Everyone seems to think that landed is the most expensive housing option out there. And to be fair, they're not completely wrong. Landed homes cost millions of dollars. But when you look at it on a price per-square-foot (psf) basis, they are actually cheaper than condos.

Sounds counterintuitive, right? But it's true.

These days, some condos can easily cross $3,000 psf, whereas the average landed property transacts below $2,000 psf. Of course, the total price is a completely different conversation. And that's why most people can't afford it.

Look, comparing landed and condo is not exactly apples-to-apples. But maybe after reading this article, you might start seeing landed homes in a different light.

For landed homes, prices are typically calculated based on land area. This includes the full plot (gardens, driveways, and others) which aren't all fully usable as interior space. As a result, the total price is spread across a larger base, which lowers the psf.

In contrast, condos are priced based on strata floor area. Even though you don't technically "own" the land that the condo sits on and common areas, it's all included in the price you pay for your unit. Plus, you also benefit from shared facilities, views, and convenience. Altogether, it makes the psf higher.

This also explains why strata-landed like cluster houses often show psf levels closer to condos. They're measured the same way.

Additionally, there's less demand for landed homes. With a much higher entry point, landed properties tend to appeal to a more niche segment, primarily owner-occupiers with substantial budgets. Because the buyer pool is smaller and less competitive, there's naturally less upward pressure on psf.

Meanwhile, condos have strong demand. The lower entry price makes them far more accessible to a wider group of buyers. Financing is also generally easier to manage at that price point, which further expands the pool. This means developers can push psf upwards.

As we all know, land is a rare asset here in Singapore. There are only so many landed plots available, and that number isn't increasing, especially since URA strictly controls zoning and land-use. In fact, landed homes make up only around 5% of our total housing stock. This scarcity is what makes landed homes more valuable, and it's also why they have historically shown stronger appreciation.

In fact, over the past 20 years, landed homes have appreciated by 347.61%, compared to 234.41% for condos over the same period. That's not to say condos make bad investments, far from it. A 200%+ increase is still a very strong performance by any standard.

But the gap between the two is hard to ignore. Historically, landed homes tend to show stronger capital appreciation, and this difference becomes even more pronounced when you look at freehold properties, where the absence of lease decay further strengthens long-term value retention.

In the same period, freehold landed homes recorded growth of 360.3%, while freehold condos saw a comparatively lower 199.7% increase.

Source: PropNex Investment Suite

Yes, landed homes may be cheaper on a psf basis. But the reality is, you don't just buy property in psf. You also buy it in total amount of dollars, or price quantum. The main reason most people can't buy landed isn't a lack of interest, it's the financial barrier.

The upfront cost alone is already a stretch for many people, and that's before even considering the size of the mortgage you have to take on. Not to mention that a larger loan comes with stricter affordability checks and a heavier long-term financial commitment.

A typical entry-level condo might cost somewhere between $1 to $2 million. But a relatively modest landed home can easily start from $3 to $5 million. In 2025 alone, the average transacted price for a terrace house was $4,382,891, whereas the average transacted price for a one-bedder was less than a quarter of that at $1,067,636.

This gap in price quantum is the real reason condos remain the dominant choice for private homebuyers. It's not that people don't see the value in landed, it's that the upfront capital required is on a completely different level.

And beyond the purchase price, there are other practical considerations that come into play like taxes and maintenance cost. So while landed may be "cheaper" in a psf sense, it ultimately demands a much higher level of financial capacity to enter and sustain.

It all depends on your situation.

If you can truly afford it, and I'm not just talking about the purchase price here, but also the long-term holding costs and financial commitment, then landed does have stronger fundamentals. You're entering at a lower psf relative to what you're actually getting, so it's a better bang for your bucks. Plus, you benefit from that scarceness that supports long-term appreciation much better than what condos can offer.

Going back to the earlier chart, you can see that terrace house transactions averaged at $4,382,891, while 5-bedroom (and larger) condo transactions averaged about $4,485,342. You're practically looking at two very different housing types, but at almost the same price point (here, the condo is more expensive, even!).

At that point, you're choosing between two assets that cost roughly the same, but offer very different fundamentals. This is why some buyers might lean towards terrace houses. You actually own the land, get far more usable space compared to a condo (where it's mostly just your unit's floor area), more flexibility, and stronger long-term positioning for a similar price.

But, if your budget is better suited for a condo, then that is the right choice. Condos are more accessible, easier to manage, and still offer solid long-term growth.

The real decision isn't about which is "better," but what you can realistically sustain. Stretching yourself thin just to enter the landed market can easily put you in a financially vulnerable position, and that defeats the whole purpose of investing in property in the first place.

That said, for those who do have their sights set on landed, the more practical question is: how do you build up the initial capital to get there?

Well, instead of trying to jump straight into the landed market, think of property as a journey. This is essentially what the PWS framework is about. By being deliberate about what you buy, how long you hold, and when you exit, you position yourself to keep building your equity. With the right approach, your dream of owning a landed home can come true.