The market may be turning around for the executive condominium sector.
2017 the year most number of EC units sold in 4 years
Consumers’ response to the increase in EC units sold seems to mirror the current positive atmosphere in the real estate industry. A total of 14,707 EC units were sold last year. That is 23% more than the 11,971 units sold in 2016.
This year, there is currently only 1 new EC project in the pipeline – Rivercove Residences.
The hybrid nature of ECs is a point of attraction for those looking to move into the private sector in the future. Executive condominiums are considered public housing but after a 10-year period, they become private properties. Thus, these unique housing type also comes with facilities such as swimming pools and private communal spaces.
While applicants are subjected to the rules of public housing, they are also able to enjoy the subsidies that come along with the scheme.
The fact that ECs are not available to foreigners in the initial phases also keeps the buying pool niche. Originally set aside to cater to the ‘sandwich-class’ of citizens who are able to afford more than a HDB flat but may not yet be able to afford a private property, the pricing of these properties are a particularly sensitive issue. These projects are developed by private developers yet subsidies are available to those who are eligible to purchase these units.
Developer sales expected to dominate 2018 sales figures
In the private non-landed market, however, 25 projects will potentially yield 16,000 new units. Property analysts are expecting higher sales volume this year on the back of successful land sales. New launches from these closed en blocs and government land sales sites will rev up buyers’ interest and appetites.
The first new private property launch buyers can look forward to this year is CDL’s New Futura condominium on Leonie Hill. It will be launched on January 18 with prices starting from $3.8 million for a 2-bedder.