What is one-north and why it was planned

Since the 1990s, Singapore’s economic growth was shifted towards high value chain industries that rely on a high-skilled workforce. Structural reforms were made to promote innovation, enterprise and entrepreneurship. The Biomedical as well as Information and Communications Technology (ICT) industries were among the new key economic drivers that the Singapore government is pursuing. Investments were made to attract world-class research talents and infrastructure development. In addition, more emphasis was placed on creating an environment that allows for start-ups to grow and thrive.

Hence, in the 2000s, JTC Corporation (JTC) was tasked to undertake the development of one-north as Singapore’s research and development (R&D) and high technology cluster. One-north was envisioned to have eight distinct precincts, each playing a unique role, forming a hub for the respective industry clusters.

Unlike other business parks that are specialised for a single manufacturing industry, one-north supports a dynamic ecosystem. This helps foster better collaboration, which is key for firms in the research and knowledge sectors.

Over the last 20 years, Singapore government has consistently invested about 1% of GDP annually in R&D – an investment proven to have borne fruit. Over two decades ago, Singapore’s biotech ecosystem was led by the construction of Biopolis, which has successfully served as a platform for biotech talent to gather and share knowledge.

 

In the 2010s, emphasis was placed on the work-live-play concept. Wessex Estate, for instance, offers homes that are tenanted to staff working nearby, including the iconic conserved black-and-white bungalows. As one-north’s workforce grew, co-living spaces, serviced apartments, hotels and condominiums were introduced into other precincts to facilitate community bonding. With further development, the ‘learn’ component was added, with the addition of INSEAD Asia Campus in Ayer Rajah, ESSEC business school and Unilever’s training centre in Nepal Hill.

Currently, as a prominent research hub and a business centre for over 400 leading companies and 800 start-ups with 50,000 knowledge workers employed, one-north has attracted upwards of $8 billion worth of investments.

As a hub for high technology, innovation and a thriving startup ecosystem, it is little wonder why one-north has drawn comparisons with Silicon Valley, the world’s leading innovation hub that draws significant venture capital investments.

Biomedical, sciences and research

Biopolis, the first cluster developed in one-north, primarily supports biomedical R&D. Dedicated to promoting collaborations between private and public scientific communities, it houses research institutes with labs for pharmaceutical and biotechnological companies.

The development also includes spaces catered to private institutes with specialised capabilities, such as those focusing on neuroscience, immunology, and pre-clinical trials. Wilmar International has since chose to locate their global headquarters in Biopolis, while Procter & Gamble Singapore also opened its $250 million innovation centre in 2014.

Most recently, in December 2023, Biopolis Phase 6 (Named Elementum) was completed. This biomedical science building adds a 12-storey development catering to the demand for semi- or fully furnished laboratories, along with integrated community areas. As such, smaller firms supporting these Multi-national Corporations in the upstream and downstream supply chain can establish themselves there for better synergy.

In addition, firms in the ICT, physical sciences and engineering industry are housed mainly in Fusionopolis. Mainly serving as a R&D hub, there are various organisations, high-tech companies and government agencies housed there. Examples include Linden Research, the makers of the 3D virtual online world, Thales Technology Centre, A*Star and the Info-communications Media Development Authority (IMDA). Razer SEA has also set up their headquarters there.

Tech, sciences, media and start-ups

Mediapolis plays a vital role in Singapore’s infocomm and media ecosystem. It houses studios including those in Mediacorp Campus and Infinite Studios, a 1.2-hectare soundstage facility. It also includes ALICE@Mediapolis, a privately-developed, green and smart multi-tenanted business park and office space for start-ups and as a base for established media firms.

Grab also opened its 9-storey headquarters located across Mediapolis. With an area of more than 42,000 square metres, the new Grab HQ houses approximately 3,000 employees, an R&D centre, and the first GrabMerchant centre.

The neighbouring precincts, Launchpad and Ayer Rajah are home to start-ups, incubators and firms specialising in emerging industries. LaunchPad, also known as the cradle of Singapore’s blossoming start-up scene, allows for the test-bedding of ideas. Clustering similar firms together creates a synergistic effect, allowing like-minded budding entrepreneurs to thrive within their own eco-system. With a vibrant economy of diverse startups, incubators, venture capitalists and ecosystem partners, they can scale-up their business more easily. Some firms that have benefited from this and grown significantly are Carousell, 99 Group, Shopback and IglooHome.

 

Amenities and Institutes of Higher Learning

Within the one-north precinct, there are two MRT stations – Buona Vista and one-north. There are also amenities near both MRT stations, Biopolis, Media Circle and Rochester Park to cater to residents’ needs.

The National University of Singapore (NUS) and Singapore Polytechnic are in the vicinity of one-north. With an emphasis placed on knowledge-sharing and collaboration, firms, especially those doing research and these tertiary institutions can foster industrial-academia collaboration.

Singapore Science Park

Lying within the greater one-north community is the Singapore Science Park. Home to over 350 multinationals, companies, and laboratories, it is amongst Asia’s most prestigious addresses for biomedical, R&D and technology development. Its close proximity to key research and tertiary institutions and Singapore’s technology start-up community caters to the needs of companies such as Defence Science Organisation National Laboratories, TÜV SÜD PSB, AT&T, Institute of Microelectronics and Crimson Logic.

The Singapore Science Park is also currently undergoing rejuvenation, transforming it from a business park into a work-live-play precinct. Most recently, the first phase of Geneo was completed in December 2023 and Citadines Science Park Singapore has begun operations in February 2024. When Geneo is fully completed in 2025, the total working population in SSP is expected to reach about 21,000, up from 12,000 currently.

While there was much fanfare around one-north and the Singapore Science Park development, companies there struggled to attract talent, largely due to an underdeveloped transport network and a shortage of nearby housing.

Private Homes in one-north

Currently, there are only five condominiums in the entirety of one-north, with two of them being new launches – Blossoms By The Park (275 units, launched 2023) and The Hill @ One-North (142 units, launched 2024).

One-North Residences (405 units) and The Rochester Residences (366 units) were both launched in 2007, while One-North Eden (165 units) was launched in 2021. Buyers would have all made significant gains, in line with one-north’s development on a precinct level. Based on median price psf of all transactions, One-North Residences price growth was the most significant, rising 72.1% since launch. More recently, property prices at one-north Eden have grown 29.3% since its launch in 2021.

Chart 1: Price performance of condos in one-north

Source: URA as of 24 Feb 2025, ERA Research and Market Intelligence

 

More New homes to be added to support the workforce

One-north has been primarily seen as a workplace, housing local and foreign firms With just five condominiums in the precinct, the Urban and Redevelopment Authority (URA) realised the need to inject more housing. A larger stay-in population that can support the workforce will help spruce up the estate, creating a vibrant work-live-play-learn environment. The area will also be connected by cycling paths and covered walkways/linkways to improve first-mile connectivity.

Having more housing units in one-north will also cater to the large tenant pool of lecturers, researchers, foreign students and expats working in the firms there. This can provide a steady stream of rental income.

The next area for residential development in one-north will be in Media Circle, a part of Mediapolis. Thus far, URA has released three non-landed residential sites in there. One has been awarded (now Bloomsbury Residences), and other two are open for tender. In total, these three future developments will yield up to 1,185 units. Thereafter, depending on the demand, there could be more sites being sold. They could potentially be mixed-used developments.

 

Making sense of the recent land bids trend in Media Circle

The site at Media Circle (Parcel A) recently closed with three bids, with the highest coming from a joint venture between QingJian Realty, Forsea, and Hoovasun. The winning bid of $1,037 psf ppr is about 13% lower than the $1,191 psf ppr they secured for a site last year. It was a good defensive move and buffered in headroom for more options to respond to any changes in market conditions in the future Another reason for the lower bid is that, unlike Bloomsbury Residences, the commercial component of Media Circle (Parcel A) will be part of the development’s common area and will eventually fall under the care of the MCST. Nonetheless, the lower land price may not translate to lower selling price as considering higher-for-longer interest rates and and rising construction cost.
Furthermore, having both sites developed simultaneously by the same developers will allow for better alignment of design intentions with the surroundings, resulting in a more seamless and cohesive integration.

In conclusion

New residential developments being injected into the precinct will further add to the rejuvenation. It could transform Media Circle into a vibrant mixed-use district. A larger live-in population would mean that the transport infrastructure will also be upgraded to cater to the residents there. We could see more feeder buses that comes frequently to take residents to amenities and the MRT stations.

Moving forward, it was announced during Budget 2025 that the government will refresh the public biosciences and med-tech research infrastructure in the greater one-north area. This will mean more investments to provide state-of-the-art facilities, promote collaboration within Singapore’s research community, and enable faster translation of research into commercial solutions. These investment commitments will ensure that one-north and Science Park will continue to develop into a thriving work-live-play-learn business park anchored by large high-tech firms.

Expanding the residential offerings in one-north will accommodate the growing workforce. This provides an opportunity to investors to acquire a home here to capitalise on potential future growth, and the large tenant pool for passive rental income.

Interested to know more about what the estate offer to prospective homeowners and tenants? Speak to any ERA Trusted Advisor today to find out more!

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Are Executive Condominiums (ECs) still an affordable option for home buyers today? They may not be since as explained in our last EC article,  buyers are constrained by the amount of loan which they can take up for their EC purchase. This is largely due to the income cap, stringent Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio. Even with a monthly income of $16,000, buyers may qualify for a loan of up to $1 million, requiring them to cover the excess EC cost with cash and/or CPF. Amid rising EC prices, and a cap in loan quantum, EC buyers will now have to shell out a larger cash outlay.

Despite so, many Singaporeans continue to gravitate towards ECs as they are perceived to be more value-for-money compared to private condos. In 2024, the median transaction price of a new Outside Central Region (OCR) condominium unit (900–1,000 sqft) was 42% higher than that of a similar executive condominium (EC) unit. Even at the lower price point, residents can enjoy similar lifestyle with security and full-fledged facilities such as swimming pools, gyms and function rooms.

Table 1: Price comparison between a new EC and OCR condo (900 – 1,000sqft) in 2024

Moreover, the lower purchase price will also translate to a smaller loan quantum, which in turn reduces interest costs. Eligible First-timer buyers may also receive up to $30,000 in grants to offset their down payment.

Impressive Sales Performances In Recent EC Launches

Lumina Grand, sold 53% of its units at an average price of $1,464 psf during its launch weekend. Similarly, Novo Place sold 57% of its 504 units at an average price of $1,654 psf at its launch in Nov-2024. When it opened for the second round of balloting for second timer buyers, Novo Place moved another 137 units, bringing it total sale to 88%.

Based on URA caveats, there were a total of 1,185 new EC transactions in 2024. With a limited number of EC launches each year, buyers turn to remaining EC supply. As of end-Jan 2025, the market saw the balance EC supply fall to merely 138 units.

What makes ECs so Attractive?

Despite the higher upfront costs, buyers are not deterred mainly for two reasons. The lower price aside, EC buyers do not need to dispose their existing home before their EC purchase. HDB upgraders do not incur the Additional Buyers’ Stamp Duty (ABSD) when buying a new EC.

Moreover, EC buyers may opt for the Deferred Payment Scheme (DPS) at a cost, where they only need to pay a deposit and deferred their loan till after the EC has been completed. In this way, the buyers will not need to service two mortgages while waiting for the new home.

With no ABSD payable and the availability of the DPS, HDB owners find it easier to upgrade to new ECs.

Why are ECs Becoming Increasingly Expensive?

Firstly, like other property developments, construction and labour costs have been rising. This problem was exacerbated by the Covid-19 pandemic, with tighter supply for goods worldwide. Higher inflation rate has added to developers’ cost. Construction firms also have to compete for a tighter pool of workers with more public (such as the Cross-Island Line and HDB Build-to-Order flats) and private sector construction projects.

Secondly, land costs have also risen, with the continued strong demand for new ECs.

With the continued strong demand for new ECs, Developers were seen bidding more aggressively for EC sites. Between 2015 and 2024, the average EC land costs have risen 164%, from $287 psf ppr to $733 psf ppr. To illustrate a more recent example, the Tengah Garden Walk EC site, subsequently launched as Copen Grand, was awarded to a joint venture between City Development Group and MCL Land, at $603 per square foot per plot ratio (psr ppr) in 2021.

In Feb-2024, another EC site at Plantation Close was awarded to Hoi Hup Realty Pte Ltd and Sunway Developments Pte. Ltd. for $701 psf ppr, which works out to 16% higher than the Copen Grand site.

Chart 1: Land cost of ECs since 2015

Thirdly, the harmonisation rule which took effect from 1 June 2023 means, developers are no longer allowed to sell non strata areas (e.g. void spaces and air-con ledges). As a result, developers have adjusted their selling price to account for the reduced sellable area, consequentially lead to a higher psf pricing.

Table 2: Existing launched ECs in the market

However, fret not about  the few remaining stock in the market, or the lack of new EC launches in the East. In 2025, there are three EC slated for launch with two in the East and one in the West.

Here are the EC Launches in 2025:

Aurelle of Tampines

Estimated launch: Preview in Feb 2025

Planning Region/Area: East/Tampines

Distance to Nearest MRT Station: 5-min walk to the upcoming Tampines North MRT Station

Number of Units: 760

Developer: Sim Lian Land Pte Ltd and Sim Lian Development Pte Ltd

The first EC launch of 2025, Aurelle of Tampines will be highly anticipated. This is the first EC launch in Tampines since Tenet. Neighbouring Aurelle of Tampines, Tenet sold 72% of its 618 units at its launch in December 2022.

People living in the east will be drawn to Aurelle of Tampines, notwithstanding that Tampines is a well-established town with amenities. By the time buyers can collect their keys, there will be four shopping malls and two community hubs in Tampines. The transport infrastructure is also comprehensive. Internally, it is served by various feeder bus services and will have four MRT stations.

Tampines is also a regional centre and has two industrial estates within, while being near to other commercial nodes nearby at Changi Business Park, Changi Aviation Park and Changi Airport.

Located in the core of Tampines North, a new estate within Tampines, Aurelle of Tampines will be within a 5-minute walk from the upcoming Tampines North Integrated Transport Hub. There will be seamless connection between the MRT station, the air-conditioned bus interchange, a community club, a hawker centre, and a new mall (Parktown Tampines).

Tampines North MRT Station, on the upcoming Cross-Island Line, is one, three and six stops from Pasir Ris, Hougang and Ang Mo Kio Interchange respectively. This gives owners easy access to other parts of Singapore.

Plantation Close GLS

Estimated launch: 2Q 2025

Planning Region/Area: West/Tengah

Distance to Nearest MRT Station: 7-min walk to upcoming Tengah Park MRT Station

Number of Units: est. 560

Developer: Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd

Located in Tengah, an up-and-coming estate designed for smart, sustainable living, Plantation Close EC residents will enjoy ample recreational and green spaces in their neighbourhood.

The upcoming EC site sits beside Novo Place EC, a short walk from the future Tengah Park MRT. Residents will have easy access to Jurong Lake Gardens, the Innovation District, and Nanyang Technological University via the Jurong Regional Line. Drivers benefit from direct access to the Pan-Island Expressway.

For amenities, residents can visit Plantation Plaza, a one-stop hub with a supermarket, food court, F&B outlets, enrichment centres, and service shops for residents’ everyday needs.

Given these advantages, it’s no surprise Novo Place has sold 90.9% of its units within three months of its launch. Those who missed out on their desired unit can consider this new EC, which shares the same developer.

However, while offering similar features, this EC is slightly farther from Tengah Park MRT and sits next to the PIE.

Jalan Loyang Besar GLS

Estimated launch: 4Q 2025

Planning Region/Area: East/Pasir Ris

Distance to Nearest MRT Station: 3 bus stops to Pasir Ris MRT Station

Number of Units: est. 710

Developer: CNQC Realty (Progressive) Pte Ltd, Forsea Residence Pte Ltd, and ZACD Laserblue Pte Ltd

Jalan Loyang Besar EC, located in Pasir Ris, offers unmatched convenience just opposite Downtown East, Pasir Ris Park, the beach, and several schools. With E!Hub @ Downtown East across the road, families have easy access to enrichment centres, play areas, preschools, and childcare services. The mall also features two supermarkets, eateries, and a cinema. Pasir Ris Sports Centre and Hawker Centre are just 700m away.

For connectivity, the EC is two bus stops or a 1km walk to Pasir Ris MRT interchange, linking the East-West and upcoming Cross-Island Lines.

Families with school-going children benefit from two primary schools within 1km—Casuarina and Pasir Ris Primary—plus four secondary schools, a junior college, and an international school nearby.

With no EC launches in Pasir Ris since 2013, pent-up demand from east-side residents is likely.

Have any of these new ECs piqued your interest? If so, speak to an ERA Trusted Adviser today.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

What do Sengkang Grand Mall, Jurong Point and Pasir Ris Mall have in common? They are shopping malls that are part of an integrated transport hub (ITH). The Land Transport Authority (LTA) introduced these hubs, where bus interchanges seamlessly link to MRT stations and adjoining commercial developments such as shopping malls.

Urban planners in land scarce Singapore lack the privilege to create an urban sprawl to support all our spatial needs. Hence, they have to look into creative ways to optimise land use. One way is to co-locate various complementary uses into the same development.

An example would be where homes, amenities and even transport nodes are all under the same roof, a win-win for township planning. While urban planners get to create better land-use efficiently, residents also benefit from the convenience and retailers enjoy higher footfall. It also allows commuters to access the adjoining development to conveniently run errands and shop comfortably, before transferring to their connecting buses or trains.

 

Taking convenience one step further, real estate developers and urban planners have now integrated all three uses- residential, commercial and transport hubs into the same development. Colloquially, known as integrated development, condominium residents have seamless and direct connectivity to the ITH.

More recently, the land tender may also stipulate developers to incorporate public civic or community spaces such as libraries, community clubs, and a hawker centres into the integrated development. This would serve not only the condominium’s residents, but others living in the vicinity.

Unmatched convenience for residents

So, what kind of lifestyle can residents of integrated developments expect? For one, they get unmatched convenience. The mall will cater to residents’ everyday needs, while travelling to other parts of Singapore is also made easy.

What if you fall sick or got a toothache? Or ran out of ingredients? Or forgot to takeaway dinner? Or have a sudden bubble tea craving? The clinics, dentists, supermarket, and eateries are all in the same building.

Children can attend their classes (e.g. enrichment/music/art etc) while the elderly who may be less mobile need not walk a distance to socialise or run their errands. This is especially so if the integrated development includes a community centre where there are activities for them, or hawker centres for them to chit-chat and have their meals. Rain or shine, all your everyday needs can be settled by just taking the lift.

Malls that are part of integrated developments tend to be larger and better managed. They are usually managed by the developer themselves or sold collective to another investor (e.g. REIT/fund). Proper mall management ensures a proper tenant mix and creates variety through placemaking activities. With a curated tenant mix, the needs of residents are better catered to.

And if the mall does not have what you are looking for, you can always take a bus or MRT to somewhere else, all within air-condition comfort.

 

A “limited edition” product

Currently, there are only nine integrated developments – six completed, two under construction and one more in Tampines North that is set to be launched in 1Q 2025. While the LTA has earmarked a further seven ITHs for the future, Hougang is the only site has been confirmed as an integrated development (includes a condominium).

Across the nine integrated developments, there are a total of only 6,296 units.  Based on the island-wide stock of 341,131 private residential units, this means that just 1.8% of all non-landed private residential units are in integrated developments (as of 3Q 2024).

 

Table 1: List ITHs and Integrated Developments

Source: URA and ERApro as of 06 Jan 2025, ERA Research and Market Intelligence

 

Profitability

Exploring integrated developments completed in the last five years (since 2019), buyers of both developments – Pasir Ris 8 and Sengkang Grand Residences have all seen profitable transactions.

They have all also outperformed their counterparts from the same area. Based on their median price per square foot (psf), Pasir Ris 8’s grew 12.4%, higher than the 9.3% for the entire Pasir Ris Planning area. Similarly, Sengkang Grand Residences’ price grew by 18.1%, higher than the 17.2% recorded in Sengkang.

Chart 1: Price performance of Integrated Developments Completed since 2019

Source: URA as of 18 Dec 2024, ERA Research and Market Intelligence; *Includes 99-Leasehold condos only

Table 2: Profitability of Integrated Developments launched since 2019

 

Source: URA as of 18 Dec 2024, ERA Research and Market Intelligence

With Singapore’s public transport network becoming increasingly comprehensive, coupled with the higher costs of car ownership, living near an MRT station is becoming increasingly important for home buyers. Moreover, given the low supply of new integrated developments, seeing such significant price growth is unsurprising. Hence, while integrated developments might come with a price premium, they also result in higher returns.

High rental and strong rentability

As expected, the strong locational attributes of integrated developments make them highly sought after by tenants. For developments that are less than ten years old, these properties consistently command significantly higher premiums compared to their counterparts in the same area. Being close to the town centre, transport nodes, and amenities, their rents are typically higher.

Therefore, Compass Heights and The Centris have rents lower than the median rent psf of their respective planning areas. However, this can be attributed to the age of these developments. Tenants may prefer to pay more rent for newer developments, as the living conditions and environment are better. Moreover, older developments are generally larger in size, which usually results in a lower rent on a psf basis.

For example, in 2024, 71.4% of units rented out at Compass Heights were 1,000 sqft or larger. In contrast, larger units accounted for only 20.9% of tenanted units in the Sengkang area. Thus, being just the second condominium to be developed in Sengkang, Compass Heights commands a much lower rent psf compared to newer condominiums.

 

Table 3: Rental Comparison of Integrated Developments in the area

Source: URA as of 18 December 2024, ERA Research and Market Intelligence

Why should you not stay in an integrated development?

While there are many perks to living in integrated developments, it may still not be for everyone.

The hustle and bustle may not be everyone’s cup of tea

If you prioritise a serene and tranquil environment, away from the hustle and bustle, the additional crowd and noise from MRT users, and shoppers. Moreover, residents may also face issues if there is no segregation of carpark entry and spaces.

More encumbrances for future enbloc sales

Furthermore, investors may not be able to enjoy the windfall of a collective sale in future. The complexities involved in redeveloping a development linked to a public transport node may not make it financially viable for developers.

That being said, there are still plenty of perks of living or investing in an integrated development. If crowds are not a deterrence, you should definitely consider one. With Parktown Residence scheduled for launch in 1Q 2025, a rare opportunity has been presented. The 1,193-unit condominium will be part of the Tampines North ITH, in addition to a new retail mall PARKTOWN Tampines, a community club, and a hawker centre.

Interested to know more about the upcoming integrated developments? Speak to an ERA Trusted Adviser today.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Singapore’s Central Area was actually one of the first few areas where homes were introduced. In the 1970s, HDB mixed-use developments such as Tanjong Pagar Plaza, Bras Basah Complex and People’s Park (Chinatown). Later, more HDBs were added including those at Everton Park and most recently, Pinnacle@Duxton (completed in 2009). These places were highly sought after due to their central locations, and had amenities to serve the residents’ needs.

However, over the past two decades, Singapore’s Central Business District (CBD) has evolved from a primarily office-focused area into a more livable space. Initially, it was home to large offices, the CBD was only alive between 9 to 6 on weekdays.

Recently, the CBD has seen a shift toward residential and mixed-use developments. The Urban Redevelopment Authority (URA), through its 2014 and 2019 Masterplans and the 2019 CBD Incentive Scheme, has introduced more parks, community spaces, and homes. Developers are encouraged to convert older office buildings to mixed-use developments to inject a larger live-in population. This initiative aims to build a larger residential population and diversify amenities in the CBD, offering developers bonus gross floor area as an incentive.

“We can make our CBD not just a place to work, but also an attractive and vibrant place to live and play.” – Lawrence Wong, 2019

Today, our CBD is a much more vibrant space, offering a day-to-night environment. It continues to attract weekend crowds for various reasons—for food, exercise, or shops featuring curated activities and workshops. The wider streets are pedestrian-friendly, lined with cafes, al-fresco dining options, and convenience stores, some with adjacent cycling paths and park connectors. Public squares and gardens contribute to placemaking efforts and foster more interactions.

Nightlife culture is also thriving in the CBD, with bars and restaurants catering to the working crowd and weekend revellers. The foreign tenants and short-term travellers seeking accommodations in these centrally located areas adds to the vibrancy, offering a unique atmosphere and experience.

“You can’t be more centrally located than being located in the centre”

Location is the keyword when one talks about real estate. Usually, properties located near city centres are the most valuable, because it comes with amenities and activities.

Therefore, Build-To-Order (BTO) HDB flats in these prime locations in and around the CBD are over-subscribed. Resale flats in the Central Area still sees high demand despite shorter remaining leases (less than 60 years). This is a testament that Singaporeans desire to live in the CBD.

Why so? Because for those working in or around the CBD, living there makes the most sense. Residents enjoy the quick commutes, saving valuable time. Wouldn’t you want to live within walking distance of your workplace? Some buildings in the CBD even offer bicycle parking and end-of-trip facilities.

Additionally, residing in the heart of Singapore makes it easier to access other parts of the island. The CBD boasts 13 MRT stations across all six lines, providing excellent connectivity to virtually anywhere.

“People talk about wanting amenities – downtown is the amenity.”

Imagine this: after a long day of work in Tanjong Pagar, you take a short 10-minute walk home and stop by a supermarket for a quick grocery run before picking up your child from preschool. On the way home, you decide between a bike ride to Gardens by the Bay, a boxing class at the gym across the road, or unwinding at one of the bars beneath your condo. On remote workdays, you visit your regular coffee joint for a quick breakfast followed by a couple of productive hours there. Do you see yourself having this lifestyle?

Beyond the convenience from the location, residents of the CBD actually enjoy the lifestyle of having everything around you. From food options to amenities to green spaces, places of worship and leisure spots, most things can be found within walking distance away.

While remote work may make it seem like city living is no longer relevant, hybrid employees may find it more productive to work in third places in CBDs such as cafes and coworking spaces.

Amenities

Many believe the CBD lacks amenities for residents, but on the contrary, it offers a wide range of options. Fitness enthusiasts have access to numerous gyms, including specialized ones for climbing, martial arts, yoga, and even quick 30-minute lunchtime workouts. For those seeking a break from the urban environment, parks like Pearl’s Hill City Park, Fort Canning Park, and Gardens by the Bay provide nearby green spaces for jogging or cycling after work.

Everyday needs are well-served by malls such as Icon Village, 100 AM, Tanjong Pagar Plaza, and Chinatown Point, offering supermarkets, clinics, pharmacies, and personal care services. Families with young children benefit from the many childcare centers and preschools in areas like Tanjong Pagar, Telok Ayer, Clarke Quay, and Marina Bay.

Newer CBD developments also feature public spaces designed for community activities. Examples include Guoco Tower’s Urban Park, Capitaspring’s sky garden, and IOI Central Boulevard Towers’ Central Green garden that enhances livability.

 

Aplenty of Food Options

In the past, food places in the CBD are only open till lunch time on weekdays. Today, you find that they are widely available, catering to every budget and occasion. Whether you are just looking for daily sustenance, a leisurely weekend brunch or want to have a nice meal out for a celebration, there is something for everyone. A common misconception is that food is costly in the CBD. While that holds true for some of the classiest restaurants or hip and trendy bars, there are actually eight NEA-run hawker centres inS the CBD. They provide affordable food and drink options.

Moreover, regardless of what cuisine you are looking for, you can probably find it there. Coffee houses and bars are also scattered around and are widely available.

While city living offers plenty, it may not be for everyone

With all these desirable attributes, does living in the city still make sense for everyone? Definitely not. It still lacks schools for families with school-going children. Cantonment Primary School is the only one in the CBD, along with few enrichment centres.

Furthermore, those working in the CBD may not necessarily want to live there. It can be difficult to disconnect from work during time off. Some may be put off by the weekday crowds, with too much ‘buzz’ and ‘commotion’ around. Others might find the demographics and community in the CBD unsuitable, as it is largely made up of expats, tenants, and leisure travellers. As a result, residents may not feel as connected, and the community may not be as close-knit.

City living also comes with higher cost of living. With higher rents in the city centre, food and services are likely to cost more compared to suburban areas.

While CBD living caters to many, there is still a lack of stock in the market. Currently, there are only 12,957 private residential units in the CBD. This amounts to just 3.8% of all homes island-wide, or just slightly above the entire District 20 (Ang Mo Kio, Bishan, Thomson). The lack of homes could be turning aspiring CBD homeowners away as they seek to find their dream home.

Shifting the focus (and homes) back to the city centre

Over the years, the success of URA’s decentralisation strategy coupled with the improved public transport network and more comprehensive amenities, have driven people to stay further outskirt.

Singaporeans are also hesitant to live in the CBD with the lack of housing options that has driven home prices higher. However, the allure of living in city centre remains given its convenience.

More importantly, the idea of living in the CBD is not a new one. It was simply set aside as Singapore focused on developing its financial hub.  With URA’s push for to transform the CBD into a work-live-play location, more homes have been progressively been planned for the CBD and we may see more Singaporeans returning to live in the city centre in time to come.

 

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

 

Freehold land parcels were last sold prior to the introduction of GLS Programme in 1967, mostly taking place before Singapore’s independence. If all Government Land Sale (GLS) sites have a 99-year leasehold (99-LH) tenure, then why are there 999-year leasehold (999-LH) or freehold developments?

In land-scarce Singapore, selling residential land on a 99-year lease allows the government flexibility to reallocate land in the future, and to meet the evolving needs of society.

Freehold Land is a Rare Commodity

Currently, new freehold developments are available as property developers purchase freehold land via the collective sale of older projects. Such new projects are rare and remain highly sought after, as they are not subject to lease decay. This makes them an attractive option for buyers looking to purchase a property for their own stay, or as a legacy asset.

Given a quiet en-bloc market with an abundance of sites released in the 2024 GLS Confirmed List, new freehold condos are becoming increasingly scarce. Developers are unlikely to pay a sizable amount for a freehold site that comes with more encumbrances and costs (e.g. demolition), especially with the wide array of sites available under the GLS scheme. With a slow en-bloc market, particularly for freehold sites, there will be a dearth of new freehold units available in the near future. Only 603 freehold units are expected to be launched in the coming months.

 

When purchasing any property, buyers often have to face an iron triangle – a form of ‘give-and-take’ regarding the attributes of a property. In this case, the balance lies between the age of a property, its locational attributes (e.g. the availability of MRT stations), and lastly affordability. Freehold developments are often on the pricier end, which might make the ‘perfect’ freehold property more elusive to attain.

This coincides with ERA’s recently concluded My Dream Home Survey, which found that homebuyers prioritise affordability, size of the property and proximity to public transportation as key considerations for their next home purchase. Among survey participants keen on owning a private property as their next home, over 55% indicated a preference for new launches.

Where are FH condos usually located?

Freehold condos are spread across island-wide. However, there is a higher concentration of them in the city centre (e.g. Orchard, River Valley, Bukit Timah, Newton and Novena) or the city fringe (e.g. Katong, Joo Chiat, Marine Parade, Upper Bukit Timah). In line with Singapore’s urban development, these more centrally located areas were developed first, before moving outwards. Naturally, being centrally located, these developments would command higher prices.

While freehold properties are also found in suburban areas such as in Serangoon or Pasir Ris, their supply is more limited. These areas were developed much later, with land sold with leasehold tenures under the GLS programme.

Furthermore, MRT stations were also planned after the GLS Programme was introduced. Therefore, much of the land near MRT stations would have a leasehold tenure, barring those sold prior to the stations being planned.

Terra Hill, a freehold development located just 400m from Pasir Panjang MRT Station

ERA estimates approximately some 44% of non-landed homes to be of freehold or 999 leasehold status, relatively well distributed across market segments. But with the introduction of GLS program, this has helped ramped up the supply of leasehold homes, particularly in the Outside Central Region (OCR). Even though the supply of freehold units in the OCR has remained largely the same, the proportion of such homes in the region has dwindled to 28% due to the growing number of leasehold properties over time.

Table 1: Breakdown of Units by Tenure

Source: URA, ERA Research and Market Intelligence

Why do buyers prefer a new development despite the freehold tenure?

While older resale condos are typically more affordable than freehold properties in the same location, they could come with higher renovation and maintenance costs.

The older unit and development might not be well-maintained, and having outdated building designs and dreary façades could make them unappealing. Additionally, aging facilities that are under-utilized or poorly maintained due to wear and tear might be unpleasant to use or even pose safety risks.

Freehold property owners pay a premium for perpetual ownership. Unless the maintenance cost of their unit or the development becomes too high, it is unlikely that they will want to sell, whether individually or via a collective sale.

If the development’s age is a concern, or if buyers prefer a newer property, they may need to scour the market to find what they are looking for, or pay close attention to the en-bloc market. After all, freehold developments are becoming harder to come by as the years go on.

Entry Price

Are freehold properties still affordable? Despite commanding a premium, freehold properties are still alluring to many buyers as they offer perpetual ownership. Without the threat of lease decay, freehold properties also retain their value better over time.

Chart 1: Median Price psf for Freehold vs 99-Leasehold

Source: URA as of 7 Aug 2024, ERA Research and Market Intelligence, FH transactions include 999-LH

Furthermore, with the closing gap in prices between freehold and leasehold properties, prospective homebuyers may find freehold homes to be a more attractive purchase.

In the 2019, the median price gap between freehold and leasehold properties was 9.8%. As of 2H 2024, this has narrowed to 1.3%.

Table 2: Median Price psf of Freehold Condos in 1H 2024

Source: URA as of 6 Aug 2024, ERA Research and Market Intelligence

There were 2,264 freehold condominium units that changed hands in 1H 2024, with the average age and price psf of unit being 14.8 years and $1,953 psf respectively.

43.0% of these transactions were for homes between 10 to 20 years old, as buyers consider the trade-off between age and affordability. The lower psf would mean buyers have a relatively newer and larger home for the same price quantum.

Chart 2: Freehold Condominium Transactions in 1H 2024

Source: URA as of 31 Jul 2024, ERA Research and Market Intelligence, New sale project’s age based on estimated TOP date

 

Should buyers be concerned with the slower price growth of Freehold Properties?

We often see 99-LH properties outperforming freehold/999-LH property in terms of profitability. This is a result of lower frequency of transactions for freehold homes.

 

Freehold property owners are likely to be living there long term. They lack the urgency to sell them as there is no lease decay. Moreover, as the government continues to roll out 99-LH GLS sites, there are more 99-LH properties transacted which leads to more price movement. These newer developments are sold at higher prices, which leads to faster and higher price growth.

Hence, prices of freehold developments may experience more gradual growth as the proportion of transactions are comparatively lower than 99-LH developments. However, in the long term, freehold developments provide better value retention, as they are not subject to lease decay.

Conclusion

Are freehold properties right for you?

If you are willing to pay more for the freehold tenure, then you should have the intention to hold onto it for the long term. If you are looking to cash out the profits from your property after a few years (e.g. Upon new home completion or the end of the 3-year Sellers’ Stamp Duty period), then there is little difference between buying a freehold and 99-LH property.

What are my options?

There are still many opportunities in the market for new freehold developments that cater to most budgets, or locational preferences.

For value buys, you can consider Kassia in Flora Drive, with a price starting from just $1,830 psf. Those who want to be in the city fringe can consider The Arcady at Boon Keng, just a short walk from Boon Keng MRT Station. In the West Coast, Terra Hill offers a compelling proposition being nestled in a tranquil landed enclave, yet near an MRT station. The Continuum offers East-siders a mega-development, that comes with more comprehensive facilities in a popular area.

For those looking to live in a quiet and exclusive enclave can consider buying a boutique development. There are four new developments available, with three in the east and one in the west. Comparatively, they are priced lower than the larger freehold developments nearby.

Table 3: List of Available Freehold Developments

Development	Region/Area	No. of Units	Price psf from ($)	Distance to nearest MRT Station
Kassia	OCR/Pasir Ris	276	1,838	1.8km to Tampines East
The Shorefront	OCR/Pasir Ris	23	1,779	1.8km to Pasir Ris
The Arcady at Boon Keng	RCR/Boon Keng	172	2,419	500m to Boon Keng
Terra Hill	RCR/Pasir Panjang	270	2,251	400m to Pasir Panjang
The Continuum	RCR/East Coast	816	2,592	800m to Dakota
Ardor Residence	RCR/East Coast	35	2,114	1.2km to Marine Parade
Straits at Joo Chiat	RCR/East Coast	16	2,080	1km to Eunos
The Hillshore	RCR/Pasir Panjang	59	2,227	2.1km to Pasir Panjang

Source: ERApro as of 3 Sep 2024, ERA Research and Market Intelligence

 

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

In recent months, land bids for Government Land Sales (GLS) sites have fallen, with noticeably lower participation by developers. In the first five months of 2024, the average number of developers bidding for awarded sites with residential use fell to 2.4, down from 3.4 in 2H 2023 and the peak of 8.6 in 2021.  

Chart 1: Average number of bidders for GLS sites*

Land bids in recent months have been comparatively lower than those for previously sold sites that share similar locational attributes. The media has reported that some sites sold were sold at prices  “below analyst’s predictions”. Moreover, the Marina Gardens Crescent site was not awarded as the $984 per square feet per plot ratio (psf ppr) was “too low”. 

Below are some examples of recent GLS residential sites that sold for up to 32.0% less  than some neighbouring developments. 

Table 1: Recent GLS sites awarded previously and recently in similar locations

Could this change signal waning demand for GLS sites? Are developers exercising more caution? Will new launch prices finally fall?

Below, we explore the answers to these questions through the lens of 4 recent GLS sites, alongside the reasons why developers are unlikely to cut new launch prices. 

Reason #1: The floor area harmonisation rule reduces sellable floor area in a development

Applying to all residential and industrial GLS sites launched for sale from 1 September 2022 onwards, the new Floor Area Harmonisation rule will see the following changes implemented: 

• The Urban Redevelopment Authority, Singapore Land Authority, Building and Construction Authority and Singapore Civil Defence Force will measure all floor areas to the middle of the wall
• All strata areas will be included in Gross Floor Area (GFA). 
• All voids will be excluded from the strata area. 

As a result of these changes, spaces like air-con ledges and voids are no longer included as sellable spaces. But developers are unlikely to lower selling prices, even if they pay less for land. To put things into perspective, developers do incur expenses building void spaces and aircon ledges and hence they are likely to incorporate related costs into the selling price.

Table 2: Land prices for projects launched before and after the floor area harmonisation rule 

A case in point is Lentor Mansion, where units launched after the floor area harmonisation rule are priced higher per square foot than units of similar size and design at Lentor Modern. This is despite Lentor Mansion’s lower land cost of $985 psf ppr, compared to Mentor Modern’s $1,204 psf ppr (18.2% difference). 

Table 3:  Price difference for 2-bedroom units at Lentor Modern and Lentor Mansion 

Reason #2: Developers expected to undertake higher risks for some sites

Higher Additional Buyer Stamp Duty (ABSD)

Since the Cuscaden Road site was awarded in May 2018, there has been three rounds of ABSD hikes on foreign buyers, raising the original rate to a hefty 60%. With developments in the Core Central Region (CCR) typically seeing more foreign buyers, developers are becoming more conscious about waning demand. Hence, they are lowering their bids to account for the current market conditions. 

Image 1: Timeline of increases in ABSD for foreign buyers (non-Singapore permanent resident)

As demand from foreign buyers was high before July 2018, the developer of Cuscaden Reserve was more bullish in their bids. 

However, with the market now cooled, developer sentiments are substantially dampened, resulting in the top bid for the Orchard Boulevard site being 32% lower than Cuscaden Reserve’s. 

Depending on market conditions, further revisions to the ABSD rate could happen. 

Consequently, developers must factor in such regulatory risks that could affect sales of units; this might involve setting aside funds for marketing or contingency costs.

Business risks arising from a new rental housing typology

Driven by evolving demographics and rising demand for rentals amongst Singaporeans, the URA recently introduced a new class of long-stay serviced apartments (SA2) in several of their newly released GLS sites.

With a minimum stay of three months, SA2s are intended to cater to tenants in need of housing for a period lasting longer than a typical hotel stay, but shorter than the usual 1-year lease for local rentals. Potential tenants for SA2 apartments may include foreigners on extended job stints, some younger Singaporeans who may choose to rent as a start, and homeowners waiting out their home completion or renovation. 

Developers undertaking SA2 projects are required to either have hospitality expertise or to partner with parties with relevant capabilities. Furthermore, being an untested market, it may be challenging for developers to determine the demand for properties built under this new rental housing typology. 

The Zion Road (Parcel A) site is the first site to pilot the new SA2 flats. It was sold for $1 billion ($1,202 psf ppr), 30.6% lower than the site sold at Jiak Kim Street (now Rivière), which sold for $955.4 million or $1,733 psf ppr in 2018.

Nevertheless, even with the comparatively lower land cost, developers for Zion Road (Parcel A) are not expected to reduce selling prices. On the contrary, they could even factor in holding costs and possible vacancies of the SA2 units, given uncertainty about their future profitability.

Larger projects may present higher risk of unsold units

Although large residential projects offer enticing benefits like larger total revenues and potentially lower construction costs due to economies of scale, they can also be fraught with risks for developers who choose to tender for larger GLS sites. The Zion Road (Parcel A) site has a maximum GFA of 85,577 sqm, potentially yielding 735 units (excluding SA2 units). Meanwhile, the 455-unit Riviere’s GFA is only 51,231 sqm, 40.1% less. 

This heightened risk traces back to Singapore’s policy of imposing ABSD on unsold units. Under this regulation, developers who fail to sell all units within five years of acquiring a GLS site face a hefty penalty of up to 35% of the land cost. 

This need to manage risk associated with unsold stock makes developers unwilling to lower selling prices, even with lower land costs. Instead, they are more likely to maintain prices in exchange for managing common challenges associated with large projects. These challenges include longer construction runways and more rigorous project requirements. 

Reason #3: Surge in construction demand could drive construction and labour costs higher 

At present, Singapore’s construction industry is experiencing strong demand for public and private projects. The total projected contract value is between $32 billion and $34 billion in 2024, the highest since 2015. 

Chart 2: Construction demand in Singapore

Key contributors to construction demand include private sector projects from GLS site tenders and the expansion of Singapore’s two integrated resorts. Similarly, public projects like HDB Build-to-Order (BTO) flats, the Cross-Island MRT line, Changi Airport Terminal 5, and Tuas Port have also significantly contributed to this growth in demand.

This momentum is expected to continue with the Building and Construction Authority forecasting a steady rise in demand to reach between $31 billion and $38 billion per year from 2025 to 2028. This translates into an increase of between 4.7% to 28.4% on the 10-year average of $29.6 billion. 

With the increased volume of construction, competition for labour and materials has intensified. The Tender Price Index, which tracks the price movement of construction components such as materials and manpower, has grown by 32.4% between 2020 and 2023. 

Although labour pressure has eased with approximately 40% more work permits issued for the construction, marine shipyard, and process industries, skilled labour shortages could remain a significant constraint.

Other cost pressures, such as higher-for-longer interest rates, persistent inflation, higher Goods & Services Tax, and heftier property taxes due to higher land values, also make price cuts from developers unlikely. 

Additional Costs for Sustainability Considerations

In line with the cost-push factors highlighted above, developers could also incur extra expenditure due to certain requirements for the awarded GLS sites. These requirements incur additional consultancy and surveying fees for special impact assessment studies which adds to the developers’ costs. Examples of recent GLS sites necessitating special impact assessments are Upper Thomson (Parcel B).

Due to Upper Thomson (Parcel B)’s proximity to the Central Catchment Nature Reserve, developers must incorporate biodiversity-sensitive strategies as part of their proposed developments. This is to ensure Springleaf’s rich biodiversity is protected, as well as to strengthen ecological connectivity along the Khatib Nature Corridor. 

Additionally, the site houses a conserved building, the former Seletar Institute, and an open communal space that must be restored and integrated into the resulting residential development. 

So, what could cause new home prices to fall?

 In the event that new home prices decline, we posit two reasons that could result in such an outcome.

A major economic shock leading to a decline in household income 

Major economic shocks, leading to job losses and declining household income, may trigger price corrections in Singapore’s property market. This is evident from past cycles where the property market saw adjustments during the three major financial crises since the 1980s. Since then, the Government has implemented multiple rounds of cooling measures, as well as tightened borrowing conditions to encourage financial prudence. 

Chart 3: GDP growth versus Property Price Index

Singapore starts experiencing a decrease in population

Like many developed countries, Singapore is experiencing an aging population with more than half of Singapore’s residents aged  65 years or older. Currently, the country’s working population is bolstered by non-residents who play a vital role in  sustaining an aging workforce. Unless the government tightens its foreign labour policy, Singapore is unlikely to see a substantial population decline in the medium term, a factor that could influence housing demand, and by extension, new home prices.

Chart 4: Total Population versus Proportion of Singapore Residents (65 years and older)

Conclusion: Lower land costs may not necessarily translate into lower selling prices for upcoming new launches in the foreseeable future

While lower prices for GLS sites in the past year may appear to point towards lower new launch prices on the horizon, this is unlikely to be the case in the current market, as well as for the foreseeable future.

Although comparatively lower GLS site prices were observed in the past year, as seen through the examples above, this trend is unlikely to persist in the current market or the near future.

At present, lower land bids by developers can be attributed mostly to growing project costs and risk premiums. This is especially so for larger projects and those incorporating new home typologies or criteria. 

Due to these factors, developers are more cautious about their land bids, and more selective about the sites they are bidding on. However, developers are expected to keep prices for new launches steady – as they undertaking greater risks while balancing buyer’s affordability. 

Furthermore, with more GLS sites being awarded since 2021, many developers now possess ample land stock and are focusing on selling their existing new home supply. Unless the upcoming GLS sites possess attractive qualities (e.g. proximity to amenities or good schools nearby), they will be unlikely to attract a large number of bids by developers, much less aggressive ones. This raises the likelihood of GLS land prices staying stable for the foreseeable future. 

This stability in land prices, suggests that private home prices are likely to remain steady; this aligns with URA’s goal of meeting homebuyer demand and achieving market stability, thus ensuring a healthy, well-balanced property market going forward.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Picture this: You end a long day of work, and step foot into the mega-development you call home. You are immediately greeted by the familiar sights and sounds of children frolicking about, enjoying their playtime in the estate gardens and the splash pools as the sun sets.

Their parents, who are watching closely, are chatting among themselves. Meanwhile, other residents are seated in an airy alfresco pavilion, catching up with their friendly neighbours over a delicious potluck dinner.

Not everyone may find such a view welcoming – but if you are drawn to the dynamic and vibrant nature of large, urban communities – life in a mega-development may just be the thing for you.

What is a mega-development condominium?

Mega-developments are condominiums that house 800 or more units. A prime example of a mega-development is the Treasure @ Tampines, home to an astounding 2,203 units. 

Mega-developments are generally seen as a fantastic option for owner-occupation properties. The expansive land area permits upscale amenities, while the significant number of units maintains a lower maintenance cost.

There are two current mega-developments available, located in District 15. Furthermore, 2024 will see a further three expected mega-development launches. These include a project in the Rest of Central Region (RCR) and two in the Outside Central Region (OCR). All three developments have 99-year tenures.

Table 1: Current and upcoming Mega-developments launching (2024)

Today, we explore the pros and cons behind living in a mega-development, and who are the buyers that will find value staying in one. 

Mega-developments offer more facilities – at a lower maintenance cost

There is an age-old saying: “The bigger, the better.” To a certain extent, this is true for large-scale residential projects in Singapore, particularly mega-developments.

Mega-developments occupy large sites, allowing for more common facilities. To illustrate, the Treasure @ Tampines houses 128 facilities, including an aqua aerobic pool and a trampoline courtyard. By contrast, the Alps Residences, another project within the same district (D18), has only 31 facilities.

Even though residents of mega-developments get to enjoy a wider selection of facilities, the maintenance fees payable tend to be on the lower end, as they benefit from economies of scale, with more residents contributing to maintenance fees. 

We conducted a study comparing the maintenance fees payable for three notable mega-developments to another three mid-sized developments within the same districts. Firstly, the three mega-developments offer up to an impressive 128 facilities. Secondly, residents of mega-developments could pay between 7% – 26% lower maintenance fees than mid-sized developments.

Table 2: Comparison of maintenance fee and number of facilities 

Mega-developments offer a vibrant and dynamic environment

Life in a mega-development is always vibrant and lively – there is never a dull moment as there is always something going on in the estate!

Mega-development condominiums offer a wide range of amenities. From common amenities such as swimming pools and exercise areas to unique offerings like jamming studios and virtual golf rooms, mega-developments have something for everyone.

This creates opportunities for interaction among community members. Young children will have no shortage of peers to socialise with at the many playgrounds and child play areas. Adults can enjoy the many fitness facilities and communal areas for work-from-home arrangements. Seniors in particular benefit from the vibrant community and activities to keep themselves active and occupied. This makes mega-developments a fantastic choice for multi-generational families.

Mega-developments are a fantastic property choice for people who enjoy hosting. From barbecue pits to tennis courts, the countless facilities found in a mega-development are sure to make guests of all ages feel welcome and entertained. 

There are also regular events and activities organized by the management corporation of these large developments. Fancy joining a Easter egg hunts or a Mid-Autumn Festival walk around the development and bonding with your neighbours at the same time? One can expect higher participation rate than in a regular condominium. This will provide management with more resources to plan these events, resulting in more frequent and larger scale events that provide fun and enrichment for residents.

Mega-developments make a worthwhile investment property

Mega-developments typically see a high number of transactions. This is due to the sheer number of units of various sizes and configurations available.

Given the size of these mega-developments, the likelihood of a transaction happening in the development is higher, as there are more units available. With higher sales frequency, we can expect healthier price growth.

Comparing our three earlier examples of mega-developments and smaller developments in the same district, we can conclude that mega-developments generally see better price growth.

Table 3: Comparison of Price Performance

A deeper dive comparing the two District 19 projects, The Gardens Residences and The Florence Residences (mega-development) further illustrates this. We can observe how the sheer number of units and transactions a mega-development can contribute to a healthy price growth.

Chart 1: Example of Mega-developments vs a smaller development in District 19

While mega-developments offer many upsides, there are a few cons that might make them unsuitable for some property buyers.

Privacy-conscious homebuyers may find mega-developments unsuitable

The first and most obvious drawback is the lack of exclusivity. Mega-developments may not be for you if you prefer a more private and quieter environment, as there is an almost perpetual state of activity going on, with people walking around, children playing, and noise being made.

There is also a higher likelihood of units being bought and sold within mega-developments. This leads to people constantly shifting in and out, and regular renovations, which might feel disruptive for residents. 

Buyers that idealise a private and quiet atmosphere would find something like a boutique development, which has less than 100 units more desirable to live in, as compared to the sprawling size of a mega-development.

Facilities might end up under-utilised or under-maintained

While mega-developments pride themselves on the large number of facilities they have to offer, they are not always in use by residents. This is especially true for less-used facilities (such as virtual golf rooms, or jamming studios), which often find themselves under-utilised and under maintained.

Popular facilities such as swimming pools or children’s playgrounds that see regular usage are also likely to degrade faster, requiring more frequent upkeep.

Due to the large size of these projects, it is not uncommon to see run-down areas, a side-effect of the struggle to keep such a large estate in good condition. This is especially true the older these developments get.

Mega developments are crowded and sometimes inconvenient

The larger number of people that stay in mega-developments results in more competition to use popular facilities. Tennis courts and function rooms often have to be booked in advance through an online process with limited slots. Free-use facilities such as lap pools and gyms are often be packed, especially during peak hours.

Residents might have to find themselves visiting these facilities at weird timings just to avoid the crowd, which takes away the convenience factor of having in-house facilities.

This aforementioned waiting time caused by crowds also spills into other common areas, notably lifts and parking areas. Lifts in mega developments are often slow, due to the sheer number of people that use them. Bear in mind that with more residents comes more food delivery riders, couriers, and movers, who all share the use of the same lifts.

Those who drive to work also feel the brunt of the crowd when leaving the compound in the morning. With a large number of people trying to leave the condo through the same egress points, residents are bound to run into ‘traffic congestion’ even before exiting the premises.

Is a Mega-Development Right for Me?

Based off these aforementioned factors, we can conclude that mega-developments are fantastic, value-for-money properties, both for owner-occupancy and as an investment property.

They make an excellent choice for families with children, as they have the most to benefit from the diverse range of facilities available right at their doorstep. Fancy the idea of an entire day of entertainment – without the need to leave the front gate!

The lively atmosphere inside these mega-developments also make them a fantastic option for older folks who are downgrading. Chock full of activities and amenities, they provide seniors with the activity level, friends and community needed to keep them engaged and to prevent them from feeling lonely.

These facilities have proven to evolve along with the needs of its many residents. A fantastic example of this are newer developments creating communal spaces that are conducive towards and can function as co-working spaces for people with remote working arrangements – a trend that is common these days.

Facility bookings are often done via smartphone apps nowadays, which adds to the ease of access and convenience that residents of these mega-developments can enjoy.

Offering a fantastic value proposition alongside a multitude of lifestyle factors built into the property itself, it is no wonder why mega-developments are on the rise, and why you should strongly consider one as your next property purchase.

To find out more about the upcoming mega-development launches, speak to an ERA Trusted Adviser today.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

District 15 possesses a unique blend of heritage, convenience and quietness. It has always been lauded by Easties as one of the best places to live in Singapore.

Being a location well loved by both locals and expats alike, District 15 has always been a popular district among homebuyers. This is due to the allure and unique lifestyle offered by the seafront living experience.

If you have always dreamed of living along the East Coast, here’s your chance! There are several District 15 New Launch condos available on the market right now – which could end up becoming your dream home.

Table 1: New projects on sale in District 15 

Development	Street	Tenure	No. of Units	Price PSF starting from ($)
Grand Dunman	Dunman Road	99-LH	1,008	$2,041
Straits at Joo Chiat	Joo Chiat Place	FH	16	$2,080
Ardor Residence	Haig Road	FH	35	$2,114
Tembusu Grand	Jalan Tembusu	99-LH	638	$2,174
Claydence	Still Road	FH	28	$2,300
Atlassia	Joo Chiat Place	FH	39	$2,388
The Continuum	Thiam Siew Avenue	FH	816	$2,592
Meyer Blue	Meyer Road	FH	226	Yet to launch
Emerald of Katong	Jalan Tembusu	99-LH	846	Yet to launch

Source: ERApro as of 14 May 2024, ERA Research and Market Intelligence

What’s There in District 15?

When someone says they live in a property with a sea view, areas such as “East Coast”, “along Siglap” or “the Marine Parade area” come to mind. These areas fall under District 15, where residents staying in high floor units often get to enjoy an immaculate view of Singapore’s South-Eastern coastline and East Coast park.

While people often associate East Coast Park with District 15, it does not include the entire 18km of reclaimed coastline. Located in both the Outside Central Region (OCR) and the Rest of Central Region (RCR), its locale includes Amber Road, East Coast, Joo Chiat, Katong, Marine Parade, Meyer, and Tanjong Rhu.

There is also a large landed enclave and many small developments scattered across the district, creating a quiet and exclusive atmosphere. In addition, much of the land at Meyer Road and Amber Road has a 999-year or freehold lease, a legacy from the 1800s. At the same time, these areas are within walking distance of amenities, making District 15 a highly coveted estate to live in.

Amenities and Conveniences in District 15 

District 15 is home to the famous and history-rich areas of Joo Chiat and Katong. Populated by colonial shophouses, these iconic buildings are now famous for their lifestyle offerings amon­­gst locals and the expat community, with cafes, bars, restaurants, and well-known eateries. There are also several popular schools in the district, such as Victoria School and CHIJ Katong Convent.

Great for nature, exercise and pet lovers

District 15 is a fantastic area to stay in if you are a pet lover. Areas such as Joo Chiat and Tanjong Katong are home to a variety of pet stores and vet practices. This ensures that your animal companions’ needs are always cared for.

There is also a high density of dog-friendly cafes and restaurants in the area. East Coast Park is another highlight for dog owners, as it is not only a fantastic place to walk your dog, but also houses the largest dog run in Singapore. A dog swimming pool, and a pet megamart can also be found there.

The park comes to life, especially on evenings and weekends. From cyclists and fitness enthusiasts, the vast park is home to people of all interests. There are also a variety of food options available, notably seafood restaurants, where families in the area often go to for their meals.

District 15 is seeing improved connectivity in 2024

Previously, the East Coast area used to be ‘neglected’ in terms of connectivity, without access to an MRT line. Partly due to reclaimed land requiring time to settle, there were only bus services to shuttle residents to their workplaces in the city centre or other parts of Singapore.

However, the eastern region of the Thomson-East Coast Line (TEL) will soon be ready by June 2024. It will connect passengers from Bayshore in the East to Woodlands in the North via the Central Business District.

Future plans

It is likely that further changes will come to the area in the future. This is part of the Government’s proposed “Long Island” plan to marry coastal protection measures with new homes, coastal parks, and recreational spaces.

Along the East Coast Parkway, east of District 15, Bayshore will be developed as a smart and sustainable car-lite estate with amenities and recreational spaces. Homes will have sea views. The East Coast Green Corridor will run through this town. This will provide residents with another 20km of upcoming coastal and waterfront parks.

Price Performance

District 15 has outperformed island-wide, in terms of average price per square foot (psf) of units transacted (see Chart 1). Historically, there has been a high demand for homes in District 15 due to its unique location. This has led to people flocking to buy both new and resale properties there.

Chart 1: Price performance of non-landed properties in District 15.

We can also expect to see further price uplifts from the MRT effect, with Phase 4 of the TEL set to be opened in June 2024.

As District 15 becomes more connected through enhanced transportation infrastructure and improved amenities, both current owners and potential buyers can anticipate a significant increase in property value and quality of life.

Conclusion

Based on ERA’s proprietary data between 2021 and April 2024, 56.8% of buyers of District 15 new launches were previously living in the East.

For those who live in the East and proclaim “East side, best side”, many of their reasons to support this claim can be traced back to District 15.

If you would like to become an Eastie too, now is the perfect time to make your wish come true. The current inventory of new launch condominiums available will suit the criteria of any buyer. It includes exclusive boutique developments of as small as 16 units (the Straits at Joo Chiat) to sprawling mega developments that house up to 1,008 units (Grand Dunman).

The majority of these new launches are also freehold properties, which is a definite plus for most buyers. To find out more, check out the ERA Projects Online Gallery here, or speak to an ERA Trusted Adviser today!

Disclaimer

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