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Thursday 25 April 2013

Cluster Housing or landed property? How do they compare?

It's been a while since I last posted anything. This is mainly due to work and working with cluster housing.

As I have been serving clients looking to buy alternative types of property; mainly landed property and cluster houses, I decided to examine both types and point out the advantages vs disadvantages.

One of the most frequently asked questions from talking to people is that they do not know what are cluster houses?
In short, it is often described as basically individual condo units built on land.
There are 99 years leasehold cluster houses and freehold cluster houses.
Nevertheless, it is sort of like a hybrid. Having a pseudo 'landed' property with shared facilities.

Some recent launches and upcoming launches that are often talked about are:
Whitley Residences,  Palms @ 6th Avenue, Charlton 27 and Belgravia Villas.

I will not do a comparison on which is better but instead talk about cluster houses vs landed property.

Advantages of cluster houses

1) Guaranteed 2 parking lots.
Most intermediate, inter-terrace houses can only accommodate 1 car in the car porch and the other car would need to be parked along the street outside the compound.
Many landed property owners 'chope' the space outside their compound for another vehicle using dustbins, traffic cones etc.
You are most certainly to get 2 full sized carpark lots within your compound.

2) Shared facilities
Most cluster house developments would at least come with a swimming pool, a gym and BBQ pits.
It is nearly impossible to conceive having your own swimming pool and gym in a landed property unless the land size is very big.

3) Security
This is definitely a selling point for cluster houses as you get 24hrs security all the time. For landed properties, you would need to install your own alarm system or pay a fair bit more to link up with private security firms.

4) Open communal space
You'll usually have a fair bit of open space for you to walk or let children roam about within the compound under security. However, most landed properties have limited open space.

5) Bedrooms with attached en-suite bathrooms
Most cluster houses tend to have at least 4 to 5 spacious bedrooms with attached bathrooms. You usually do not get that in older landed properties.

6) Home Lift
As more cluster houses are built with multiple storeys, they usually come with a private home lift. A lot of landed properties do not have a private home lift and it is usually tougher for elderly people to climb up and down the stairs.

7) Consistent Facade
It is very nice to see a development with a consistent facade rather than driving into a street with landed properties looking totally different with various height differences.
Personally, I think this would actually affect the valuations in that street.
I know of people who intentionally move from such areas into cluster houses as they like the consistent facade which they know would not be changed by the owners over time.

8) Affordable Maintenance charges
The monthly maintenance charges paid for the upkeep of the development and the facilities appear to be of more value than landed properties. A lot of landed property owners always insists that there isn't much maintenance expenditure required but upon further investigation, this is not true.
For landed properties, a typical owner will need to take care of roofing, external painting, gardening, pest control, rodent control and security charges and if the charges are averaged out into monthly payments, it may come up to about the same as cluster houses.
However, there is no swimming pool, gym and other facilities to be enjoyed.

Disadvantages of cluster houses 

1) Entrance is via basement
A lot of people do not like entering via the basement as opposed to a traditional landed property where you enter the compound at ground level.

2) Narrow width
Most cluster houses are narrower than landed properties.

3) Lack of front porch / garden
It really depends on the design of a particular development.

4) Lack of privacy
Most cluster houses appear to be built quite close to the opposite unit and prospective buyers tend to point out that there are privacy issues. If you look closely to the designs, some developments offer privacy screens or reflective windows, making it hard to see into a unit.
Some landed property areas are serviced by a single lane 1 way street. The distance is no different from cluster houses.

The above is a general summary of the pros and cons of cluster houses vs landed properties.

Feel free to contact me @ 9489-3594 or write an email to me if you are looking for one or want a more in depth discussion on a particular property.



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