Mega Developments: Are these condominiums worth the investment?

Mega developments, as referred to in Singapore’s private property market, are condominiums with over 1000 units. These developments usually cover a larger land area and would have the capacity to include more communal facilities such as tennis courts, swimming pools and BBQ pits. Over the years, there have mixed reviews with some adoring the space while others detest the size and amount of residents that these projects offer. In this article, we will analyse the mega developments constructed over the years and uncover the financial feasibility of owning a property in one of these developments.

Disclaimer: Please take note that this article does not constitute financial advice, we recommend buyers to perform their own due diligence before any purchase.

In this article, we will be looking at 11 different mega developments that are as follows:

1. Dleedon
2. High Park Residences
3. Kingsford Waterbay
4. Marina One Residences 
5. Melville Park 
6. Reflections at Keppel Bay 
7. Sims Urban Oasis 
8. The Bayshore 
9. The Interlace 
10. The Minton
11. The Sail @ Marina bay

Before we begin, please take note that market research on these prices do not take into account respective market conditions during the new sales and resales of each condominium development.

Here is an overview of the percentage increase in price psf since each development’s launch.

This graph measures the percentage growth of the average resale price over the average new sale price respective to each development’s time frame.

As we can see from the graph, there are varying amounts of capital appreciation and depreciation for each condominium development since its launch. Overall, all the condominiums have positive growth except Reflections at Keppel Bay which lost 9.33% of it’s initial value.

Let’s take a look at the obvious outlier in the graph – The Sail @ Marina Bay has a whopping 76.30%increase in price since its launch, more than doubling the second highest capital appreciation of High Park Residences at 27.88%. Having TOP-ed in 2008, The Sail at Marina Bay is the only residential building around the Marina Bay area close to the business district. With 70 storeys, it is one of the tallest residential buildings in Singapore and can be considered a status symbol among High Net Worth Individuals. Additionally, the bay area has undergone much rejuvenation since 2008 which could also be a contributing factor to its capital appreciation.

Coming in at second place, High Park Residences has a relatively high capital appreciation of 27.88%. Located at the edge of Sengkang, near Jalan Kayu, High Park Residences boast an impressive percentage increase in price given its location. Other than the large variety of unit types that also includes semi-detached units and bungalows, perhaps it’s the 118 amenities provided within the condominium that has enticed many to purchase it at a premium. On the down side, it’s a ways from town and the Central Business District via train and car.

Moving on to d’ Leedon, who has a mere 0.56% increase in capital appreciation. This development was completed in 2014 and is located in district 10, just a few minutes’ walk from Farrer Park MRT. Its average launch price was $1,573 psf and it’s average resale price over the last six years is $1,582 psf. With over 1700 residential units in 36 storeys buildings, it is one of the biggest mega developments in Singapore. Yet, it’s capital appreciation does not live up to the prestige of owning a unit there.

As seen from the three developments mentioned above, it is hard to read future prices of mega developments. Although location plays a huge part in resale value, it is not a characteristic that can be heavily relied on. A condo in Sengkang made massive gains while a condo in Farrer Park made little gains. Reflections at Keppel Bay, marketed heavily as a status investment, has lost value over the years since its launch. There are many other variables in play that can affect the resale value of a property on both ends of the value spectrum.

Overall, most mega developments, as non-landed private property, generally do appreciate, evidenced by the graph above. However, the amount by which they appreciate cannot be gauged. They are still subjected to the same market conditions as all other properties and can be considered no different in terms of resale values as normal condominiums. Therefore, one should do their own due diligence before investing in a mega development to come to the best possible decision made.

Read also: What are Super Penthouses
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