Why are integrated developments so popular with buyers?

By Elizabeth Choong

May 31, 2023


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)

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 Seneca Residence, a 268-unit development integrated with a retail mall (Seneca 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.



More at: https://www.edgeprop.sg/property-new...popular-buyers