journo
27-10-22, 11:11
Is size important?
11 October 2022
https://i.imgur.com/jAB6eln.jpg
In recent years, mega condominium buildings with at least 1,000 units have sold extremely successfully. Parc Clematis sold 70% of its apartments on the first day of sales. Similarly, Treasure at Tampines sold 55.5% of its apartments on its first weekend of operation. Normanton Park was the best-selling project in 1H2021, selling 923 units, or over half of its total.
Singapore has 22 mega condominium buildings, including eight that are presently under construction. All of these megadevelopments have 99-year leases.
https://i.imgur.com/hZeq3rN.jpg
Treasure at Tampines is the largest unfinished megadevelopment (2,203 units). In addition, it is the only development with more than 2,000 apartments. D'Leedon (1,703 units) is the largest completed megadevelopment and the only megadevelopment in premium District 10.
District 19 (Hougang and Serangoon) has the most big projects of any district. Three of District 19's five megadevelopments are still under construction.
The average price of a unit in a megadevelopment ranges from $794 per square foot for Melville Park to $2,439 per square foot for Marina One Residences. Melville Park is the second-oldest megadevelopment, with a temporary occupancy permit (TOP) issued in 1996. Bayshore Park was the first to receive TOP in 1986.
Why are megaprojects appealing to buyers?
Some purchasers choose megadevelopments with at least 1,000 units because they have more family-friendly amenities. Mega complexes typically offer larger or more function facilities, allowing parents to hold parties or playdates for their children. The event rooms can also be used as a home office for parents who work from home. Some significant projects include retail and food and beverage outlets.
The Florence Residences, for example, will contain 15 themed pavilions, 12 clubs, and 128 facilities, including an 80m-long lagoon pool. Affinity at Serangoon will have five retail stores, wading pools, and a 50-meter lap pool, as well as three man-made islands with diverse facilities such as a clubhouse and a gym.
Furthermore, mega projects have more owners who must share the expense of common area and facility upkeep, as well as the cost of repairing or updating large-ticket components such as lifts. This might assist to reduce the regular maintenance expenses that each unit owner must pay.
As a result, megaprojects tend to attract families with school-aged children.
What about small-scale projects with less than 100 units?
Boutique condominium complexes with less than 100 units fall into two categories: premium developments that provide purchasers exclusivity and solitude, and no-frills developments with minimal amenities.
Niche luxury developments typically attract well-heeled local and foreign purchasers ready to pay a premium for seclusion and exclusivity. Buyers like the distinctive design elements, vast common areas, and lush landscaping that are typical of these opulent apartments. Due of the restricted number of units in these complexes, a unit is frequently seen as a trophy house and status symbol.
Small, no-frills projects often attract customers searching for a low-cost individual home or investment property. They do not anticipate using the communal amenities, therefore having fewer facilities in the complex does not bother them. Furthermore, fewer common amenities mean reduced maintenance costs for owners. As a result, these no-frills boutique complexes tend to attract singles or couples without children who place a premium on price.
Megadevelopments are located in District 19
District 19 has the most mega projects, with five, compared to the other districts, which have no more than two. Three of District 19's five megadevelopments, namely Riverfront Residences, The Florence Residences, and Affinity at Serangoon, are still under construction.
https://i.imgur.com/ycvEfrP.jpg
Within a 500m radius of three megadevelopments in District 19, there are boutique projects. The Minton, The Florence Residences, and Affinity at Serangoon are the three developments. The Florence Residences is the most costly of the three at $1,739 psf and has the fewest surrounding boutique projects.
The Minton, on the other hand, has the lowest average price ($1,220 psf) and the most surrounding boutique projects. The ten boutique condominiums are all freehold constructions, as opposed to The Minton, which has a 99-year lease. Furthermore, nine of the boutique condominiums have fewer than 50 units, with the exception of the 99-unit Suites @ Paya Lebar. Suites @ Paya Lebar is directly across the street from The Minton.
https://i.imgur.com/MqK3QjA.jpg
Suites At Paya Lebar is the most costly boutique development near The Minton, at $1,445 psf – more more expensive than The Minton ($1,220 psf), despite both condominiums receiving TOP in 2013. The pricing difference might be due to the fact that Suites @ Paya Lebar is freehold whereas The Minton is 99-year leasehold.
Since 2017, the average sales price for The Minton has been trending lower than the average resale price for condominiums in District 19. The average price for Suites @ Paya Lebar, on the other hand, is consistently higher than for The Minton and District 19.
https://i.imgur.com/mi3s4O5.jpg
The Minton's average selling price is also less unpredictable than Suites @ Paya Lebar. The Minton's average sales price peaked at $1,127 psf in 2015 before falling. However, The Minton's average price has progressively rebounded and surpassed the peak established in 2015. In comparison, the average price for Suites @ Paya Lebar reached a record high in 2015 ($1,543 psf) before falling and remaining below the top thereafter.
Suites At Paya Lebar only has one or two-bedroom units, making the complex unsuitable for families. Furthermore, according to the 2020 population census, just 8% of people in the Hougang planning area are renters, implying lower rental demand for the modest apartments in Suites @ Paya Lebar. The nearest MRT station, Kovan, is around 900 metres distant, significantly lowering rental demand.
Both condominiums are within walking distance of Paya Lebar Methodist Girls' School, making the location appealing to parents with girls. Larger projects with more amenities and roomy units are often preferred by families. As a result, despite its leasehold tenure, The Minton is predicted to have higher buying demand than Suites @ Paya Lebar. The Minton's lower price point adds to its allure.
https://i.imgur.com/VSkb13D.jpg
When comparing unfinished condominiums in District 19
Affinity at Serangoon features the most boutique projects within a 500m radius of the unfinished mega complexes in District 19. Five of the seven boutique developments adjacent Affinity at Serangoon are leased for 999 years, while one is freehold. Parkwood Residences, the last unfinished construction, with a 99-year lease.
Parkwood Residences and Affinity at Serangoon are diagonally opposite one other. Oxley Holdings is the developer of both condos.
https://i.imgur.com/g8qUaXZ.jpg
Parkwood Residences has just 18 units, most of which are three-bedroom homes ranging in size from 800 to 1,000 square feet. This is an example of a boutique development aimed towards individuals or couples who treasure their privacy. Parkwood Residences is all sold out, however Affinity at Serangoon still has six unsold condominium apartments.
Affinity at Serangoon and Parkwood Residences have average prices of $1,580 psf and $1,562 psf based on new sales transactions in the last 12 months. However, the average price for Affinity at Serangoon has risen to $1,748 psf in 3Q2022, while Parkwood Residences has only risen to $1,580 psf.
However, because Parkwood Residences has a limited number of units, there will be fewer sales, and each transaction will have a higher influence on the total average price for the property. On the other hand, because Affinity at Serangoon has so many units, each transaction has a less influence on the total average price for the complex.
https://i.imgur.com/D3sSZzf.jpg
Within a 500m radius of Parc Esta, there are 25 boutique complexes
Parc Esta features the most boutique developments within a 500m radius of all large developments. Parc Esta is an exception in that all condominiums within a 500m radius are boutique constructions. Furthermore, Parc Esta is the sole leasehold construction in the area.
https://i.imgur.com/OJveiva.jpg
Le Reve is the largest boutique development, with 65 apartments, followed by Eunos Park (55 units). Despite the fact that all three complexes are in District 14, Parc Esta is in Geylang, while Le Reve and Eunos Park are in Bedok.
Parc Esta is the youngest of the three, having won TOP this year. TOP was awarded to Le Reve in 2007 and Eunos Park in 1995, respectively.
https://i.imgur.com/XQYMjZv.jpg
Parc Esta ($2,022 psf) outperforms Le Reve ($1,228 psf) and Eunos Park ($1,074 psf) in terms of average price. This might be owing to the two boutique developments being affected by lease decay. Average resale prices in Le Reve and Eunos Park are also lower than those in the Bedok planning region.
https://i.imgur.com/V2JzQnl.jpg
For a modest family, Le Reve might be a reasonable balance between the price and age of a condominium. The apartments in the complex offer two or three bedrooms. Eunos MRT Station is 500m away, and there are two elementary schools within 1km.
https://i.imgur.com/4VvilWQ.jpg
D'Leedon is the only major project in prestigious District 10
D'Leedon is the sole massive condominium construction in prestigious District 10, with none in Districts 9 or 11. Within a 500m radius of D'Leedon, there are seven boutique projects, six of which are freehold and Charming Garden is 999-year leasehold.
The Cornwall, with 99 units, is the largest boutique development, followed by the unfinished Wilshire Residences, with 85 units.
https://i.imgur.com/siJ37FK.jpg
Wilshire Residences ($2,631 psf) is the most expensive boutique development, followed by The Cornwall ($1,949 psf). Both boutique projects are more expensive than D'Leedon ($1,751 psf). The price difference might be explained by tenure, as both boutique developments are freehold, whilst D'Leedon is leasehold.
https://i.imgur.com/03BUUQm.jpg
For families looking to reside in a desirable location, D'Leedon may be a more inexpensive choice. The condominium is located within a one-kilometer radius of two prominent schools, making it particularly appealing to parents. D'Leedon is also close to the Empress Road Market and Food Centre and two MRT stations.
https://i.imgur.com/1nRBPgM.jpg
According to URA caveats, 55 apartments of Wilshire Residences have been sold, suggesting a 64.7% take-up rate. Investors with big finances may consider adding this freehold property in a prestigious neighbourhood to their portfolio, especially since the 2020 census shows that 16% of people in the Bukit Timah planning area are renters, which is higher than the islandwide average of 12.1%.
Another neighbouring unfinished construction is the 638-unit Leedon Green ($2,780 psf), which is $1,029 psf more costly than D'Leedon. The greater price might be ascribed to Leedon Green's freehold tenancy against D'Leedon's leasehold tenure. According to URA data, 473 apartments in Leedon Green have been sold, representing a take-up rate of 74.1%.
Wilshire Residences and Leedon Green average prices are trending lower than new sale prices for freehold condominiums in District 10, making the two complexes worth considering for prospective purchasers.
https://i.imgur.com/TzOHCrW.jpg
To summarise:
- We may conclude from comparing mega-projects to neighbouring boutique developments that there is minimal association between development size and average unit price. Prices vary according on location, as well as the age and tenure of the development.
- With their various family-friendly amenities, megadevelopments tend to attract families.
- Boutique projects can range from simple no-frills condominiums that appeal to purchasers because of their price to exquisite condominiums that provide owners with exclusivity and seclusion.
- District 19 has the most mega-developments of any district in Singapore, at five. Three of them are still under construction: Riverfront Residences, The Florence Residences, and Affinity at Serangoon.
- The most nearby boutique projects, appropriate for couples or investors, are in the recently finished Parc Esta.
- D'Leedon is the only mega-development in a high-traffic area. Its leasehold tenancy makes it less expensive than nearby freehold boutique buildings.
- There is no clear answer to whether sort of development is a better investment. It is determined by the buyer's profile and home requirements.
11 October 2022
https://i.imgur.com/jAB6eln.jpg
In recent years, mega condominium buildings with at least 1,000 units have sold extremely successfully. Parc Clematis sold 70% of its apartments on the first day of sales. Similarly, Treasure at Tampines sold 55.5% of its apartments on its first weekend of operation. Normanton Park was the best-selling project in 1H2021, selling 923 units, or over half of its total.
Singapore has 22 mega condominium buildings, including eight that are presently under construction. All of these megadevelopments have 99-year leases.
https://i.imgur.com/hZeq3rN.jpg
Treasure at Tampines is the largest unfinished megadevelopment (2,203 units). In addition, it is the only development with more than 2,000 apartments. D'Leedon (1,703 units) is the largest completed megadevelopment and the only megadevelopment in premium District 10.
District 19 (Hougang and Serangoon) has the most big projects of any district. Three of District 19's five megadevelopments are still under construction.
The average price of a unit in a megadevelopment ranges from $794 per square foot for Melville Park to $2,439 per square foot for Marina One Residences. Melville Park is the second-oldest megadevelopment, with a temporary occupancy permit (TOP) issued in 1996. Bayshore Park was the first to receive TOP in 1986.
Why are megaprojects appealing to buyers?
Some purchasers choose megadevelopments with at least 1,000 units because they have more family-friendly amenities. Mega complexes typically offer larger or more function facilities, allowing parents to hold parties or playdates for their children. The event rooms can also be used as a home office for parents who work from home. Some significant projects include retail and food and beverage outlets.
The Florence Residences, for example, will contain 15 themed pavilions, 12 clubs, and 128 facilities, including an 80m-long lagoon pool. Affinity at Serangoon will have five retail stores, wading pools, and a 50-meter lap pool, as well as three man-made islands with diverse facilities such as a clubhouse and a gym.
Furthermore, mega projects have more owners who must share the expense of common area and facility upkeep, as well as the cost of repairing or updating large-ticket components such as lifts. This might assist to reduce the regular maintenance expenses that each unit owner must pay.
As a result, megaprojects tend to attract families with school-aged children.
What about small-scale projects with less than 100 units?
Boutique condominium complexes with less than 100 units fall into two categories: premium developments that provide purchasers exclusivity and solitude, and no-frills developments with minimal amenities.
Niche luxury developments typically attract well-heeled local and foreign purchasers ready to pay a premium for seclusion and exclusivity. Buyers like the distinctive design elements, vast common areas, and lush landscaping that are typical of these opulent apartments. Due of the restricted number of units in these complexes, a unit is frequently seen as a trophy house and status symbol.
Small, no-frills projects often attract customers searching for a low-cost individual home or investment property. They do not anticipate using the communal amenities, therefore having fewer facilities in the complex does not bother them. Furthermore, fewer common amenities mean reduced maintenance costs for owners. As a result, these no-frills boutique complexes tend to attract singles or couples without children who place a premium on price.
Megadevelopments are located in District 19
District 19 has the most mega projects, with five, compared to the other districts, which have no more than two. Three of District 19's five megadevelopments, namely Riverfront Residences, The Florence Residences, and Affinity at Serangoon, are still under construction.
https://i.imgur.com/ycvEfrP.jpg
Within a 500m radius of three megadevelopments in District 19, there are boutique projects. The Minton, The Florence Residences, and Affinity at Serangoon are the three developments. The Florence Residences is the most costly of the three at $1,739 psf and has the fewest surrounding boutique projects.
The Minton, on the other hand, has the lowest average price ($1,220 psf) and the most surrounding boutique projects. The ten boutique condominiums are all freehold constructions, as opposed to The Minton, which has a 99-year lease. Furthermore, nine of the boutique condominiums have fewer than 50 units, with the exception of the 99-unit Suites @ Paya Lebar. Suites @ Paya Lebar is directly across the street from The Minton.
https://i.imgur.com/MqK3QjA.jpg
Suites At Paya Lebar is the most costly boutique development near The Minton, at $1,445 psf – more more expensive than The Minton ($1,220 psf), despite both condominiums receiving TOP in 2013. The pricing difference might be due to the fact that Suites @ Paya Lebar is freehold whereas The Minton is 99-year leasehold.
Since 2017, the average sales price for The Minton has been trending lower than the average resale price for condominiums in District 19. The average price for Suites @ Paya Lebar, on the other hand, is consistently higher than for The Minton and District 19.
https://i.imgur.com/mi3s4O5.jpg
The Minton's average selling price is also less unpredictable than Suites @ Paya Lebar. The Minton's average sales price peaked at $1,127 psf in 2015 before falling. However, The Minton's average price has progressively rebounded and surpassed the peak established in 2015. In comparison, the average price for Suites @ Paya Lebar reached a record high in 2015 ($1,543 psf) before falling and remaining below the top thereafter.
Suites At Paya Lebar only has one or two-bedroom units, making the complex unsuitable for families. Furthermore, according to the 2020 population census, just 8% of people in the Hougang planning area are renters, implying lower rental demand for the modest apartments in Suites @ Paya Lebar. The nearest MRT station, Kovan, is around 900 metres distant, significantly lowering rental demand.
Both condominiums are within walking distance of Paya Lebar Methodist Girls' School, making the location appealing to parents with girls. Larger projects with more amenities and roomy units are often preferred by families. As a result, despite its leasehold tenure, The Minton is predicted to have higher buying demand than Suites @ Paya Lebar. The Minton's lower price point adds to its allure.
https://i.imgur.com/VSkb13D.jpg
When comparing unfinished condominiums in District 19
Affinity at Serangoon features the most boutique projects within a 500m radius of the unfinished mega complexes in District 19. Five of the seven boutique developments adjacent Affinity at Serangoon are leased for 999 years, while one is freehold. Parkwood Residences, the last unfinished construction, with a 99-year lease.
Parkwood Residences and Affinity at Serangoon are diagonally opposite one other. Oxley Holdings is the developer of both condos.
https://i.imgur.com/g8qUaXZ.jpg
Parkwood Residences has just 18 units, most of which are three-bedroom homes ranging in size from 800 to 1,000 square feet. This is an example of a boutique development aimed towards individuals or couples who treasure their privacy. Parkwood Residences is all sold out, however Affinity at Serangoon still has six unsold condominium apartments.
Affinity at Serangoon and Parkwood Residences have average prices of $1,580 psf and $1,562 psf based on new sales transactions in the last 12 months. However, the average price for Affinity at Serangoon has risen to $1,748 psf in 3Q2022, while Parkwood Residences has only risen to $1,580 psf.
However, because Parkwood Residences has a limited number of units, there will be fewer sales, and each transaction will have a higher influence on the total average price for the property. On the other hand, because Affinity at Serangoon has so many units, each transaction has a less influence on the total average price for the complex.
https://i.imgur.com/D3sSZzf.jpg
Within a 500m radius of Parc Esta, there are 25 boutique complexes
Parc Esta features the most boutique developments within a 500m radius of all large developments. Parc Esta is an exception in that all condominiums within a 500m radius are boutique constructions. Furthermore, Parc Esta is the sole leasehold construction in the area.
https://i.imgur.com/OJveiva.jpg
Le Reve is the largest boutique development, with 65 apartments, followed by Eunos Park (55 units). Despite the fact that all three complexes are in District 14, Parc Esta is in Geylang, while Le Reve and Eunos Park are in Bedok.
Parc Esta is the youngest of the three, having won TOP this year. TOP was awarded to Le Reve in 2007 and Eunos Park in 1995, respectively.
https://i.imgur.com/XQYMjZv.jpg
Parc Esta ($2,022 psf) outperforms Le Reve ($1,228 psf) and Eunos Park ($1,074 psf) in terms of average price. This might be owing to the two boutique developments being affected by lease decay. Average resale prices in Le Reve and Eunos Park are also lower than those in the Bedok planning region.
https://i.imgur.com/V2JzQnl.jpg
For a modest family, Le Reve might be a reasonable balance between the price and age of a condominium. The apartments in the complex offer two or three bedrooms. Eunos MRT Station is 500m away, and there are two elementary schools within 1km.
https://i.imgur.com/4VvilWQ.jpg
D'Leedon is the only major project in prestigious District 10
D'Leedon is the sole massive condominium construction in prestigious District 10, with none in Districts 9 or 11. Within a 500m radius of D'Leedon, there are seven boutique projects, six of which are freehold and Charming Garden is 999-year leasehold.
The Cornwall, with 99 units, is the largest boutique development, followed by the unfinished Wilshire Residences, with 85 units.
https://i.imgur.com/siJ37FK.jpg
Wilshire Residences ($2,631 psf) is the most expensive boutique development, followed by The Cornwall ($1,949 psf). Both boutique projects are more expensive than D'Leedon ($1,751 psf). The price difference might be explained by tenure, as both boutique developments are freehold, whilst D'Leedon is leasehold.
https://i.imgur.com/03BUUQm.jpg
For families looking to reside in a desirable location, D'Leedon may be a more inexpensive choice. The condominium is located within a one-kilometer radius of two prominent schools, making it particularly appealing to parents. D'Leedon is also close to the Empress Road Market and Food Centre and two MRT stations.
https://i.imgur.com/1nRBPgM.jpg
According to URA caveats, 55 apartments of Wilshire Residences have been sold, suggesting a 64.7% take-up rate. Investors with big finances may consider adding this freehold property in a prestigious neighbourhood to their portfolio, especially since the 2020 census shows that 16% of people in the Bukit Timah planning area are renters, which is higher than the islandwide average of 12.1%.
Another neighbouring unfinished construction is the 638-unit Leedon Green ($2,780 psf), which is $1,029 psf more costly than D'Leedon. The greater price might be ascribed to Leedon Green's freehold tenancy against D'Leedon's leasehold tenure. According to URA data, 473 apartments in Leedon Green have been sold, representing a take-up rate of 74.1%.
Wilshire Residences and Leedon Green average prices are trending lower than new sale prices for freehold condominiums in District 10, making the two complexes worth considering for prospective purchasers.
https://i.imgur.com/TzOHCrW.jpg
To summarise:
- We may conclude from comparing mega-projects to neighbouring boutique developments that there is minimal association between development size and average unit price. Prices vary according on location, as well as the age and tenure of the development.
- With their various family-friendly amenities, megadevelopments tend to attract families.
- Boutique projects can range from simple no-frills condominiums that appeal to purchasers because of their price to exquisite condominiums that provide owners with exclusivity and seclusion.
- District 19 has the most mega-developments of any district in Singapore, at five. Three of them are still under construction: Riverfront Residences, The Florence Residences, and Affinity at Serangoon.
- The most nearby boutique projects, appropriate for couples or investors, are in the recently finished Parc Esta.
- D'Leedon is the only mega-development in a high-traffic area. Its leasehold tenancy makes it less expensive than nearby freehold boutique buildings.
- There is no clear answer to whether sort of development is a better investment. It is determined by the buyer's profile and home requirements.