What are the factors that helped mixed developments become profitable

Mixed developments can become profitable due to several factors:

1. Diverse Usage: Mixed developments comprise residential units, offices, and shops, allowing for a variety of uses within one development. This diversity can attract a wider range of tenants and buyers.

2. Higher Maintenance Levy for Shops: Shops in mixed developments incur higher maintenance expenses due to their usage of facilities like air-conditioning and escalators. As a result, they are allotted a larger share value and pay a higher levy, contributing more to the overall revenue.

3. Strategic Location: The building form and location of mixed developments are determined based on the site and street block plans, ensuring they are situated in areas that maximize their commercial and residential appeal.

4. Strata Subdivision: The allowance for strata subdivision in mixed developments enables the sale of individual units, which can be more profitable than selling the entire development as a single entity.

5. Commercial Quantum Control: Mixed commercial and residential developments have a maximum commercial quantum control of 40% of the total allowable GFA, ensuring a balanced mix that can cater to both residential and commercial needs effectively.

These factors collectively contribute to the profitability of mixed developments by optimizing the use of space, attracting diverse tenants, and ensuring strategic placement and management.