by Joanne Chan

Updated 11:20 AM Jan 14, 2011

SINGAPORE - Executive condominiums continue to see strong demand from home buyers who have been shut out of the public housing market until recently.

Austville Residences in Sengkang, the latest development for sale and the fourth EC to have been launched after a five-year hiatus, had a queue of some 150 home buyers and their families forming even before doors opened for booking yesterday morning.

One reason: A first-come-first-served system to allocate the 540 units, unlike the previous three ECs, which used balloting.

Early birds arrived on Wednesday and waited overnight to get a shot at choice units. Some came prepared with mats and chairs, others simply stood in line. By 9am, the line had snaked past the showroom.

The first couple in line, who declined to be interviewed, said they arrived at 3pm on Wednesday.

Mr Levan Heng, who arrived three hours later and was seventh in line, said he was attracted to Austville because his parents and in-laws live nearby.

"I've already applied for a Build-To-Order flat and I've in fact paid some money - like $2,000. But I was thinking I might even forfeit that to get this," he said.

Property developer United Engineers said it decided on a first-come-first-served system because balloting left too much to chance for genuine buyers. It declined to disclose first-day sales numbers.

Project director Chua Kien Pin said: "We have keen buyers who have aspirations for, maybe, a unit on a high storey or good spacing. They're not really well taken care of in a balloting system. In a queue system, buyers can come early and get what they want."

Market watchers were not surprised by the queue for Austville, whose units are priced at $680 per sq ft on average.

Dennis Wee Group director Chris Koh said: "There's quite a group of people who can't afford private property, but then their salary is above $8,000, so they can't buy Housing and Development Board flats either."

He added that Austville has good attributes, such as proximity to the Light Rail Transit and a shopping centre.

With ECs available to households with a maximum income of $10,000, Mr Koh said: "You can say it's a long route to owning a private property. If you aspire to own a private property today but can't afford one, perhaps choose an EC and, in the years to come, when it gets privatised, you benefit."

Since ECs were relaunched, sales have been good. Esparina, which was launched in October, has seen a 92-per-cent take-up rate for its 573 units.

For the Canopy, rolled out in the same month, this figure stands at almost 60 per cent, while Prive in Punggol, which was launched last month, has reached its 75-per-cent mark.

Three EC sites in Choa Chu Kang, Tampines and Punggol will be up for tender in the first half of this year under the Government's Land Sale Programme.

Source: www.todayonline.com

Next 9 months could see slew of mid-tier and high-end projects in market

Published September 22, 2010
By UMA SHANKARI


(SINGAPORE) Developers here plan to launch another 34 residential developments with more than 8,800 units by June 2011, data compiled by Knight Frank shows.


Most of the new projects rolled out will be mid-tier and high-end developments. Knight Frank's list shows that 21 out of the 34 possible launches are located in the upmarket districts of 1, 2, 4, 9, 10 and 11.

Developers BT spoke to trust that the latest round of government measures to dampen demand for private homes and HDB flats announced on Aug 30 will impact mostly mass market homebuyers.

They are hopeful that new launches, which are mostly for homes in the mid-tier, high-end and luxury segments, will see healthy take-ups.

'I believe that the hardest hit projects will be the mass market ones,' said EL Development managing director Lim Yew Soon. 'For the mid to high-end projects, the impact will be somewhat lesser.'

The large number of upcoming mid-tier and high-end developments is not a reaction to the latest round of property measures, developers and analysts said. Rather, having pushed out numerous projects targeted at upgraders, many property groups are left with pending mid-tier and high-end project launches.

CB Richard Ellis executive director Joseph Tan said that many developers who bought mass market sites launched them within nine-12 months, with some even pushing out their projects in six-seven months to ride on the exuberant upgrader market.

'The fourth quarter will see more of the mid to high-end launches,' Mr Tan said.

Added one developer: 'Most developers rushed to launch mass market projects last year when that segment of the market was very hot, so there are mostly mid-tier and high-end projects that are waiting to be launched now anyway.'

But, many developers did not want to commit to a firm launch date - even though in some cases, showflats are ready and brochures have been printed.

CapitaLand recently said that it will go ahead with the launch of its new 1,715-unit condominium on the former Farrer Court site in Farrer Road by the end of this year.

The chief executive of the group's Singapore residential arm, Wong Heang Fine, said that while the new government measures have created some 'flux' in the market, things should 'settle in a couple of months'.

The launch of the Farrer Road project will be closely watched as it is the largest single residential development likely to be offered to homebuyers in the near future.

CapitaLand is likely to hedge its bets by rolling out the development in phases, similar to what City Developments and the Hong Leong Group did with their 642-unit NV Residences in Pasir Ris.

EL Development's Mr Lim also said that he intends to launch his 115-unit freehold project on the site of the former Diamond Tower in Jalan Rajah, in the Balestier area, in Q1 2011. But, despite the more bullish outlook for the mid-tier and high-end segments, several large suburban projects will be launched soon.

Esparina Residences, a 573-unit executive condominium (EC) project at Sengkang by Frasers Centrepoint and Lum Chang Building Contractors, will be launched next month.

Major private suburban launches in Q4 2010 include Hoi Hup Sunway Property's 473-unit Vacanza @ East at Lengkong Tujoh; Far East Organization's 214-unit The Lanai at Hillview Avenue; and Keppel Land's yet-unnamed residential development at Lakeside Drive, which will have more than 600 units.

On Aug 30, the government said that it will now disallow concurrent ownership of HDB flats and private residential properties within the specified minimum occupation period.

Other measures were aimed at potential buyers of second homes. Those with an existing mortgage can now borrow only up to 70 per cent of a property's value for a second home, down from 80 per cent previously. They must also pay 10 per cent in cash, up from 5 per cent.

Developers and analysts said then that the measures will hit prices and sales of private homes, but mostly in the mass market segment

Source: http://www.businesstimes.com.sg

05:55 AM Oct 15, 2010
by Png Poh Soon

The good response to the recent launch of Esparina Residences has triggered interest and aroused curiosity over executive condominiums (EC). A large turnout was seen on the first day of the launch, when 344 out of 573 available units were sold. More EC launches are expected in the coming months.

What are ECs and how do they compare with private condominiums? More importantly, do ECs make good property investments?

ECs were introduced in 1995 to meet the housing needs of the "sandwiched class" whose gross monthly household income exceeds $8,000 but is below $10,000. These home buyers do not qualify for new Housing and Development Board flats but may not be able to afford private properties. To date, there are 23 completed ECs accounting for 10,430 units.

Where design and facilities are concerned, ECs are comparable to private condominiums. However, unlike private properties, ECs owners are required to occupy their units for five years before they can sell them in the open market - and only to Singapore citizens or permanent residents. It is only after the 10th year that all restrictions are removed and the ECs can be sold to anyone, including foreigners and corporate entities. Effectively, ECs are equivalent to private properties from this point onwards.

Because of these restrictions, ECs are often priced at a discount from nearby private condominiums. The first batches of ECs in 1996 were sold at steep discounts compared to nearby condominiums. In some instances, the discount was as big as 60 per cent. Developers then were unsure of the market response as the EC launches coincided with soft market conditions after the introduction of anti-speculative measures. On average, the discount was between 35 and 40 per cent.

The gap narrowed to about 25 per cent for ECs that were launched in the early 2000s. This included Nuovo at Yio Chu Kang and Lilydale at Yishun Avenue 11, among others. Recent launches such as the Esparina Residences and The Canopy are priced at a narrower 10 per cent discount from nearby private properties. Invariably, the smaller price difference implies stronger developers' confidence and increased buyers' receptiveness towards ECs.

That said, how do ECs fare as a property investment? Knight Frank studied the price appreciation and price differences between ECs and private properties from 2004 to this year. Average sale transactions of ECs after the 5th year and the 10th year were included in the analyses. Sizes were controlled to reduce price distortions where smaller units commanded higher prices on a per-square-foot basis and vice versa. Prices of mass market non-landed properties were referenced to the Urban Redevelopment Authority's price index of non-landed properties outside the central region.

ECs appreciated by an average of 66 per cent over the six years while prices of mass market properties increased by 53 per cent. A majority of these ECs had crossed their 10th year mark and were no longer subject to any resale restrictions. Interestingly, the better performers were the older ECs that had deeper discounts and were catching up with their private counterparts from a lower base - resulting in higher price appreciation.

The price difference between ECs and private condominiums were also notably smaller after the 5th year and 10th year marks, with the average discount shrinking by some 20 per cent and 15 per cent, respectively. In some instances, the difference was less than 10 per cent at the 5th year.

Not surprisingly, location is an important factor affecting prices, with those nearer MRT stations and shopping centres performing better. In the case of Bishan Loft, the average transacted prices went above that of the nearby private properties, even though it had not reached the 10th year mark.

Looking ahead, as the Government releases more EC sites, what is important when purchasing ECs is to note the quantum of discount from surrounding private properties as well as the location. While ECs are subject to a minimum occupation period as well as a myriad of other restrictions, there is value waiting to be unlocked.


The writer is senior manager, consultancy and research, at Knight Frank.

Source: http://www.todayonline.com

05:55 AM Oct 15, 2010
by May Wong maywong@mediacorp.com.sg

SINGAPORE - Demand for executive condominiums (ECs) is expected to be sustained - at least for next year, with property watchers saying there is still interest from a sizeable group of sandwiched-class buyers who are priced out of private apartments.

The Esparina (picture), in Sengkang, is seeing strong response, with 370 units, or more than 60 per cent, of its 573 units sold since it was launched last Friday. The Canopy, in Yishun, the other EC launched last weekend, received about 240 applications by Oct 10 for its 406-unit project. Sales will begin on Saturday.

About three more ECs are expected to be launched within the next nine months in Sengkang and Punggol.

Mr Ong Teck Hui, executive director, Credo Real Estate, said: "The demand for ECs will be sustained. But as to how the individual projects will perform, this will depend on the individual attributes."

He added that the EC's "proximity to amenities, proximity to accessibility, LRT stations, MRT stations, individual attributes like views and so forth" would determine if the development would enjoy strong demand.

Analysts pointed out that prices of executive condominiums are about 10 to 20 per cent cheaper than private condominiums in a comparable location.

Property watchers expect a total of about 3,000 EC units to be sold within one year. There is a ready market of key buyers, with some 25,000 newly-weds, looking for their first homes, they said.

Prospective buyers, though, can afford to take their time to shop.

DMG and Partners investment analyst Brandon Lee said: "The take-up rate is going to be moderate - about 40 to 60 per cent in the first two weeks or so. That's because right now, buyers have a good problem at hand."

He believes that the fresh supply of ECs coming to the market and the recent softening of HDB prices may prompt first-time home buyers to take their time before deciding on their purchase.

"The government has pledged very strongly that they're going to come up with 4,000 EC units this year as well as next year. Secondly, I think their selection range has also widened, with the fact that the income ceiling for DBSS projects are going to be increased to $10,000. And thirdly, with the HDB resale prices coming off, first-time home buyers will have another avenue to look at buying their first homes," said Mr Lee.


Source: http://www.todayonline.com

Published October 9, 2010
By UMA SHANKARI

344 units sold in Esparina Residences EC

By UMA SHANKARI


A TOTAL of 344 units were sold in Frasers Centrepoint's 573-unit Sengkang executive condominium (EC), Esparina Residences, as of 6pm yesterday.


The developer had received 1,155 applicants for the project since it was launched on Sept 30. Eligible applicants with a ballot number had priority to enter the showflat for the balloting and booking of units yesterday.

But only 344 units were sold. Because of the balloting process, some potential buyers could have decided not to purchase a unit at all if their preferred unit had been sold. In particular, three-bedroom units, penthouses and dual-key units (which are units that can be divided into two separate apartments with different entrances) proved to be popular, Frasers Centrepoint said.

Prices at Esparina Residences range from $590,000 to $723,000 for a two-bedder; $697,000 to $981,000 for a three-bedder; and $1 million to $1.18 million for a four-bedroom unit. Penthouses are priced at between $864,000 and $1.3 million. On a per square foot (psf) basis, unit prices range from $730 to $750 psf on average.

Esparina Residences is the first EC project to be offered to homebuyers since end-2004.

ECs are a hybrid of public and private housing. New EC units are sold with eligibility, ownership and resale restrictions similar to those for public housing, but these restrictions cease to apply after 10 years.

Another EC project, MCC Land's 406-unit The Canopy in Yishun, previews this weekend. MCC Land has priced the units at an average of $600 to $700 psf. Unit sizes at the 99-year leasehold project range from 872 sq ft to 1,410 sq ft in two, three and four-bedroom configurations. There will also be 22 penthouses of between 2,088 and 2,239 sq ft

Source: http://www.businesstimes.com.sg

05:55 AM Oct 01, 2010

Frasers Centrepoint Homes is launching its Esparina Residences executive condominium project next Friday. The 99-year leasehold property in Compassvale Bow is a short walk from the Buangkok MRT Station. It consists of 573 units, ranging from 829 sq ft for a two-bedroom unit to 2,583 sq feet for a four-bedroom penthouse.

Prices range from $590,000 to $723,000 for a two-bedroom unit; $697,000 to $981,000 for a three-bedroom unit; and $1.005 million to $1.181 million for a four-bedroom unit. Prices for penthouses range from $864,000 to $1.3 million. The temporary occupancy permit is expected in the first quarter of 2014.

The showflat, located along Compassvale Bow, is open for public viewing from now to Oct 5 from 11am to 7pm. During this period, no booking or purchasing is allowed. On Oct 8, successful applicants will have priority to enter the showflat for balloting and booking


Source: http://www.todayonline.com

Published October 1, 2010


FRASERS Centrepoint's new 573-unit executive condominium (EC), , drew more than 300 visitors who took up 230 ballot numbers at the project's launch yesterday.


Apartment sizes at the Sengkang project range from 829 square feet for a two-bedroom flat to 2,583 sq ft for a four-bedroom penthouse. Prices range from $590,000 to $723,000 for a two-bedder; $697,000 to $981,000 for a three-bedder; and $1 million to $1.18 million for a four-bedroom unit. Penthouses are priced at between $864,000 and $1.3 million. Applications are open until Oct 5. Successful applicants will be issued a ballot number. On Oct 8, they will get priority to enter the showflat for the balloting and booking of units. Those without a ballot number will be admitted to the showflat only after all ballot numbers have been processed.

Frasers Centrepoint, which is the property arm of Fraser and Neave, said 71 units - or 12 per cent of all apartments - at Esparina Residences will be dual-key units. This means they can be divided into two separate apartments with different entrances. The design was conceptualised and introduced at Frasers Centrepoint's Caspian and 8@Woodleigh condominiums. More such units are available at Esparina Residences due to their past popularity, said Cheang Kok Kheong, chief executive of Frasers Centrepoint Homes. 'These dual-key units were snapped up very quickly in our previous launches,' he said.

There will also be seven thematic spas in the development. ECs are a hybrid of public and private housing. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing, but these restrictions cease to apply after 10 years.

Source: http://www.businesstimes.com.sg