Key Survey Findings
Most people surveyed are willing to increase their housing budget for a home with better connectivity and convenience, according to a survey by AnjiaSG on this increasingly prominent issue. This is not surprising given the rising cost of car ownership, with Certificate of Entitlement (COE) prices recently exceeding S$100,000. As a result, many are re-evaluating whether living in a well-connected location is a more sustainable and cost-effective option than owning a car.
A quarter of respondents also indicated a willingness to increase their housing budget by more than 10% for a property with direct access to an MRT station. Respondents also highly value the convenience of having amenities such as supermarkets and affordable dining options nearby. Notably, respondents consider a property’s convenience and connectivity to be more important than its location in a central area.
Survey Methodology and Respondent Profile
An AnjiaSG online survey on housing connectivity and convenience, conducted between June 17 and 30, received 1,247 valid responses. The majority of respondents were aged between 41 and 65 (68%), with 45% living in HDB flats, followed by condominiums (38%) and landed properties (16%).
Purchase Intentions
361 respondents indicated they expect to purchase a residential property in the next 12 months. Among them, 57.9% plan to buy for their own stay, with an average budget of S$1.9 million. A majority (77.8%) are considering purchasing a unit in an integrated development, which offers better connectivity and convenience.
Supermarkets, Affordable F&B, and MRT are Top Convenience Factors
Supermarkets were identified as the most important amenity in an integrated development, with 87% of respondents stating they are important. Affordable dining options (69%) and walking distance to an MRT station (66%) rounded out the top three convenience factors.
On the other hand, large gyms, walking distance to the workplace, and beauty services were considered the least important convenience factors.
Willingness to Pay More for Connectivity and Convenience
The rising cost of car ownership will lead more people to rely on public transport, making easy and quick access to the MRT a crucial factor. For groceries and other daily necessities, a supermarket within walking distance can also reduce shopping time and travel distance.
Nearby public transport nodes provide residents with much-needed connectivity, so it is not surprising that 85% to 92% of respondents are willing to pay more for a home near such facilities. Respondents are also willing to increase their housing budget to live near supermarkets (83%) and affordable dining options (78%). Similarly, tenants are willing to pay higher rent for properties close to these amenities, which bodes well for investors interested in such properties.
Our survey results also show that direct, sheltered access to an MRT station can significantly increase a property’s value, with 27% of respondents willing to increase their housing budget by at least 10% for such a property. Furthermore, 19% are willing to increase their housing budget by 10% to live within walking distance of an MRT station.
Many respondents consider supermarkets and affordable dining options as important amenities, but they are less willing to pay more for properties near these facilities compared to those with direct MRT access. This is a good indication that connectivity is valued more than convenience.
Additionally, more owner-occupiers than investors are willing to pay a premium for proximity to an MRT station. This is understandable, as owner-occupiers directly benefit from the connectivity of having direct access to transport nodes.
Time is Money
68% of respondents agreed or strongly agreed that they would increase their housing budget for an integrated development to save on future transport costs. This tendency is even more pronounced if their daily commute time can be reduced.
To save 5 minutes on their daily commute, 4% of respondents are willing to increase their housing budget by more than 10%. For a 30-minute saving, this figure rises to 12%, and for a 1-hour saving, it’s 36%. In fact, a majority of respondents are willing to spend 5-10% more on their housing budget if they can save 30 minutes on their commute. This situation vividly illustrates that time is money.
Connectivity and Convenience Trump Central Location
The Central Area of Singapore is often considered an ideal residential district due to its proximity to the Central Business District and Orchard Road. However, four out of five respondents indicated that they would prefer a property in a non-central location with good transport links and nearby amenities over a property in the city center with poor connectivity and convenience.
The preference for convenience and connectivity over a central location is understandable. This is also reflected in the rising property prices in the Outside Central Region (OCR), for example: the highly popular launch of AMO Residence (which sold over 98% of its units on the first day), and the recent collective sales of Chuan Park and Euro-Asia, with expected redevelopment prices exceeding S$2,200 per square foot.
Related Articles:
Integrated Developments are Rare and In High Demand
Newly launched integrated developments are generally very popular with buyers. For example, the 407-unit Piccadilly Grand, which has a link to Farrer Park MRT, sold 77% of its units over its launch weekend in May. A month later, the sales rate had increased to 80%.
Midtown Modern, launched last March, sold 61% of its units on its opening weekend. Due to its prime location in the heart of Bugis, this 558-unit project reached a sales rate of 76% by June.
Our survey results show that convenience and connectivity trump a central location. The most representative example is Sengkang Grand Residences, which sold 32% of its 680 units upon its launch in November 2019. The project is now sold out.
Additionally, the integrated project Pasir Ris 8, launched last July, quickly sold over 85% of its 487 units in its first weekend. As of June, its sales rate had increased to 90.3%. The strong sales of integrated developments have prompted other developers to re-price their projects.
Project Information:
Now, all eyes are on Lentor Modern, a project by GuocoLand, expected to launch in September this year. This 605-unit integrated development is directly connected to the Lentor MRT station on the Thomson-East Coast Line, just 9 stops from Orchard. The property features 96,000 square feet of commercial space, including a 12,000 square foot supermarket and a 10,000 square foot childcare center. Upon completion, this project will be part of the new Lentor Hills estate under the North-East Region Master Plan. Nearby schools include Anderson Primary School, Presbyterian High School, Mayflower Primary School, and CHIJ St. Nicholas Girls’ School.
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
