In recent years, mixed-use developments have increasingly become the preferred choice for homebuyers and investors in Singapore's real estate market. These integrated developments are not just simple residential areas but combine residential, commercial, and retail spaces, sometimes including community facilities and cultural activity centers, offering residents a convenient and diverse lifestyle.
For instance, Pasir Ris 8, located in the eastern part of Singapore, launched in November 2023, features two-bedroom units of 710 square feet priced as high as S$1.49 million, equating to S$2,101 per square foot. In comparison, the similarly timed launch of the pure residential project Bartley Vue saw a median price increase of only 4.9% for similar-sized units. The significant price hike of Pasir Ris 8 reflects the high demand and recognition for mixed-use developments in the market.
shicheng.news
According to The Straits Times, of the 11 condominium projects with ownership titles launched in 2021, five were mixed-use developments, and six were pure residential projects. Mixed-use developments generally showed stronger median price growth compared to pure residential projects. The two-bedroom units of Pasir Ris 8 in November 2023 were priced S$564 per square foot higher than at their 2021 launch, showcasing the robust performance and popularity of mixed-use developments in the market.
The appeal of mixed-use developments primarily stems from their unique convenience and lifestyle design. For example, Pasir Ris 8 is located next to the newly opened Pasir Ris Shopping Centre, offering residents easy access to shopping, dining, and leisure facilities. This convenience not only enhances the quality of life but also increases the property's investment value. Elaine Chang, a resident of Dairy Farm Residences, mentioned that she chose such a mixed-use development not only for its convenient amenities but also for the combined community atmosphere and facilities.
While mixed-use developments demonstrate strong market performance, some well-located pure residential projects also attract attention. The luxury waterfront condominium The Reef at King’s Dock on Harbourfront Avenue, for instance, saw a 22% overall median price increase, highlighting its competitiveness and investment potential in the high-end market.
shicheng.news
From a Government Land Sales (GLS) perspective, approximately 33% of land parcels have been allocated for mixed-use developments since 2018. This statistic reflects the market's continued demand and favorable outlook for such multifunctional projects. In the first five months of 2024, three out of five approved land parcels were designated for mixed-use developments, further indicating strong investment enthusiasm and recognition for these projects.
However, the market remains optimistic about well-located pure residential projects. According to the Urban Redevelopment Authority, from 2021 to May 2024, the overall median prices for the mixed-use projects One Bernam and Midtown Modern increased by 19.5% and 16.4%, respectively, showing their high popularity and superior performance in the market.
