SINGAPORE – A 710 sq ft two-bedroom condominium unit at Pasir Ris 8 was sold at $1.49 million – or $2,101 per sq ft (psf) – in November 2023, a price almost 37 per cent higher than the launch price in 2021.
The unit was the last two-bedder to go in the fully sold 99-year leasehold integrated development, one of a number of mixed-use projects that saw handsome price hikes shortly after they were launched, checks by The Straits Times found.
ST looked at the sales transactions of 11 leasehold condominiums launched in 2021 across different districts and found that mixed-use developments generally saw stronger median unit price growth, compared with purely residential developments.
In the case of the Pasir Ris 8 condominium, which is integrated into the recently opened Pasir Ris Mall, a two-bedroom unit was sold at $1.09 million, or $1,537 psf, at its launch in 2021.
But there was such strong demand from the outset that the developer raised the selling price for the units six times in a single day during its launch weekend.
Experts said this underscored the increasing appeal of mixed-use developments, particularly those integrated with retail and transportation hubs.
The rise in popularity of such integrated developments – combining residential, commercial, and retail spaces, and sometimes located near or above MRT stations – has been a significant trend in recent years.
Property experts noted the amenities and transportation links have been key drivers of their value appreciation.
Mr Eugene Lim, key executive officer of ERA Singapore, said: “The convenience of having an MRT station and retail mall at your doorstep makes these developments appealing to buyers and they tend to hold their prices well.”
Mr Wong Xian Yang, head of research for Singapore and South-east Asia at Cushman & Wakefield (C&W), said mixed developments on average have outperformed purely residential developments.
He pointed out that this could be due to the former’s relative rarity.
Looking at major projects (more than 100 units) launched from January 2023 to May 2024, mixed developments achieved on average about a 47 per cent sold-out rate in their month of launch, as compared with single-use residential developments at about 39 per cent, said Mr Wong.
PropNex chief executive Ismail Gafoor said it is not uncommon for such projects to achieve higher take-up rates at their project launches as well. A number of mixed-use developments launched in recent years saw more than 70 per cent or 80 per cent of the units sold during the launch, he said.
Pasir Ris 8 sold 85 per cent of its units at its launch.
Another mixed-use development, J’Den in Jurong East, which will be directly connected to Jurong East MRT interchange and malls such as Westgate, IMM and Jem, sold 88 per cent of its units at its launch in 2023.