PRICES of executive condominiums (ECs) in Singapore are on the rise given their limited supply and growing popularity among young families and public housing upgraders, a market report by Singapore Realtors Inc (SRI) found.
Published on Thursday (Nov 7), the report showed that the average price of newly launched ECs was S$1,460 per square foot (psf) for the first nine months of this year – up 24.1 per cent from 2021’s S$1,176 psf.
Slightly more than half of these newly launched ECs were transacted at more than S$1,500 psf this year. An almost equal amount at around 20 per cent were sold at S$1,300 psf to S$1,400 psf, and S$1,400 psf to S$1,500 psf. The remaining 8.8 per cent of ECs changed hands at less than S$1,300 psf.
The priciest transaction was for a 925.7 square foot unit at Parc Central Residences in Tampines, which was sold for S$1.6 million or S$1,680 psf in March. That was the highest price for a new EC unit, on a psf basis, to date, said SRI head of research and data analytics Mohan Sandrasegeran.
These reflect a growing willingness among EC buyers to invest at these price points, driven by the perceived value and strategic location of these projects, noted Sandrasegeran.
“Buyers are increasingly prioritising strategic positioning, lifestyle amenities, and the unique attributes of ECs, which offer a hybrid between public and private housing,” he said. “These factors contribute to the sustained attractiveness of ECs, even in an environment where price levels are on the rise.”
It also illustrates buyers’ confidence in the long-term value appreciation potential of ECs, he added.
This, he said, is thanks to government regulations specifying that developers can begin selling EC units only 15 months after the site is awarded, or upon the physical completion of foundation works, whichever comes first. “By carefully controlling EC availability, the authorities foster steady price growth, preserving ECs’ long-term value and viability within Singapore’s residential landscape,” he added.
Meanwhile, the price gap between new and resale ECs has narrowed in recent quarters.
In the latest Q3, the price gap between new and resale flats was just S$97 psf or 6.9 per cent. In comparison, that of Q2 was S$109 psf or 7.7 per cent, and S$214 psf or 14.4 per cent in Q1.
Sandrasegeran attributed the narrowing price gap to a limited “active supply” of new ECs, as well as the five-year minimum occupation period for homebuyers, and the 10-year period for a development to attain privatised status.
On the resale front, demand for ECs aged 10 years or more rose by 63.8 per cent year on year to 375 units in the first nine months of 2024. Sales volume of ECs aged 10 years or less saw a more “modest growth” of 1.8 per cent to 1,181 units.
The average price of older ECs consequently rose by 15.5 per cent to S$1,171 psf in the first nine months of this year, while that of ECs aged 10 years or less grew 5.7 per cent year on year to S$1,350 psf.
Sandrasegeran said buyers were likely drawn to mature ECs that had already privatised.
These flats could also have “strategic locations within well-established neighbourhoods” that offer a balanced mix of amenities and convenient transportation options, he said.
Overall, he reckoned that ECs will continue to serve as a unique asset class, attracting aspiring homeowners given the relative affordability, exclusivity and potential for capital appreciation.
New EC projects, such as Novo Place in Tengah, are likely to see strong enthusiasm from potential buyers, similar to recent EC projects, he said. For instance, Lumina Grand in Bukit Batok, which launched in Q1, has already sold 426, or 83.2 per cent, of its 512 units at a median price of S$1,524 psf.
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