Can the Allure of Integrated Developments in Singapore Continue in the Secondary Market?
As the costs of car ownership continue to rise and the connectivity of MRT lines expands with the operationalisation of new lines, integrated developments have emerged as the preferred choice for property seekers. These developments offer residents fast access to various parts of Singapore, enhancing convenience with retail malls and community amenities that reduce the need for travel to secure essentials or engage socially.
Correspondingly, the residential segments of integrated projects have outperformed others in recent launches. For instance, Lentor Modern, launched in September 2022, sold 84% of its units during its launch weekend. Similarly, The Reserve Residences, part of a mixed-use integrated development in Bukit Timah, sold over 70% of its 732 units in the same timeframe. Moreover, it is well-documented that homes within integrated projects often command a premium compared to their surrounding counterparts.
However, this premium may deter some buyers and complicate the selling process for existing owners. As the city continues to invest in infrastructure and intensifies land use around transit developments, we anticipate increased competition for residential homes from neighbouring developments that are just a stone's throw away and accessible via sheltered linkways. The question remains: can the allure of integrated developments be sustained in the secondary market?
To validate our hypothesis, we analysed the search behaviour of visitors using the Demand Flexibility module in DataSense. This module tracks the proportion of visitors who viewed a specific project based on their IP addresses. A higher proportion of visitors exclusively viewing a project's listing indicates a greater number of potential buyers with strong intent. These property seekers are further along in the buying process—they are aware of the project and exhibit a strong desire to purchase.
We compiled the proportion of visitors who exclusively viewed a project compared to the next best competing project, determined by the proportion of visitors who viewed both the subject project and an alternative. The results are summarised in Table 1.
Table 1: Demand Flexibility Scores as of June 2024
Source: DataSense by PropertyGuru For Business
There are two key takeaways from our analysis.
First, integrated projects demonstrate a much stronger appeal, attracting a higher proportion of visitors with strong intent. With the exception of Park Place Residences at PLQ, competing projects generally have a lower percentage of visitors demonstrating high purchase intent as of June. The elevated interest in Parc Esta can likely be attributed to its status as a newer development located near an MRT station.
Second, the gap between the integrated development and its next best alternative narrowed if the area features an underground linkway to the MRT station (e.g., Park Colonial and Marina One Residences). The disparity is most pronounced when there are no close substitutes available near integrated projects and MRT stations along the same line.
So, what can homeowners do if they find their listings lagging behind the competition?
First, homeowners whose projects score lower than the next best option should encourage their agents to enhance their listings and emphasise the unique selling points of being part of an integrated development. Boosting listings can increase awareness and, by highlighting unique selling points, can attract more visitors further down the sales funnel.
While integrated projects typically represent a strong selling point, homeowners should particularly encourage their agents to bolster their listings if competing projects also offer compelling features—such as sheltered connectivity to MRT stations. This includes underscoring the advantages of being near shopping malls.
Conversely, investors looking to purchase units in integrated projects within the Central Business District should focus on other unique selling points. While integration to the commercial building and transport node is a significant advantage for projects outside the Central region, many Central Business District projects are already close to amenities and they usually feature sheltered connections to MRT stations. In these cases, the overall quality of the projects and their amenities becomes a more critical factor.
DataSense by PropertyGuru For Business
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