In recent years, there has been a rise in the number of mixed developments in Singapore. A mixed development is one that encompasses both commercial and residential units. With the fast growing population, there has been a surge in demand for homes and amenities alike in land scarce Singapore.
Developers have now thought of a solution to satisfy this demand by integrating both residential and commercial units into a single development.
What does this mean to someone who is looking to invest in such developments and why are such developments gaining popularity?
Well, mixed developments are perfect for buyers who are seeking convenience of nearby shops. As explained by Mohamed Ismail, Chief Executive of PropNex, the demand for mixed-use developments have become more popular compared to 20 years ago. This could be because Singaporeans now prefer a lifestyle that values convenience above other things. Buyers can just walk down from their homes to do their retail and grocery shopping. With so many amenities at their doorstep, buyers will hardly have to travel far from the comforts of their home, and they could save considerably on fuel and parking costs as well.
In addition, mixed developments tend to have a higher potential for capital/rental appreciation, especially in the rental market due to the presence of the retail outlets. These commercial units, especially the popular retail clothing and dining outlets, have a tendency to attract crowds from the neighbourhood. The high human traffic to the development is something that all investors love and is great for increasing the valuation of the property.
The latest mixed development in Singapore that is gaining much popularity is The Midtown and Midtown Residences in Hougang. It is located just 250m from Hougang MRT (3 min walk) and houses 160 residential apartments, 51 retail outlets and 55 duplex restaurants and cafes with a supermarket located at the basement. For investors who are familiar with the mature estates in the city fringe area, they will know that The Midtown and Midtown Residences is a indeed a rare gem as there are not many projects that are located right beside the MRT and bus interchanges. This is a great plus point for investors and residents alike.
Indeed, with the increasing demand for convenience as well as the shortage of land supply in Singapore, it seems like there will be more mixed developments arising in future. It is now up to each individual investor to see if he wants to take advantage of this opportunity to invest in these promising developments.