Is mixed development performance better than pure residential

In the Singapore real estate market, mixed-use developments have generally outperformed pure residential projects in several key aspects:

Sales Performance

Mixed-use developments have shown stronger sales performance. Out of 24 projects built on Government Land Sales (GLS) sites and launched between 2011 and 2020, 17 mixed-use developments outperformed the general market in first-month sales, with 14 of these projects ranking among the top ten best-selling projects in their launch year.

Price Growth

Mixed-use developments tend to exhibit stronger median price growth compared to pure residential projects. For example, the two-bedroom units of Pasir Ris 8, a mixed-use development, saw a significant price increase, whereas a similarly timed pure residential project like Bartley Vue had a much lower median price increase.

Rental Demand and Rates

Integrated developments, a subset of mixed-use projects, command better rental rates due to their proximity to amenities like MRT stations, shopping malls, and other commercial spaces. This convenience enhances the quality of life and attracts higher rental demand.

Investment Value

Mixed-use developments often come with a premium due to their unique offering of convenience and lifestyle benefits. This premium is seen as an investment in a lifestyle that can potentially yield substantial returns over time. The limited supply of such projects also helps maintain their value and prices.

Lifestyle and Convenience

The integrated nature of these developments provides residents with easy access to shopping, dining, leisure facilities, and public transport, which significantly enhances the quality of life and convenience. This blend of work, play, and living spaces is a major draw for homebuyers and investors.

Overall, mixed-use developments in Singapore have demonstrated superior performance in terms of sales, price growth, rental demand, and investment value compared to pure residential projects.