Looking at it from a commercial point of view, a buyer of a retail unit would already have a group of available customers ready and waiting from the residential area of the development. This is something that can guarantee a good amount of stable foot traffic to the shops situated below the residents.
In addition to this, the amount of mixed use developments that has been released under the GLS programme is pretty low. Since 2010, there have only been 8 mixed use sites sold, whereas residential sites in the same year totalled 83. We should see a sustained demand over the next few years due to mixed use sites being so scarce for Kingsford Waterbay.
Kingsford Waterbay Development
There are some analysts however, who argue that not all residential units found in a mixed use site will not promise a high rental yield as a strictly residential development in the same area.
It is believed that there is no real guarantee in the rental potential of Kingsford Waterbay in mixed use developments. It is normally the homes that are situated in close proximity to public transport hubs, like MRT stations, that tend to demand higher rentals as opposed to those homes in the same area that are not as accessible. Just because there are retail facilities at Kingsford Waterbay that have been added will not always guarantee better prices or residential rents. For the most part, one will find that what is yielded for mixed use development residential units will more than likely be the same, or close to, what is yielded in a strictly residential project found in the same area.
Kingsford Waterbay Condo
The Director of Research and Advisory for Colliers International, Chia Siew Chuin, feels that it is more likely that quite a few of these mixed developments for Kingsford Waterbayhave an additional retail section that is geared towards serving the residences in the immediate are. In some instances however, where there are over 25 retail units for example, the location then becomes critical. It would mean that the project would need to be situated in a location with heavy traffic, preferably close to a transportation hub, if one hopes to see a lively amount of shopper traffic for the retail element of the project.
Upcoming mixed use developments
It does appear that we will see a growth in mixed developments in Kingsford Waterbay entering the market if we go by the rising demand for convenience along with Singapore’s land supply being scarce. In fact, looking at the 2013 URA Draft Master Plan, it has been revealed that a new addition next to Holland Village has been set aside for a private housing project. Holland Village’s new 6 hectare extension is set to be completed over the next 2 years and will give an additional 1,500 private residential units in its mixed use developments.
Ascent at 456 is a development of Tiong Aik. It’s a mixed use freehold development that has the convenience of being situated along Balestier Road. It will feature 17 retail units, 28 residential units and 2 F&B outlets. Its close proximity to a number of amenities, such as several schools, Zhongshan Park developments and Novena Medical Hub will be of benefit to Ascent at 456.
A second mixed used Kingsford Waterbay development that is in the works that home buyers and investors alike should watch is the Venue Residences and Shoppes. A development by CDL (City Development Limited), it is situated along Upper Serangoon Road and will be comprised of 28 commercial and 266 residential units. In addition to the convenience and enjoyment of the various amenities that are offered in this developments, residents will also benefit from the amenities in the surrounding area, such as NEX Mega mall, Shaw Plaza, a number of food centres, and a variety of reputable schools in Kingsford Waterbay.