Boutique properties can rival larger projects in growth

Median prices at Residences @ Jansen nearly doubled to $1,233 psf.

Some buyers often prefer larger developments, believing they offer better price appreciation and lower maintenance fees compared to boutique ones.

Huttons, however, debunked this, stating that higher maintenance fees in boutique developments are "not necessarily true" and that such developments can do "equally well in terms of price appreciation."

In a report, Huttons said maintenance fees for a 3-bedroom unit in the 170-unit The Verandah Residences is around $400 per month, similar to a 3-bedroom unit in the 35-unit Ardor Residence.

"Both projects have similar facilities such as a function room, BBQ pavilions, swimming pool and the gym," Huttons added.

Proving that boutique projects can do equally well in price appreciation, Huttons said median prices at the 18-unit Residences @ Jansen almost doubled to $1,233 psf or a CAGR of 4.03% over 17 years.

Malvern Springs, a 75-unit boutique project in District 15, also disproves the notion, with median prices more than doubling to $1,858 psf, achieving a compound annual growth rate (CAGR) of 5.25% over 21 years.

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Huttons also refuted the claim that boutique developments fare poorly in terms of rental income.

Comparing the 45-unit The View and 372-unit The Seafront, Huttons said 3-bedroom units at the former fetched an average monthly rent
of $7,833 in 2023, whilst the latter had an average rent of $7,411 per month.

Both projects are in Meyer and around the same age.

"Most units in boutique projects are owner-occupied, meaning less competition for tenants. As the construction period for boutique projects is shorter,  investors can realise their investment returns earlier," huttons added.