Singapore: Condominium projects connected to an MRT station are highly sought after in the last decade. In specific, this refers to projects that are not only connected to an MRT station, but are often part of an integrated project with commercial retail shops such as a mall.
The integration project can be described as mixed-use development with a residential and wide commercial aspect that is linked seamlessly to a transport node and public areas in Alice Tan, analysis and consultancy manager at Knight Franks.
Savills Singapore’s Alan Cheong, accepts. “At your doorstep this is essentially convenience,” he added. “You save time if you would otherwise go shopping or take a bus or walk to the MRT station for 10 or 20 minutes.”
Recent Launch of Integrated Development at Paya Lebar
The Park Place Residences in Paya Lebar Quarter recently introduced by Lendlease is an illustration of an integrated construction in a private condo project. On the first weekend of sales, more than 250 units — nearly one-half of the 429— were caught at an average price of $1,801 ff.. After selling the first phase, the display suites have been closed and the second phase begins later.
The Residences Park Place is connected to the three office buildings with an office area of around one million sq ft and a 340,000 sq ft mall and Paya Lebar MRT Interchange.
The Park Place Residences average launch price of 12.5 percent higher than the Katong Regency average price of $ 1,600 psf. Katong Regency is a 244 freehold development situated on a one KM shopping center, which should be completed by 2019 walking distance from Paya Lebar MRT Interchange station, inside the Lendlease 429 unit of Park Place Residences at PLQ. The initiative was initiated in 2012 and finished in 2015. In less than a month, all devices were snapped.
Beside Katong Regency, GuocoLand’s 1,024-unit Sims Urban Oasis would be the second private condo creation for Park Place Residences in the same district as Park. In 2015, the 99-year rent initiative was launched; over 70% of the units were sold. In April, about $1,380 psf averaged 60 units were sold.
Former Liang Court at Canninghill Square
Located at 177 River Valley Road at the former Liang Court, Canning Hill Square integrated development will have hotel services, service apartments, commercial shops and residential condominiums.
When Canninghill Square is complete, it possesses commercial and residential elements and 192 hotel units are managed by Ascott Reit. CDLHT operates a hotel with 460 to 470 spaces with a potential sales arrangement with CDL. The property is operated by Marriott international, and the apartments are Somerset.
Three major developers behind Canninghill Square are CapitaLand, CDL, and Ascott Reit. At 50:5, the hotels in CapitaLand and in CDL share residential and industrial apartments, while Ascott Reit is entitled to control the apartment serviced.
There are a variety of shopping and dining opportunities for the residents of River Valley. The nearby restaurants can be visited in addition to the upcoming Canninghill Square hotel. The residents of Great World City and the popular shopping belt on Orchard Road with its numerous shopping centers are within walking distance of Canninghill Square integrated development.
Conclusion
Singapore Government’s objective is to provide 80 percent of households with connections to an MRT station within 10 minutes by 2030. The premium for an integrated development over other private condos in the region may depend on how similar the others to MRT and integrated development facilities are, says Savills’ Cheong.
Integrated projects in the suburbs and the periphery would be far more valuable and desirable in the longer term than in the core city. “Those who live further from the city will put greater emphasis on an integrated development as it will save them travel time,” she says.
As an investment property, we would like to invest in a smaller quantum project if the valuation opportunity is close. Pure housing developments can often deliver the same value-for-money opportunity, if not better than an integrated project. Therefore, it will help us identify undervalued or high-potential ventures instead of blindly participating in projects like complex technologies that certainly will cost us more.
Most developments finally perform well regardless of whether they are integrated or suburban. Because of the convenience that they bring, integrated developments attact far greater interest on the market, whether for sale or rental yield. It is then up to the customer to determine if the comfort exceeds the premium charged for integrated production.
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