Enter the juggernauts

Michelle Bong

Competitive pricing, lower monthly maintenance fees and a wider number of facilities add to the appeal of mega condo projects

According to an article in The Straits Times in March, observers estimate there will be about 40 to 50 new property launches by year-end. This comes from the wave of successful collective sales of the past few years.

Among them will be mega properties — typically those yielding over 1,000 units for sale — such as Avenue South Residences and Parc Clematis, joining the already-launched mega options list which includes Treasure at Tampines, Riverfront Residences and Stirling Residences.

Why the deluge of such properties now?

ERA Realty Network's key executive officer Eugene Lim says developers generally launch their projects when they are ready, regardless of the size of the development. Mr Lim adds that given the more challenging environment after last year’s cooling measures and the large number of upcoming project launches, many of them prefer to launch earlier rather than later.

Buy buy buy

Evidently, such properties are popular among home shoppers here. At their launch weekend, The Florence Residences — the first mega project of this year — sold close to 60 out of 200 units while Treasure at Tampines shifted 272 out of 490 units.

Meanwhile, Affinity@Serangoon and Riverfront Residences also did well, no doubt partly due to factors such as location and accessibility.

Competitive pricing and cost savings are two factors behind their appeal. Sim Lian Group Limited executive director Kuik Sing Beng says Treasure at Tampines' sheer size lowered monthly maintenance fees.

He explains: "The size of the development provides greater value to home buyers and investors. About 60 per cent of the site is dedicated to numerous facilities and landscaping, and there is a smaller concentration of units compared to a development of, say, 17, 20 or 30 storeys.

"Economies of scale also allow for more facilities to be enjoyed at very affordable maintenance fees. For example, the maintenance fee for a one-bedroom unit starts at $150*, while that of a three-bedroom unit and a five-bedroom unit starts at $180* and $240* respectively."

Concept living

Meanwhile, SingHaiyi Group, which will launch 99-year leasehold, 1, 468-unit Parc Clematis soon, is leveraging the communal living ("com-living") concept — an industry term that is gaining traction.

Says its deputy chief executive officer Gregory Sim: “We will be adopting this concept to offer residents amenities that cater to various multi-generation lifestyle needs.

"We take pride in the clever use of space and design to offer creative communal facilities, including co-kitchens and self-service washing machines. With our innovative take of the sharing economy, we are positive that potential home buyers will embrace the lifestyle and amenities offered."

Shaking up the scene

ERA's Mr Lim says home buyers may believe larger developments mean less privacy, congestion and longer waiting periods to use the facilities. But this is a fallacy.

He explains: "Mega developments come with far more facilities than a boutique development to cater to the needs of more residents. For instance, The Florence Residences and Treasure at Tampines have 128 facilities each.

"Such projects offer a different housing choice for buyers. Though some prefer the exclusivity of boutique developments, others prefer the extensive facilities of mega developments. Ultimately it is a matter of choice."

This could be a happy problem for buyers, be they first-time owners, investors or HDB upgraders, who will now have their pick of new lifestyle concepts within familiar neighbourhoods.

*Estimated figures, subject to change