The positive sentiments in the real estate market has proven to be rather infectious, with a trickle-down effect seen in the executive condominiums (EC) segment as well.
And this is not only because of the recent 1-day sellout of 531 units at Hougang’s Hundred Palms Residences EC. Without doubt, the figures in Q3 will likely be looking up because of this massive sale, but Q2 figures has already shown that developers have sold 954 EC units despite not having fresh launches. Buyers have come back into the fold and interest in units from previous EC launches have picked up. The unsold-uncompleted EC inventory is currently at its lowest at 2,742 units.
While HDB resale prices are are somewhat of a stalemate, analysts are expecting HDB upgraders to be looking at the EC market intensively, in particular if they are yet able to afford private condominiums despite the decline. Most ECs are priced 20% to 30% lower than similar private condominium units.
The limited number of EC units – there is only 1 EC site offered under the government land sales (GLS) programme for H2 – could also push buyers to pick up existing units. Competition from other ECs in the vicinity and the location of the development are also to be factored into the saleability of upcoming EC launches. One of the other ECs launched this year was iNz Residences in Choa Chu Kang.