is standardization for high-rise condos based on room configurations, cluster housing projects offer low-rise options like terrace homes, semi-detached residences, and bungalows. These home designs may be developed either individually or combined together in different combinations to give homeowners the unique layouts they prefer or wish.
The beautiful facade, ample playgrounds, and swimming pools within the compound make cluster homes an excellent choice for families looking to live in landed housing. Not only does this provide privacy as children can play freely without fear but they can also create bonds with their neighbors.
- 4. Much more affordable than non-strata landed property.
Cluster houses cost less than typical landed properties with some costing as little as S$2 million or less. This makes them one-of-a-kind rare properties which always draw high demand from buyers especially considering how hard it will probably be to find another available anytime soon.
- 5. Bigger space and high rental income.
HDB upgraders and landlords can find a home and enjoy the benefits of living in cluster homes that are more spacious than what they would get from landed properties.
For landlords, cluster homes offer better rental ratios without paying too much more than other landed properties. The monthly rent for these types of accommodations will be about the same as it would if you were living on your own land, but with less responsibility. At the end of the day, it’s a win-win situation for both landlords and tenants.
- 6. Scarcity of cluster homes/strata landed properties.
The abundance of land in Singapore makes it difficult to find a place for development. As such, the supply and demand relationship between housing units with private open spaces or amenities like playgrounds has caused prices per square meter to increase exponentially over recent years as there is now greater competition among homeowners who want these types of homes than ever before.
However, a major change was made back in 2014 when URA changed their guidelines on how much space must be allocated towards communality facilities- builders are no longer allowed more than 30% but instead have been restricted at 20%.
- 7. Uniqueness and Privacy.
The amenities in cluster developments are more exclusive than those of condos. They’re naturally shared by fewer people, given the smaller residential units, and don’t have to worry about maintaining their exterior facade unlike landed properties because it’s included with housing development. Owners are advised to set up a non-profit corporation called a Management Corporation Strata Title (MCST).
The downside to cluster housing is that it typically costs more than larger condos for monthly maintenance charges because fewer people cover the shared facilities. However, as they are collectively owned by all residents in this type of development and there’s greater control over future additions or alterations project-wise due to strata ownership- some may find these perks worthwhile.
- 8. Ownership restrictions/limitations.
However, it is worth noting that cluster housing projects are classified as restricted properties. The Residential Property Act does not allow foreigners to purchase cluster homes, so it is important to obtain approval from the government.
To summarise, cluster homes offer the best of both worlds – affordability and low maintenance as compared to landed properties. With such a small population of people living in cluster homes, it’s no wonder that these projects are rare and lucrative for homeowners.