Integrated developments are large-scale projects that combine multiple uses, such as residential, commercial, and transport hubs, into a single location. Compared with mixed developments, which also have commercial malls and residential units, integrated developments have the additional benefit of direct integration into an MRT station and / or bus interchange. This added advantage means that integrated developments typically command a premium over mixed developments.
Imagine staying at an integrated development – you have the convenience of a supermarket, shopping mall, MRT station and bus interchange just seconds away from your doorstep!
Whether you have a sudden bubble tea craving or need to buy food for a gathering that you are hosting, everything is within minutes from your home.
Your children can attend enrichment classes while your elderly parents, 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.
In addition, malls that are part of integrated developments tend to be larger and better managed by the developer themselves or sold collective to another investor (e.g. REIT/fund). Proper mall management ensures a proper tenant mix in the mall which means you will have a wide variety of retail shops to choose from. With a curated tenant mix, the needs of residents are better catered to.
Travelling also becomes a breeze – you can always take a direct bus or MRT train to work / school within air-conditioned comfort.
Rare Status of Integrated Developments
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).
Profitability of Integrated Developments
Looking at recent integrated developments completed in the last five years (since 2019), both Pasir Ris 8 and Sengkang Grand Residences have seen 100% profitable transactions.
Both Pasir Ris 8 and Sengkang Grand Residences have 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.
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
Having direct access to MRT station and bus interchange makes integrated developments 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.
Integrated developments like Bedok Residences, Hillion Residences, Northpark Residences and Sengkang Grand Residences have achieved higher rental prices of over 12.7% to 49.2% as compared to other private condominiums in the district. Compass Heights and The Centris are the exceptions, due to the older age of the developments and the presence of newer developments in those region.
As you might imagine, integrated developments are more expensive than non-integrated developments due to their conveniences. It is important to do due diligence to understand what is a fair price premium to pay the conveniences that an integrated development offers.
If you are looking to invest into an integrated development in 2025, here is your opportunity!
Parktown Residences at Tampines North is scheduled to launch in Feb 2025. It will be the largest integrated development in Singapore with over 1,193 residential units in addition to a mall, MRT station, bus interchange, community centre and hawker centre.
If you are keen to explore Parktown Residences for your next home / investment property, connect with Dominic Choa Real Estate today!
