In most cases, developers put a 20% to 25% premium on integrated projects in comparison to other private condos in the neighborhood. However, for The Centris whose launch was in October 2006, the price gap widened after completion.
The Centris, which is a 610-unit condominium in a 99-year leasehold in Jurong West Central 3, has a link to the Boon Lay MRT and Jurong Point shopping centre and it is integrated with Boon Lay bus interchange. The area nearby only has HDB flats and there are no private condos.
The closest private condos are at Lakeside MRT, which is an MRT station away. These include Lake Grande and Lakeville by MCL Land. Lake Grande, which is next to an MRT, was launched in July 2016 and approximately 500 units were sold at $1,364 psf average price in the first week with 710 units or 85% being sold as of now. Lakeville has its all-696 units sold. The 99-year lease condo had its launch in April 2014 and units fetched $1,325 psf average price.
(Artist's impression of Lake Grande Entrace)
In 2006 when The Centris was launched, private condos near the Lakeside MRT with a leasehold of 99 years were Lakepoint Condo a 304-unit by JTC Corp completed in 1983, Parc Vista a 638-unit project by Far East Organization whose completion was in 1997 and Lakeholmz a 369-unit condo by Frasers Centrepoint whose completion was in 2005.
Based on caveats lodged, units at The Centris fetched $497 psf in October and November 2006. The closest rival was Lakeholmz whose resale price averaged $478 psf between September and November 2006 giving The Centris a premium of 4% above the price of Lakeholmz.
However, based on caveats lodged, between January and April in 2017 Lakeholmz units transacted at $816 psf while The Centris, whose completion was in 2009 commanded $972 psf in the same period, causing the price gap to widen to 19.1%.
However, new competition tends to erode the premium. When Caspian, a 712-unit condo on a 99-year leasehold near Lakeside MRT by Frasers Centrepoint had its launch in February 2009, units fetched $598 psf average price. During that time, The Centris was almost complete and the units fetched $552 psf in January and February, based on caveats lodged.
Nevertheless, Caspian whose completion was in 2012 saw its units fetch $1,054 average price between January and April 2017 according to caveats lodged.
“This shows that while integrated developments may not maintain the premium against more recent private condos nearby, they sustain their prices better in the long term,” said Tan.
Bedok Residences witnessed an overwhelming response from property buyers during its launch in November 2011 considering it is in an aging HDB town. The 583-unit that was launched in November 2011 had 350 units sold by CapitaLand, its developer, at $1,350 average price on its launch day. The development is linked to Bedok MRT, Bedok Mall and bus interchange. From January to April 2017, units were resold at $1,445 psf average price.
Bedok Residences has commanded a price premium since it is the only private condo in a 99-year leasehold in the town. The closest private condos are an MRT away in Tanah Merah that includes Grandeur Park Residences by CEL Development. Since it was launched towards the end of February, it has sold almost 74% or 530 units at $1,350 psf average price. The 99-year leasehold project is a mixed-use comprising of F&B units, shops and childcare centre.
You may be keen to read on some freehold cluster landed developments like the Belgravia Villas at Ang Mo Kio Avenue 5 and One Surin at Kovan. Please click on the links. Stay tune to Part 3 of Price Premium of Integrated Developments.