What are Cluster Houses?

Pros & Cons of Cluster Housing

Cluster Houses as the name says are a cluster of landed properties grouped together to form a development. The landed properties may be in the form of Terrace, Semi-Detached or Detached Houses. Most Developments have a mixture of different type of landed properties while there are also some that have purely detached houses. Cluster houses shares a wide array of facilities, these may include playground, gym and communal pool.

One of the recent cluster housing development

Pros/Advantages of Cluster Houses:

1.      Allocation of Car park(s) lots: This may sound like a con instead of a pro, however it is to note that there are lots of landed property having issue with parking especially with those where theirs cars have to be parked outside of their house  on a one way round, an allocated parking would prove to be  a remedy

2.       Availability of common facilities: Cluster housing will prove to be a good investment for family with children, where they do not have to travel far away to use the swimming pool, gym or other facilities.

3.      Per Square foot (PSF) of cluster houses normally lower than the landed properties around the same: The lower quantum of the buying price will prove to be a good investment for good rental yield. Also as tenants especially expats will prefer to have facilities along with the rental space, cluster housing prove to be valued added with it facilities

4.      Enhanced Security: As the development is normally fenced up by a perimeter fence/wall with 24hrs security guard on duty, the need to place your own CCTV system with monthly monitoring fees is lesser unlike landed properties.

5.      Maintenance issue to be taken care of by Management: Landed properties have certain common issues such as leaking roof, roaches and termites issues, mosquito issues, crack in the wall and etc. All this may lead to costly one time expenditure and requires professional help if you own a landed properties, however in a cluster house, these are normally taken care of by the management

6.    Foeigners my be able to buy certain cluster houses: Subject to LDA approval.

Cons/Disadvantages of Cluster Houses:

1.      Restriction to Façade reconstruction: Owner are not allowed to alter the façade of the cluster house even if the development is free-hold

2.      Maintenance fee payable: there is a small sum payable for the management of facilities and securities

There are definitely pros and cons for everything that we do or have. Hope this article clarifies your doubts and aids you in the process of buying a House.