18/05/2019
EXECUTIVE CONDOS STILL GOOD VALUE -The next EC launch - in Sumang Walk - is expected to be later this year. Due to the low supply, EC prices have steadily increased.
STRONG DEMAND- The past few EC launches have been exceptionally well received. Hundred Palms Residences, launched in 2017, sold out all 531 of its units within a day. Rivercove Residences, launched last year, was reportedly more than 2.5 times oversubscribed and was sold out before the end of 2018.
EC buyers have an immediate price advantage over private condominium buyers as they are buying a product that has a similar look and feel of a mass market condominium, but at a cheaper price since ECs come with full condominium facilities and have the same level of privacy and finishes one would typically expect in a private condominium.
After factoring in the five- and 10-year resale restrictions, and depending on the state of the market at the relevant point in time, ECs could have more potential for capital gain than private condominiums.
Some buyers also prefer ECs because of the living environment. Because of the eligibility criteria, ECs are targeted solely at owner occupiers, and mainly comprise three and four bedroom units.
This is in contrast to private condominiums which usually cater to investors by having one bedroom and two bedroom units. Hence, in an EC environment, the majority of the residents are likely to be local families whereas in a private condominium, it is likely to be quite diverse.
STILL VALUE BUYS
The upcoming EC developments, while expected to be priced higher, are still excellent value, especially taking into consideration their potential for growth. The Sumang Walk and Anchorvale Crescent sites will benefit from the Punggol Digital District, a key growth cluster in the North East Region envisioned to create up to 28,000 new jobs.
ECs are undeniably still a value proposition today and a great option for eligible purchasers.
Source: Business Times 21 March 2019 Executive Condominiums Still Good Value
