Why are integrated developments so popular with buyers?

By Elizabeth Choong

/ EdgeProp Singapore |

May 31, 2023 12:11 PM SGT

South Beach Residences has a higher average price than other 99-year leasehold developments within a 1km radius including another integrated development. (Photo credit: South Beach Consortium)

SINGAPORE (EDGEPROP) - Integrated developments are popular with buyers who appreciate having everything at their doorstep. An integrated development usually offers convenience and connectivity to residents by combining residential units with a shopping mall and a transport hub. As such, many buyers are willing to pay more for a residential unit that is part of an integrated development.

Newly launched integrated developments are snapped up

Launches of residential units in new integrated developments are snapped up very quickly by buyers. Piccadilly Grand sold 77% of its units when it was launched in May last year. The take-up rate for the development, which is integrated with Farrer Park MRT Station, has increased to 91.4% as of April.

Lentor Modern is an integrated development with a direct link to Lentor MRT Station. During its launch in September last year, 84% of its residential units were sold, and the take-up rate has since increased to 88.6% as of April.

This year started with the launch of Sceneca Residence, a 268-unit development integrated with a retail mall (Sceneca Square) and Tanah Merah MRT Station. As of April, the take-up rate for the development was 61.2%, up from 60% during its launch in January.

The Reserve Residences drew a crowd of nearly 6,000 during its preview on May 13, despite the cooling measures introduced on April 27. The development is integrated with the Beauty World MRT Station. During its launch this month, buyers snapped up 71% of the residential units.

Completed integrated developments are popular with buyers

Residential properties in integrated developments tend to command higher resale prices compared to neighbouring condos and mixed developments. However, such units are still popular with buyers because these units usually fetch higher rents. Additionally, owners of residential units in an integrated development tend to earn a higher profit after selling their unit.

We delve deeper into integrated developments by comparing the price trend, average rent, and profitability of three such developments with mixed developments and condos in the vicinity.

The Poiz Residences: an integrated development in district 13

The Poiz Residences is a 99-year leasehold integrated development with 731 residential units that obtained temporary occupation permit (TOP) in 2018. It is located along Meyappa Chettair Road and is integrated with Potong Pasir MRT Station and The Poiz Centre.

Other nearby amenities include The Venue Shoppes, Broadway Food Centre, St. Andrew's Junior School, St. Andrew's Secondary School, St. Andrew's Junior College, Kallang River, and the Pan Island Expressway.

There are four 99-year leasehold condos (Woodsville 28, Nin Residence, Sennett Residence, and Sant Ritz) and a 99-year leasehold mixed development (The Venue Residences) within a 500m radius.

Based on sales transactions over the last 12 months, The Poiz Residences has the highest average price of $1,809 psf and the highest average rent of $6.05 psf per month compared to the other residential developments.

The Venue Residences is a mixed development with a mall, namely The Venue Shoppes. However, The Venue Residences still has a lower average price of $1,644 psf and a lower average rent of $4.85 psf per month compared to The Poiz Residences. There were no sale transactions for Woodsville 28 in the last 12 months, so it was not included in Table 2 below.

The average price for The Poiz Residences consistently exceeds the average price for The Venue Residences and the overall average price for 99-year leasehold condos in district 13. The Poiz Residences also boasts a higher current average price of $1,863 psf compared to The Venue Residences ($1,625 psf) and other 99-year leasehold condos in the same district ($1,742 psf).

Based on transactions concluded during the last 12 months, The Poiz Residences achieved 42 profitable transactions compared to 18 profitable transactions for The Venue Residences. Both developments do not have any unprofitable transactions.

Profits for owners at The Poiz Residences range from $115,000 to $1.17 million, while owners at The Venue Residences made significantly lower profits that range from $85,000 to $494,000.

Hillion Residences: integrated development along Jelebu Road

Hillion Residences, located in district 23, is a 99-year leasehold integrated development that obtained TOP in 2017. It consists of 546 residential units and is integrated with Hillion Mall, Bukit Panjang MRT Station, and Bukit Panjang Bus Interchange. The MRT station is served by the Downtown line and a Light Rapid Transit line.

Other nearby amenities include Bukit Panjang Plaza, Greenridge Shopping Centre, Bukit Panjang Primary School, West View Primary School, and Zhenghua Primary School.

The Tennery, Maysprings, and The Linear are located within a 500m radius of Hillion Residences. The Tennery is a 99-year leasehold mixed development with a mall, namely Junction 10. Maysprings is a 99-year leasehold condo, while The Linear is a 999-year leasehold condo.

Based on transactions over the last 12 months, Hillion Residences has the highest average price of $1,651 psf and the highest average rent of $5.69 psf per month. The Tennery has the second-highest average price of $1,250 psf and the second-highest average rent of $4.22 psf per month.

The higher prices and rents commanded by these two developments could be attributed to the additional convenience enjoyed by their residents, as both projects have other uses incorporated within the same development.

The average price for Hillion Residences is consistently above that of The Tennery and 99-year leasehold condos in district 23. In contrast, the average price for The Tennery has dipped slightly over the years, reaching the current average price of $1,272 psf. This brings the average price for The Tennery to the same level as the overall current average price for 99-year leasehold condos in the same district ($1,273 psf). However, the current average price for Hillion Residences is significantly higher at $1,709 psf.

During the last 12 months, 26 owners who sold their units at Hillion Residences made profits ranging from $11,000 to $713,000, while 24 owners from The Tennery made much smaller profits ranging from almost $2,000 to about $138,000.

There were no unprofitable transactions for Hillion Residences based on transactions over the last 12 months. In contrast, six owners of units in The Tennery made losses ranging from under $1,000 to about $128,000 when they sold their units in the last 12 months. With the exception of the transaction that resulted in a loss of about $128,000 in June last year, the remaining unprofitable transactions for The Tennery resulted in much smaller losses of under $35,000.

South Beach Residences: integrated development within walking distance of two MRT stations

South Beach Residences is an integrated development located along Beach Road in district 7 that obtained TOP in 2016. In addition to 190 residential units, the 99-year leasehold project features an office tower (South Beach Tower), retail shops (South Beach Avenue), and a hotel (JW Marriot Hotel Singapore South Beach). It is also directly linked to Esplanade MRT Station and is just a short walk away from the dual-line City Hall MRT Station.

Other nearby amenities include Duo Galleria, Raffles City, Marina Square, Suntec City, Bugis Junction, Bras Basah Complex, Central Public Library, Albert Centre Market and Food Centre, Esplanade – Theatres On the Bay, School of the Arts Singapore, and the upcoming Guoco Midtown.

There are only three uncompleted 99-year leasehold condos found within a 500m radius of South Beach Residences, namely The M, Midtown Modern, and Midtown Bay.

If the proximity radius is expanded to 1km, another 99-year leasehold integrated development, Duo Residences, can be found. Duo Residences is integrated with the dual-line Bugis MRT Station, an office tower, and retail shops (Duo Galleria).

There are also eight 99-year leasehold condos within a 1km radius, namely Eden Residences Capitol, Concourse Skyline, Sunshine Plaza, Burlington Square, The Bencoolen, One North Bridge, The Plaza, and High Street Centre. However, Burlington Square, The Bencoolen, and The Plaza may not be suitable comparisons to South Beach Residences as they are older developments that obtained TOP before 2000. Additionally, One North Bridge and High Street Centre are not included in Table 7 below because there have been no sales transactions for these two developments in the last 12 months.

Based on transactions over the last 12 months, South Beach Residences has the highest average price of $4,410 psf and the highest average rent of $9.63 psf per month compared to its neighbours within a 1km radius. On the other hand, Duo Residences has a lower average price of $2,260 psf and an average rent of $7.18 psf per month.

Despite both projects being integrated developments, South Beach Residences could have outperformed Duo Residences due to its superior locational attributes. Duo Residences is located on the quieter side of the Bugis neighbourhood and further away from Bugis Junction and Raffles City. In contrast, South Beach Residences is in the heart of all activities as it is a short walk to Raffles City and Suntec City.

Additionally, South Beach Residences benefits from its proximity to City Hall and Esplanade MRT Stations which provides its residents with easy access to three MRT lines. In contrast, Duo Residences has only dual-line Bugis MRT Station within walking distance.

The average price for South Beach Residences consistently trends above the average price for Duo Residences and the overall average price for 99-year leasehold condos in district 7. Furthermore, the average price for South Beach Residences has grown to the current $4,504 psf, while the average price for Duo Residences has remained stagnant at the current $2,284 psf, just above the current average price of $1,923 psf for 99-year leasehold condos in district 7.

Two owners who sold their units in South Beach Residences during the last 12 months made profits of $1.8 million and $2.2 million, respectively. In comparison, eight owners of units in Duo Residences made smaller profits ranging from about $140,000 to $2.1 million.

While no owners in South Beach Residences made losses when they sold their units in the last 12 months, the same cannot be said for Duo Residences. Three owners from Duo Residences made losses ranging from about $31,000 to $150,000 when they sold their units during the last 12 months.

What’s next?

More integrated developments are expected to be on the cards, driven by the popularity of existing and new integrated developments among buyers. The Marina South precinct is poised to be the next area of interest.

URA envisions the precinct as a mixed-use neighbourhood comprising housing, shopping malls and office towers. Upon completion, the Marina South precinct is expected to be a 10-minute neighbourhood with approximately 10,000 homes. Future residents will be able to meet their daily needs with a short 10-minute walk from their homes.

Within the Marina South precinct, there are two government land sales (GLS) sites in close proximity to the Marina South MRT Station. The tender for the Marina Gardens Lane GLS site is set to close on June 27. URA estimates that the site can yield about 750 sq m (8,073 sq ft) of commercial space and 790 housing units. The tender documents also indicate that the future development will have a direct connection to the Marina South MRT station.

The Marina Gardens Crescent GLS site is located across the road from the Marina Gardens Lane GLS site and will be available for tender in June. According to estimations from URA, the site can accommodate approximately 6,000 sq m (64,584 sq ft) of commercial space and 775 housing units. At the time of writing, there is no official confirmation regarding the connectivity of the future development to the Marina South MRT station. However, considering the status of the land parcel as a white site and its close proximity to the MRT station, it is highly likely that the future development will have a direct link to Marina South MRT station.

Check out the latest listings near Piccadilly Grand, Lentor Modern, The Reserve Residences, The Poiz Residences, Woodsville 28, Nin Residence, Sennett Residence, Sant Ritz, The Venue Residences, Hillion Residences, The Tennery, Maysprings, The Linear, South Beach Residences, The M, Midtown Modern, Midtown Bay, Duo Residences, Eden Residences Capitol, Concourse Skyline, Sunshine Plaza, Burlington Square, The Bencoolen, The Plaza, High Street Centre

Tags: