EC demand going to stay confident

Executive condo properties (ECs), a cross of private and public housing, have been swept up from the resurgent property industry.

Demand for ECs ended up being brisk inside the second quarter as developers shifted 954 brand-new units though no fresh project was released.

And that had been before 100 Palms Houses in Hougang distributed all 531 models in just several hours upon July 25 – meaning bumper third- 1 / 4 figures can also be likely.

In the second 1 / 4, home buyers picked up the devices from previous launches, working down the unsold uncompleted EC inventory to the minimum in more than four years at 2,742 products, as at June 30.

Figures from the Urban Restoration Authority (URA) recently showed that you use 2,026 brand-new ECs were purchased from the first half the year, a substantial increase regarding 8.5 per cent within the 1,867 transferred a year earlier.

Analysts told The Straits Times that EC buying interest will remain buoyant amid limited supply of these kinds of units, more affordable prices along with improving industry sentiment.

ECs are usually priced 20 or 30 per cent lower than a comparable non-public condo as well as, hence, is the more economical selection for the middle-income young families.

However, need for ECs is not even across the board. Looking at the sales of varied projects, this indicates demand for ECs inside the northern place is not as robust as compared to other regions.

Another EC project introduced this year – the 497-unit iNz Dwelling in Choa Chu Kang, which launched to be found in March – still had 233 unsold units at the conclusion of June.

The success of Hundred Hands is not only due to the insufficient upcoming supply of ECs, but it is also attributed to its location, that is within a older HDB estate and there is a lack of levels of competition of ECs.

New EC supply is anticpated to be limited with simply one site offered underneath the government property sales plan for this 1 / 2 of the year, inside Sumang Walk — yielding approximately 815 units.

Another factor that could help EC demand may be the little altered resale costs of HDB houses, which will restrict the amount upgraders can pay for their following home.

Using HDB resale rates staying level and prices of recent condos possibly inching up, HDB upgraders may unlikely pocket enough to cover $1.5 million or more for any condo. They might look at ECs, which are more affordable.