Despite the substantial quantity of unsold inventory in the executive condominium (EC) market, the numbers have been decreasing as more units sold in the last quarter, developers are picking up on the changing market sentiments and have come out in full force at the most recent land sales tender for an EC site on Anchorvale Lane. There were 16 bids in total for the site which could potentially yield 630 units.
As the private property market continues to show price improvements, the EC market has followed suit. Executive condominiums are a hybrid between public and private properties and more often than not, offer an almost surefire appreciation in its value after 10 years when it transits from the former to the latter. It’s initial step into the market as public housing means buyers can utilise HDB grant and subsidies to shave off part of the selling prices.
There are a number of ECs in the vicinity of this Anchorvale Lane site, namely The Vales, Bellewaters and Treasure Chest. The last sold 72 units within a week of its launch in July. However developers must be positive about the outlook of the EC market. Admittedly, the situation may change in a few years’ time and as the estate matures and becomes more popular with young families, there may also be an eventual shift in demand.
The highest bid of $240.95 million came from Hoi Hup Realty and Sunway Developments. With this $355 psf purchase price, property analysts are expecting the developers to price their units at $820 psf and above, which is a sliver higher than other EC projects.