Executive condominiums top August property sales

August was a good month for the executive condominium (EC) market, with all 3 top sellers coming from this particular property sector, namely – Treasure Crest in Sengkang, Sol Acres in Choa Chu Kang and Bellewoods in Woodlands.

Bellewoods ECUnderstandably, there were not many major property launches in August with only 590 units launched in the month at Victoria Park Villas in District 10. A total of 805 units were sold, less than half of the 1,921 sold in July, with 41 per cent of the month’s sales coming from ECs. But demand for these rare hybrid public and private properties seems to be rising.

The price gap between ECs and private properties may be closing in as resale private property prices continue to dip though there is still a considerable distance between these 2 property types. The median selling prices of all 3 top EC developments below $800 psf whereas average prices for private apartments are mostly above the $1,000 psf range.

Sol Acres Besides comparison with ECs, new developer launches have also been fighting market competition from completed resale units, providing discounts and other incentive schemes to entice buyers. As a hybrid between public and private housing, EC buyers can tap on HDB grants and subsidies in the initial purchase and after 10 years, are able to leverage on the private property status of their property, harnessing the full capacity of a private resale condominium.

 

Property market’s road to recovery a gradual one

While the global economy remains in the doldrums and the authorities keep the local property cooling measures in place, Singapore’s real estate market is likely to see a gradual gentle road to recovery, starting with stabilisation.

LakeGrandeJuly’s sales figures show promise, with 1,091 units sold (excluding executive condominiums). That is almost double that of June’s 536 units. Although August’s numbers may dip due to the Hungry Ghost month and the lack of major property launches, September will see the launch of Parc Riveria at West Coast Vale and Forest Woods in Serangoon. The former is developed by EL Development and the latter by City Developments.

Consumer interest on landed homes, a rare commodity in local context, has also shone of late. CapitaLand‘s launch of 6 Victoria Park Villas‘ units which all sold between $4.3 to $4.9 million led the way to positive market sentiments. July’s major launch of the highly affordable units at Lake Grande largely boosted sales figures, accounting for 40 per cent of the total number of units sold.

VictoriaParkVillasProperty analysts are expecting monthly sales of 500 to 700 units for the rest of the year, totalling up to 8,000 units for 2016. Selling prices have remained steady in July while sales figures rose 22 per cent, signalling the start to the market’s road to recovery.

New executive condominiums still in demand

There has been an increase in the number of executive condominium (EC) units this year, as pent-up demand is satiated by new EC launches in the first half of the year.

Parc Life SembawangDespite the rise in supply, Fraser Centerpoint Limited’s (FCL) launch of Parc life has no doubt been met with renewed interest as more young married couples and families look to these private public housing hybrids as a potential start to their future investment. 

After a 5-year minimum-occupation-period (MOP), their values often appreciate considerably, and after a 10-year period, they are privatized and their values can rise further, especially if they are in popular districts or near schools or MRT stations. Situated in Sembawang just 5-minutes by foot from Sembawang  MRT station, bus-interchange and Sun Plaza and overlooking Canberra Park, Parc Life EC’s units start at $770 to $800 psf and feature condominium facilities such as an infinity pool, tennis courts, spas and even a pet grooming pavillion. 

All of the 628 units are spread out between 3 blocks and unit sizes range between 980 to 1,055 sq ft 3-bedders to 1,281 sq ft 4-bedders and 1,550 sq ft 5-bedders. The other EC in Sembawang which was launched recently is The Visionaire, and for looking at the response, the EC market looks set to continue its good run well into the year.

 

Treasure Chest EC holds treasures for buyers

Buyers flocked to the recent launch of the Treasure Chest executive condominium (EC) in Anchorvale Crescent, Sengkang. The gallery was swarmed with approximately 3,000 home seekers and with applications closing tomorrow, it is already 60 per cent oversubscribed by 6th July. About 48 per cent of the applicants were first-time HDB buyers while HDB upgraders made up the rest. A total of 800 applicants have thus far applied for the 504 available units.

Treasure Chest ECThe 99-year leasehold Treasure Chest EC, developed by Sim Lian, was launched on Friday, 1 July with units going at the average of $735 to $755 psf. There are a total of 535 units over eight 15-storey blocks, with apartment sizes ranging from 3-bedders to premium 3-bedders and 4-bedroom units as well. Temporary occupation of the well-situated EC is targeted for 2019, a plausible time for young couples and families with young children hoping to live near schools of their choice.

The units are fairly spacious, with premium 3-bedroom units ranging from 1, 075 sq ft to 1,249 sq ft being the most popular with buyers. The smaller 3-bedders are sized at around 958 sq ft. Developers chalk the overwhelming response up to the affordable quantum pricing scheme coupled with a good location. Treasure Chest EC is situated near the Sengkang MRT station and bus interchange.

Some of the other ECs recently launched include Wandervale in Choa Chu Kang, The Visionaire and Parc Life in Sembawang and Northwave in Woodlands.

 

 

 

Would you Woodlands?

Woodlands – This may have once been a forested area but now many call it home. Including the estates of Marsiling and Admiralty, Woodlands has HDB flats, executive condominiums (ECs) and private condominiums in its midst, not to mention a bustling regional commercial hub.

BellewoodsECSome of the condominiums standing in the district include La Casa, Woodsvale, Northoaks, The Tennery and Woodhaven. If it’s an EC you are looking for, the estate also has Bellewoods, Forestville, Twin Fountains and soon, Northwave to offer.

Under the URA Masterplan, a new Woodlands Regional Centre will feature easy and convenient links to Malaysia and also more than 700,000 sq metre of commercial spaces. New industrial spaces will also mean more jobs for the residents of Woodlands and could also translate to higher demand for rental and sale properties. The Woodlands North Coast is also in the works, aiming to bring greenery and waterfront living to the region.

woodlandsNCPhoto credit: URA

Bellewoods, an award-winning EC on Woodlands Ave 5, is one such project. It aims to bring the tranquility of green-living into the residence, with modern-day conveniences such as the woodlands MRT station and Causeway point shopping centre just next door. Developed by Qingjian Realty, Bellewoods is slated for completion next year and as it was launched before the resale levy rule was set, buyers are able to save up to $55,000 for an EC unit.

More unsold private home stock moved in April

New private home sales fell 11.6 per cent to 745 units last month, though the numbers may be considered to be decent as there were 2 major launches in March which caused a spike in sales volume, the highest in 8 months. The 268-unit The Cairnhill and 216-unit The Wisteria launched in March while the 305-unit Sturdee Residences and 48-unit The Asana launched in April.
The AsanaOlder projects however were finding favour with buyers as the number of transactions on previously launched developments rose from 541 to 619 in April. A few of these projects such as The Trilinq, have reached or will be reaching completion soon and are more of a draw for buyers who wish to move in sooner than later. Developers of some of these properties have also offered discounts and the lower prices are the icing on the cake.

Taking executive condominium (EC) units into consideration, the numbers are even higher. Approximately 400 EC units were sold. At the previously-launched The Terrace EC, the developers have put a buyer-referral scheme where both parties received $10,000 cash vouchers for successful transactions.

The TerraceProperty analysts are optimistic about the shift in tide as sales were spread evenly amongst the 15 top-selling residential projects, a sign that buyers are looking throughout the island, and not simply converging on new launches. Ironically, the government’s insistence on keeping the property cooling measures might have driven buyers back into the market as they realise the curbs may not be lifted anytime soon.

 

It’s an EC world

Executive condominiums are some of the hottest properties on the buying public’s radar this year. These rare hybrid private-public homes straddle the 2 markets in the best way possible. While they begin their journey as public housing, thus allowing qualifying buyers to make use of government subsidies and loans to secure a usually cheaper-yet-comparable alternative to private condominium units, they graduate after 10 years to the private property market and their values more often that not appreciate considerably.

WandervaleECOne of the first ECs to be launched this year include Wandervale and The Visionaire. The Parc Life will soon be launched. Even though the nearby 1-327-unit Sol Acres EC might have been competing for buyers , 320 out of the 534-unit Wandervale EC in Choa Chu Kang has been sold.  Most of the units popular with HDB ugpraders and young families were the 4-bedders. 82 were sold in total. Prices averaged at $755 psf with a 3-bedroom apartment starting at $655,000 and the larger 4-bedders going for more than $896,000.  The Wandervale’s proximity to the Choa Chu Kang MRT station could have added to its popularity.

Besides The Parc Life, other EC launches in the works include Treasure Crest in Sengkang, Northwave in Woodlands and another in Choa Chu Kang.

Property market showing signs of awakening

Sturdee-ResidenceAlthough property prices have been falling, the show of interest from the buying public has never really waned, instead they are now simply more aware of their options and have become more selective in their investments.

Signs that the market lull might be broken soon have come from the positive take-up of units in 2 recent launches at The Visionaire Executive Condominium (EC) and The Sturdee Residences. 158 units were sold the 632-unit The Visionaire EC at a median price of $811 psf while prices averaged at $1,550 psf at the 305-unit The Sturdee Residences. Buyers at the private residential project have gone mainly for the smaller one- and two-bedders though 3 of its 8 penthouses have already found new owners. Two of the 1,830 sq ft penthouse units were sold at $3.2 million each.

Gem REsidencesThe Parc Life EC and private residential project Gem Residences will launch this weekend. Private condominium Stars of Kovan is expected to launch next month. The latter is a mixed-use development consisting of 390 residential units, 5 strata terraces and 46 shops. Prices are expected to range between $1,550 to $1,600 psf. E-applications for Parc Life have already exceeded the 660 units available and there is hope that uptake will be on the uptick at both these projects.