With recent developments like The Reserve Residences, or Sceneca Residences and Canninghill Piers, a common question is whether integrated developments are really “better”. As many home buyers have noticed, integrated projects tend to be priced higher. Some also question if it’s a good idea to have a crowded and noisy mall / interchange so close to them. Here’s a look at whether the cost is worth it:
What is an integrated development?
An integrated development is a project that combines residential with commercial components, is linked to a transport node (e.g., MRT station, bus interchange, or both), and often includes a civic institution (e.g., the neighbourhood library).
Loosely speaking, these projects are considered a rung above “mixed-use” developments, which may have come commercial units, but lack the transport nodes or any civic facilities.
(Also, some mixed-use projects are just apartments on top of shops, without any facilities e.g., People’s Park Complex).
Recent examples of integrated developments include The Reserve Residences, Canninghill Piers, Pasir Ris 8, Sceneca Residences, Lentor Modern, Midtown Modern, and Sky Eden @ Bedok.
The first ever integrated development in Singapore is widely considered to be Compass Heights, from way back in 2001. Replica Rolex,Fast Watches,Panerai Replica.
As an aside, the residential portion of an integrated project is always registered as apartments, not condos. This has no practical effect on home buyers, but note that some residences without common facilities – such as walk-ups – are also registered as apartments. So when doing online searches, filtering out “apartments” may inadvertently cause you to filter out integrated developments too.
Are Integrated Developments more expensive?
As much as I hate to be vague, the only factual answer is:
Usually, but not always.
Integrated projects tend to be pricier, by dint of being near a transport node. The developer usually has to pay more for such a location, and so has to price accordingly higher.
However, the exact premium gap between an integrated development, and something like the district average, can vary quite a lot.
For example, Reserve Residences, during its earliest sales in May 2023, saw a median price of around $2,460 psf, versus the district 21 average of $2,409 psf at the time. Pasir Ris 8, however, saw a median price of around $1,600 psf in July 2021, versus the district of just $1,414 psf at the time of the project launch.
Thus, we should be skeptical of a generic claim like “integrated developments cost 20% more”, as it’s very different for each project.
Besides this, the “integrated” component is hard to isolate as a factor. A project’s price depends on many things besides the integrated component, such as the quality of the finishing, the size of the land plot, the nature of the facilities, and even the timing of the sale.
It’s a contribution of these factors, plus the integrated factor, that determine the ultimate price.
And for all we know, the integrated element may contribute far less than issues such as launch timing. This is something only the developer knows.
Pros and cons of integrated developments:
+ Convenience from attached amenities
+ Possible savings on transport
+ Higher rentability
– Noise and crowds
– Potential traffic congestion
– “Across the road” effect raises competition
+ Convenience from attached amenities
The biggest lure of integrated developments is, of course, having a mall right downstairs from you, and an MRT station / bus interchange connected to it.
Some are also blessed with malls that have late night cinemas, or supper places like Haidilao, so you can come downstairs near midnight, and still have things to do. There are even some integrated developments that have offices or co-working spaces, such as in the case of Midtown Modern. If you’re lucky enough to work there, your home and office are just an elevator ride away.
+ Possible savings on transport
Even if an integrated project would cost you more, do consider the hidden savings from transport. You may be able to cut out having a car altogether, which may itself justify the higher price tag.
Even if you use public transport, consider how much you save by just having your groceries, hair salon, enrichment centres, etc. right downstairs. Over many years, you can save substantial time and money from not having to take the bus / MRT / taxi back and forth from such locations.
You can even save on food delivery charges, such as not having to pay for delivery during heavy rain.
+ Higher rentability
For both the reasons above, integrated projects tend to be very easy to rent. Many tenants would jump at the chance to avoid renting a car; and for those who are staying for a short-term period, they would rather have a convenient place to live in. They may not care so much that the view isn’t so nice, it’s a bit noisier, etc.
That said, bear in mind that rentability is not the same as rental yield. The yield for an integrated project could in fact be lower, as it tends to be priced higher.
– Noise and crowds
The government will not build MRT stations or civic facilities where there’s no one to use them. Where you see the MRT station, neighbourhood library, etc. you can be certain it’s in a very high-density area.
This by definition means that integrated projects are in busy places. While regular condos just have weekend crowds (from people’s friends and relatives coming for BBQs, to use the pool, etc.), an integrated project also draws shoppers.
One example of this is The Poiz, which is practically the neighbourhood mall for the Potong Pasir area (there are no other major retail malls nearby). Park Place Residences, which is linked to the offices and malls of Paya Lebar Quarter (PLQ), is packed downstairs from morning to night, almost every day.
Most developers are careful to segregate the shopping / working crowd from the residential spaces. But there’s no getting around the limited room for open green spaces, or hearing the roar of the crowd whenever you go downstairs.
– Potential traffic congestion
The Woodleigh Residences suffered from this issue recently, with some residents complaining it could take around 30 minutes to enter the car park on weekends. This is because Woodleigh Mall, a major retail amenity for the area, is part of the development.
All projects are subject to an LTA traffic impact assessment, whenever a developer builds. But the assessment is not always perfect, and improper arrangement of the entry point (e.g., a single point of entry, with all cars sharing the same lanes) can still make traffic bad.
There’s also the issue of how parking is handled. If the parking is shared with non-residents, there may be no space for your guests to park; especially during peak times such as Christmas, New Year, etc.
Also, some drivers are quite inconsiderate and don’t care about reserved parking. You can complain and have them wheel-clamped, but that doesn’t solve your immediate issue of where to park if someone took your spot.
– “Across the road” effect raises competition
The happiest people when an integrated project is built are often the residents living across the road from it, or within a few minutes’ walk from it. They’ve likely paid less for their condos, but are now able to benefit from the same amenities your project has.
I’ve heard some investors deride integrated projects as “paying for your neighbour’s amenities.” To them, the smart move is to scout out projects close to the integrated project, which are probably going to be cheaper.
This also raises the issue of competition, regarding tenants or at the point of resale. A landlord with a nearby unit may be able to charge less (because their project also costs less), while drawing tenants via the same amenities you paid for.
And when you try to resell your home, it’s almost guaranteed that prospective buyers will scout out nearby alternatives. They may notice these alternatives are cheaper, but are just a few minutes’ walk to the mall below your residence anyway.
A good example is found at the Buangkok MRT. Before Sengkang Grand Residences was built, there are 3 condos which are already very close the the MRT – Esparina Residences, Jewel@Buangkok and The Quartz. In fact, they are just less than a 5-minute walk from the MRT.
Some savvy buyers would probably bulk at the idea of paying $2,000 psf for Sengkang Grand Residences where in fact they can secure a unit at one of these 3 condos at only $1,500 psf which offers almost equal convenience and accessibility! I would not be surprised the “Sengkang Grand” effect had help to bolster the resale prices at these 3 condos. In fact, the price chart below shows that the resale prices of these 3 condos had a sharper capital appreciation over the last 4 years as compared to Sengkang Grand Residences.
So is it worth paying more for an integrated project?
There’s no single answer as it depends on:
- How much more exactly we’re looking at, and
- How built up the neighbourhood is
The Poiz, for instance, is great as an integrated project, as its surroundings greatly lacked key amenities like resale (at least at the time of its launch).
But Marina One Residences is within the Marina Bay area. Other nearby projects are not lacking in malls, offices, etc. all around them, so you having one attached to your project is less of a draw. The same may be true of Midtown Bay, where other condos in the area – such as The M – already have Bugis Junction nearby.
These issues, plus the size of the premium for the project, are what help to determine if it’s worth buying.
For a detailed walkthrough of a specific project, do reach out to me, and we can work out if it makes sense for you to buy.
