Are Integrated Developments Worth The Hype? Here Are 5 Reasons Why

By Jean Choo

For many homebuyers, integrated developments tick all the boxes in terms of offering seamless transport connectivity via direct access to the MRT and bus interchange, as well as having a wide range of retail and F&B offerings at their doorstep.

First, what is an integrated development? Not to be confused with mixed-use developments, integrated developments are large-scale projects that combine multiple uses, such as residential, commercial, and transport hubs, into a single location. The key difference between them lies in the direct integration to a transport node, which mixed-developments do not have.

The idea behind an integrated development is to create a self-contained community where people can live, work, and play under one roof and enjoy a seamless commuting experience via the integrated transport hub. Some of the features of an integrated development include retail shops, recreational and community facilities as well as a weather-proof connection to the transport hub – be it an MRT station, bus interchange or both.

Integrated developments often feature a good mix of housing options to meet the needs of diverse groups of buyers, from singles to young couples to families. Such properties in Singapore are immensely popular amongst home buyers and tenants, regardless of their locations, whether they are in the suburbs or central region. They offer a range of benefits to their residents including greater convenience, access to a variety of services and amenities, as well as thriving community spaces for greater social interaction.

There are several advantages to living in an integrated development:

1. Convenience: One of the biggest advantages of living in an integrated development is the convenience that it offers. Direct access to the MRT station will help to cut commuting time and it could even offer a commute that is entirely sheltered from the rain, straight from home to the workplace.

2. Community: Integrated developments often foster a strong sense of community among residents. With more shared spaces and amenities, residents have more opportunities to interact and socialise amongst themselves, which can lead to a greater sense of belonging and enhance community engagement.

3. Security: Many integrated developments have security measures in place, such as gated entrances, security cameras, and on-site security personnel. They provide residents with a greater sense of safety and security, despite living above a bustling mall.

4. Access to amenities: Integrated developments often have a wide range of amenities, such as parks, playgrounds, swimming pools, gyms, F&B outlets and retail shops. Proximity to such offerings provide residents with a high quality of life, making it easier to balance work and leisure activities.

5. Evaluating the potential financial outcomes, integrated developments tend to command better premiums in terms of resale profit and rentals. Owners of these homes stand to enjoy substantial price appreciation and yields on their property values. Not to mention that these properties tend to appeal to a larger pool of tenants and prospective buyers due to their attractive attributes – thus owners would face little to no trouble in finding a buyer or tenant.

Analysing five integrated projects which were launched and sold in the 2010s against their resale price growth in 2022, it was found that these projects saw their resale value increased by 16% to 26% from their new launch prices. For instance, Park Place Residence at PLQ which was launched in 2017 at an average launch price of $1,806 psf, had achieved an average resale price of $2,151 psf in 2022, up by 19% just 5 years from the year of launch.

Analysing the same 5 integrated developments and their resale premium in 2022, it was found that these projects sold at a premium of 15% - 56% in 2022 over their non-integrated counterparts within the same district. For instance, Bedok Residences had an average resale price of $1,559 psf in 2022, a premium of more than 20% over the average resale prices commanded by other private condo projects in District 16.

In terms of rentals it was found that these integrated projects fetched a 21% - 62% premium over other projects in the same district in 2022. For example, North Park Residences had an average monthly rental of close to $5,000 in 2022, marking a premium of nearly 48% over the rentals transacted at other private condo projects in District 27.

That integrated developments should command a premium over other projects in their respective districts is not surprising, given that their appealing attributes – convenience, connectivity, and sense of community – make them highly attractive to both tenants and owner-occupiers alike.

However, some considerations which owners may have to be aware of would be the potentially higher fees for the upkeeping and maintenance of the development, owing to the complexity of the such projects. Secondly, for those looking for a more secluded and quiet living environment, an integrated development could be a tad noisy with more shopper traffic and commercial activities.

That said, the benefits of living in an integrated development largely outweighs the downsides. In a fast-paced society such as Singapore where convenience and accessibility are highly valued, integrated developments which offer seamless connectivity and easy access to a wide range of amenities, remains sought-after by buyers

Some integrated developments that are currently on the market include: CanningHill Piers; Lentor Modern; Midtown Modern; Pasir Ris 8; and Piccadilly Grand. These projects have all achieved more than 87% sales as of end-March 2023. Two other integrated developments, Sengkang Grand Residences and The Woodleigh Residences are sold out. Meanwhile, a new integrated development in Jalan Anak Bukit - The Reserve Residences - is set to be launched in May 2023, providing more options for home buyers.

Contact a PropNex agent to find out more about buying opportunities at the highly coveted integrated developments today.

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