We define mega condo developments as those with at least 1,000 condo units. Thus far, there are a total of 24 mega condo developments in Singapore (see Table 1). Of these 24 developments, 23 are completed, while Grand Dunman is still under construction. Notably, all 24 condos are 99-year leasehold developments.

Combined, the 24 developments feature a total of 30,398 condo units. Seven of these developments also include a combined total of 135 strata-landed units. These seven developments are Normanton Park, Parc Clematis, D’Leedon, Riverfront Residences, Kingsford Waterbay, Affinity at Serangoon, and High Park Residences.

Thus far, Treasure at Tampines is the only development with over 2,000 units, while D’Leedon is the only mega development located in a prime district. Meanwhile, The Sail @ Marina Bay has recorded the highest number of unprofitable transactions among mega developments. We will conduct a deep dive into these three mega developments.

Read also: ANALYSIS: Numerous condo launches have pushed this district to the top

---

---

Treasure at Tampines: only condo with over 2,000 units

Treasure at Tampines is the largest condo development in Singapore, with 2,203 units. It is also one of the newest mega developments, having obtained its temporary occupation permit (TOP) in 2023. No mega developments obtained their TOP last year.

Six other mega developments also obtained their TOP in 2023, namely Avenue South Residence (District 3), Normanton Park (District 5), Parc Clematis (District 5), Riverfront Residences (District 19), The Florence Residences (District 19), and Affinity at Serangoon (District 19). These developments collectively feature a total of 10,440 condo units, accounting for 34.3% of the total number of units across the 24 mega developments. The recent surge in completed mega developments may indicate the growing popularity of such projects.

Among the mega developments completed in 2023, Treasure at Tampines is the only one located in District 18. The condo is situated along Tampines Lane and is adjacent to Tampines Round Market and Food Centre. Primary schools within a 1km radius include Changkat Primary School, Chongzheng Primary School, Junyuan Primary School, Tampines Primary School, and Yumin Primary School (see Map 1).

Simei MRT Station is the nearest station, but it is approximately 670m away. However, this is mitigated by the nearby Pan Island Expressway.

During its launch weekend in March 2019, 272 out of the 490 units released for sale were sold. All units in Treasure at Tampines were sold by 2022.

In addition to its stellar sales performance, this massive development has proven to be very profitable for its sellers, recording 487 profitable transactions and only one unprofitable transaction since its launch. Of the 487 profitable transactions, 261 took place last year, and two were concluded this year. The 261 profitable transactions last year represent the highest among the 24 mega developments.

Read also: Is it a Good Deal?: A freehold four-bedder in D10 sold for $2,810 psf, seller made $2.6 million

The profits from last year’s transactions ranged from approximately $25,000 to $981,000, while the two profitable transactions this year recorded profits of $119,000 and $567,000. The lone unprofitable transaction for the condo occurred last year, resulting in a loss of $238,000.

Among last year’s profitable transactions, a five-bedroom unit on the second storey achieved the highest profit of $981,000. The seller had purchased the 1,690-sq ft unit in November 2020 for nearly $2.01 million ($1,188 psf) and sold it in January last year for almost $2.99 million ($1,768 psf).

Interestingly, the same unit was involved in the lone unprofitable transaction for Treasure at Tampines. The second owner sold the unit in December last year for $2.75 million ($1,627 psf), incurring a loss of $238,000 (see Table 2).

The unit has a regularly shaped layout, featuring an en-suite master bedroom and four common bedrooms that share two common bathrooms. It also has a long balcony that spans the entire width of the living area, Bedrooms 3 and 4, as well as part of Bedroom 2. Additionally, the unit includes a yard area, a utility room, and a bathroom located near the kitchen (see Floor Plan 1).

Two profitable transactions have been recorded for Treasure at Tampines this year. The higher profit of $269,000 was from a two-bedroom-plus-study unit on the seventh storey that measures 678 sq ft. The smaller profit of $174,000 came from a two-bedroom unit on the 12th storey that measures 592 sq ft (see Table 3).

The seller of the larger unit purchased it in September 2020 for $971,000 ($1,432 psf) and sold it in January for $1.24 million ($1,829 psf). Meanwhile, the seller of the smaller unit bought it in June 2020 for $856,000 ($1,446 psf) and sold it in January for $1.03 million ($1,740 psf).

Read also: ANALYSIS: Are larger units really in greater demand after the pandemic?

The larger unit features an en-suite master bedroom, as well as a common bedroom and bathroom. It also includes a study nook near the kitchen. Additionally, there is a balcony that is accessible from the living area (see Floor Plan 2).

The smaller unit does not have an en-suite master bedroom, as there is only one common bathroom in the unit (see Floor Plan 3). It also features a second bedroom and a compact, galley-style kitchen.

The profits for Treasure at Tampines could be driven by its steady price growth. Since its launch in 2019, the average price for the condo has surged by 33.3% to $1,785 psf (see Chart 1). Prices for Treasure at Tampines are expected to continue on an upward trend, based on transactions for Melville Park, the only other mega development in District 18. From 2019 to this year, the average price for Melville Park increased by 30.5% to $908 psf.

The strong price growth for Melville Park is notable despite its age. Having obtained its TOP in 1996, Melville Park is 29 years old, making it 27 years older than Treasure at Tampines. However, its age could explain why the average price of Treasure at Tampines is consistently higher than that of Melville Park.

Melville Park is located along Simei Street 1, which is within a 2km radius of Treasure at Tampines. While there are no MRT stations within walking distance, Melville Park is a short drive from the Pan Island Expressway. Additionally, there are three primary schools within a 1km radius, namely Chongzheng Primary School, East Spring Primary School, and Yumin Primary School (see Map 2).

D’Leedon: the only mega development in a prime district

Located along Leedon Heights in District 10, D’Leedon is the only mega development in a prime district. There are no mega developments in Districts 9 and 11. The condo is also within walking distance of Farrer Park MRT Station, and Empress Road Market and Food Centre. Nanyang Primary School and St. Margaret’s School (Secondary) are located within a 1km radius (see Map 3).

From 2016 to last year, the average resale price for D’Leedon rose by 27.3% to $1,973 psf (see Chart 2). The average resale prices for D’Leedon and 99-year leasehold condos in District 10 have moved in tandem from 2016 to 2022, indicating that D’Leedon, being a mega development, has had limited impact on its resale prices.

The average resale price for leasehold condos in the prime district surged by 30.8% y-o-y from 2022 to 2023, driven by the 151 transactions of Cuscaden Reserve at an average price of $3,043 psf. The 151 transactions for Cuscaden Reserve represented 53.4% of last year’s total resale transactions for leasehold condos in District 10. The sharp increase in transactions for Cuscaden Reserve was due to hefty discounts offered by the developer during its relaunch last year. The average resale price for leasehold condos in District 10 has since declined from $2,395 psf last year to $1,728 psf this year. Thus far, there have been no resale transactions for D’Leedon this year.

Since its launch, D’Leedon has achieved 499 profitable and 53 unprofitable transactions. Profits range from approximately $1,200 to $1.68 million, while losses range from approximately $200 to $612,000. Of the 499 profitable transactions, 64 took place last year, yielding profits from approximately $89,000 to $1.32 million. The most recent unprofitable transaction was concluded in 2023.

Last year’s most profitable transaction involved a four-bedroom unit on the 20th storey. The seller purchased the 2,110-sq ft unit in September 2012 for $3.28 million ($1,556 psf) and sold it in October last year for $4.6 million ($2,180 psf), resulting in a profit of approximately $1.32 million.

The unit features an en-suite master bedroom and Bedroom 2, while Bedrooms 3 and 4 share a common bathroom (see Floor Plan 4). It also includes a sizable balcony accessible via the living/dining area and Bedroom 4.

The unit that yielded the record-high profit of approximately $1.68 million is a 4,650-sq ft duplex penthouse on the 34th storey. The seller purchased the unit in November 2017 for $5.77 million ($1,242 psf) and sold it in July 2022 for $7.45 million ($1,602 psf).

The lower level of the penthouse features four en-suite bedrooms, a dry and wet kitchen, and two balconies. The master bedroom has direct access to one of the balconies, while the other balcony is accessible via the dining area. There is also a powder room near the dining area. The upper level features a private roof garden and a private pool (see Floor Plan 5).

The most unprofitable transaction involved a four-bedroom unit on the 31st storey. The seller purchased the 2,433-sq ft unit in February 2016 for $3.95 million ($1,626 psf) and sold it in August 2016 for $3.34 million ($1,374 psf), resulting in a loss of approximately $612,000.

The Sail @ Marina Bay: most unprofitable transactions last year

Among the mega developments, The Sail @ Marina Bay in District 1 had the most unprofitable transactions last year. However, the massive condo still achieved more profitable than unprofitable transactions, with 34 profitable and 18 unprofitable transactions. The Sail @ Marina Bay also achieved one profitable and no unprofitable transactions in January.

Reflections at Keppel Bay takes second place with 15 unprofitable transactions, while Kingsford Waterbay is ranked third with six unprofitable transactions, followed closely by Marina One Residences with five.

The Sail @ Marina Bay and Marina One Residences are the only mega developments in District 1, and they are located within walking distance of each other (see Map 4). Amenities within walking distance of The Sail @ Marina Bay include Downtown, Raffles Place, and Shenton Way MRT Stations, as well as Market Street Hawker Centre, Lau Pa Sat, and Marina Bay Link Mall.

The losses from The Sail @ Marina Bay’s 18 unprofitable transactions concluded last year ranged from breakeven to approximately $1.17 million. The highest loss involved a three-bedroom unit on the 59th storey, which was sold in April last year for $2.55 million ($2,154 psf). The seller had purchased the 1,184-sq ft unit in June 2011 for $3.72 million ($3,138 psf).

Notably, the same unit was previously involved in two profitable transactions. The first owner bought it in December 2004 for $1.16 million ($980 psf) and sold it in November 2010 for $3.02 million ($2,550 psf), resulting in a profit of approximately $1.86 million. The second owner sold the unit in June 2011 for $3.72 million ($3,318 psf), earning a smaller profit of approximately $696,000 (see Table 4).

The unit features an en-suite master bedroom, while the other two bedrooms share a common bathroom. It also has a living/dining area with an irregular shape (see Floor Plan 6).

Since its launch, The Sail @ Marina Bay has achieved 1,131 profitable and 230 unprofitable transactions. In comparison, 22 profitable and 26 unprofitable transactions have been recorded for Marina One Residences. Profits for The Sail @ Marina Bay range from approximately $320 to $6.66 million, while losses range from breakeven to $2.31 million, almost double the largest loss of $1.17 million from last year. Profits for Marina One Residences range from approximately $350 to $568,000, while losses range from approximately $5,800 to $562,000.

The average resale price for Marina One Residences ($2,049 psf) has consistently trended above that for The Sail @ Marina Bay ($1,903 psf) and 99-year leasehold condos in District 1 ($1,921 psf) (see Chart 3). This could be because Marina One Residences, having obtained TOP in 2017, is nine years younger than The Sail @ Marina Bay, which obtained TOP in 2008.

However, The Sail @ Marina Bay has achieved a smaller price decline of 3.2% since 2019, compared to the price drop of 10.6% for Marina One Residences. In contrast, the average resale price for leasehold condos in District 1 rose by 1.9%.

Notably, the largest loss of $2.31 million for The Sail @ Marina Bay involved a three-bedroom unit that was sold in 2020, when the average resale price for the condo reached a record-low of $1,834 psf. The seller sold the 1,970-sq ft unit for a lower-than-average price of $3.5 million ($1,777 psf), resulting in a loss of approximately $2.31 million. The seller had purchased the unit on the 27th storey in October 2007 for $5.81 million ($2,950 psf).

The poor performance of The Sail @ Marina Bay and Marina One Residences could be attributed to the lacklustre performance of leasehold condos in the Core Central Region (CCR) compared to those in the Rest of Central Region (RCR) and Outside Central Region (OCR).

The average resale price for such condos in the CCR ($2,281 psf) is consistently higher than its counterparts in the RCR ($2,012 psf) and OCR ($1,589 psf) (see Chart 4). However, the average resale price for CCR condos has inched up by 3.5% since 2019, compared to the stronger price growths of 27% for RCR condos and 41.9% for OCR condos. The already high prices for CCR condos could have capped their price growth because there is limited room for prices to increase further before they become unaffordable.

Conclusion

The numerous units in mega developments mean that prospective buyers have a variety of sizes and layouts to choose from. Furthermore, mega developments offer residents a wide range of facilities, which are usually appreciated by families with children. However, the larger number of neighbours in mega developments could mean more noise and less privacy. Residents could also face more competition when attempting to book popular facilities.

Our examination of mega developments indicates that the size of the development seems to have limited impact on its resale price. This could be due to inevitable competition from other sellers in the same development, as each mega development has over 1,000 units. Potential buyers have more choices within the development, giving them greater leverage for negotiation.

Like other condos, location and proximity to amenities appear to be the primary driving forces behind prices and profitability for each condo. Being in more desirable locations, the average resale prices for The Sail at Marina Bay and D’Leedon trend higher than those for Treasure at Tampines. However, The Sail at Marina Bay recorded the most unprofitable transactions among mega developments last year, while Treasure at Tampines achieved the most profitable transactions.

Check out the latest listings for The Sail @ Marina Bay, D'leedon, Treasure At Tampines, Marina One Residences properties

---