Insights

What should buyers know about homes in a mixed-use development?

A mixed-use development puts homes and other uses, usually shops, food outlets, a mall or offices, on the same site. For residents, the main gain is convenience: daily needs, and often transport, are a lift ride away. The trade-offs are more people passing through, some shared structures and services with commercial owners, and by-laws that have to balance two very different sets of users.

How mixed-use sites are zoned

URA's Master Plan uses several zonings that allow homes alongside other uses. The most common are "residential with commercial at first storey", which permits shops at ground level beneath homes, and "commercial and residential", which allows a larger commercial component such as a mall or offices. Larger white sites and town-centre parcels may combine homes with retail, offices, community facilities and transport links.

The zoning sets the minimum or maximum share of each use. That is why one development may have a small row of shops while another sits on top of a regional mall.

Examples in the directory

Several residential projects in this guide include a commercial element:

  • Lucerne Grand on Lakeside Drive has a nine-shop galleria on its ground floor.
  • Narra Residences in Dairy Farm includes four shops within the estate.
  • Bloomsbury Residences has a retail plaza of about 400 sq m, Bloomsbury Shoppes, within the development.
  • One Chuan Grove plans seven shops and a childcare centre alongside its apartments.
  • Linktown Residences at Hougang Central is planned with homes alongside a separate commercial component.
  • The Vanda Green on Dunearn Road is planned with commercial space at the first storey beneath its homes.

The scale ranges from a handful of shops serving residents to a town-centre complex drawing visitors from the whole area.

The appeal

**Daily convenience.** A supermarket, clinic, food outlets or childcare centre downstairs saves trips, particularly for families with young children and older residents.

**Transport links.** Many larger mixed developments sit on or next to an MRT station or bus interchange, because the commercial element needs the footfall.

**Activity and services.** The commercial side tends to bring longer opening hours, security presence and maintained public areas around the site.

The trade-offs

**Footfall and noise.** Shops and restaurants draw visitors, deliveries and, in some cases, late-night activity. Units near the commercial podium, loading bays or a food court may experience more of it than units higher up or on the far side.

**Privacy and access.** Well-designed developments keep residential lobbies, lifts and drop-offs separate from commercial ones, with access cards for the residential side. It is worth checking how the two are separated before you buy.

**Shared costs and decisions.** When homes and shops sit in one strata development, the management corporation covers both, and share values decide how costs and votes are split. Some developments create subsidiary management arrangements so that residential and commercial owners each look after their own areas. Where the commercial part is held by a single owner, such as a fund or the developer, that owner may hold a large block of share value.

**Use rules.** By-laws may limit trades that can operate in the commercial units, set hours for deliveries and restrict use of facilities. Residents usually have exclusive use of the pool and clubhouse, but the details vary.

Questions to ask before buying

1. Which entrances, lifts and car-park levels are shared with the commercial side, and which are for residents only? 2. Where are the loading bay, refuse area and any food outlets in relation to the unit you are considering? 3. Is the commercial part strata-titled and sold to individual owners, or held by one owner? 4. How are maintenance costs and voting split between residential and commercial owners? 5. What do the by-laws say about trade uses and opening hours?

The answers are usually in the sale documents and the developer's site plan. The strata ownership post explains share value and the management corporation in more detail.

Resale and letting

Convenience tends to appeal to tenants as well as owner-occupiers, particularly where a development sits on a transport node. Units with good access to the shops but away from the busiest commercial frontage often suit both groups.

On the other hand, buyers who prize calm may discount units close to the commercial podium, loading bays or food outlets. When you look at a mixed development, consider who is likely to buy or rent your unit later, and how its position relative to the commercial side will look to them.

The commercial element also changes over time. Tenants in the shops come and go, and a well-run mall or row of shops can add life to the area for years. A struggling one can leave empty frontage, so the strength of the commercial operator and the location's footfall deserve a look too.

Weighing it up

For buyers who value a short walk to shops and transport, a mixed development can be worth some extra activity around the building. For those who prefer quiet, a stack facing away from the commercial podium, or a purely residential estate, may suit better. Either way, the project directory lets you compare sites by district and stage, and the home loan and TDSR calculator helps you set a budget before you visit.

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