Property Hunt – Condominiums above malls

17 April 2009


For this edition of Property Hunt, we will be covering condominiums located on top of shopping malls.

Although not often discussed among property buyers, such condominiums offer great convenience as they are usually near MRT stations. We have a few scattered around Singapore's heartlands – Compass Heights at Sengkang, Sun Plaza Condo at Sembawang and The Centris at Jurong Point, Boon Lay.

Compass Heights
Developed by Nasidon Investments, a subsidiary of SGX-listed Fraser & Neave, this six-year-old condominium has 536 units spread across two-, three-, and four-bedroom apartments and penthouses. The monthly rent at Compass Heights is S$4,000 for a four-bedroom apartment.

A three-bedroom unit costs about S$1.18m, according to listings on the Singapore Expats website. According to the caveats lodged with URA, the average pricing per sq ft (psf) was S$500 in March and the average pricing psf was S$550 in February. There were no transactions lodged for January. In December, the only transaction was priced at S$554 psf.

Sun Plaza
This eight-year-old condominium was developed by Canberra Development and comprises 2-, 3-bedroom apartments and penthouses. The rental for a three-bedroom apartment ranges from S$3,000 to S$3,600. According to the statistics from the Property Guru website, the average pricing psf is S$495.

The Centris
This condominium is still being built. It is developed by Prime Point Realty (Guthrie Group). Its expected year of completion is 2012 with a total of 610 units. There are currently no listings for rental – because it is not completed. The listed price tag for a three-bedroom apartment ranges between S$620,000 to S$820,000.

According to the caveats lodged with URA, there has been quite a lot of interest in this condominium, which is located above the recently opened extended wing of Jurong Point Shopping Centre.

It has had 90 transactions reported over the past 12 months. The average pricing psf was S$600 in March; it was S$550 in February and S$560 in January.

Included below is our interview with Aaron Foeste, Director of SingRe Property Management:

Q: We seldom hear about condominiums on top of shopping malls. What is the market like for this type of condominium?
A: The demand for this type of development is in fact high. Although we may not hear much about it outside, talk about this type of development is particularly common among agents. They are built on top or beside the MRT station, which makes it really convenient for residents. If there is only one car shared between a couple, one may drive to work and the other may commute by MRT. The advantage for living so near the MRT station is that you do not even need to buy a car.

Who is the target market?
The target market is usually expats and young families who may not own cars. The young families will find the shopping mall located below a bonus.

Why do developers develop such condominiums?
By having a condominium above malls or MRT, developers are securing the most convenient spot in the neighbourhood. This means other developers will not own an area that is as convenient as the one owned by the original developer. This makes the development very attractive.

Will the area seem too crowded since there are often so many people in the shopping mall?
A: It does not really matter. Only residents are allowed in the condominium, which adheres to the per plot ratio guideline set by the Urban Redevelopment Authority (URA). So overcrowding is not an issue.

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