Demand for executive condos to remain robust

By EdgeProp | January 19, 2019 7:00 AM SGT
The 628-unit Rivercove Residences was launched last July and saw 80% of the units snapped up at an average of $965 psf (Credit: Huttons Asia)
Only three new executive condo (EC) units were sold in December 2018: One unit at Rivercove Residences in Sengkang was sold at $964 psf; while two units at Northwave in Woodlands were sold at a median price of $908 psf.
According to Ong Teck Hui, JLL senior director of research & consultancy, 628 new ECs were launched and 1,137 units sold in 2018 as a whole. The supply and demand imbalance resulted in the median prices of new ECs shooting up by 24.7% from $793 psf in 4Q2017 to $989 psf in 4Q2018.
The demand for executive condos (ECs) is expected to remain robust in 2019, says Nicholas Mak, executive director of ZACD Group. However, the supply of new EC launches will continue to be limited. While the number of EC units launched decreased significantly by 59.6% y-o-y in 2018, the number of units sold dropped correspondingly by 72% over the same period, he notes.
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The sales of new EC units will increase when the next EC project at Punggol is launched sometime in 2Q2019, says Mak. The EC project by City Developments Ltd is estimated to have 820 units and is located at Sumang Walk. “If priced reasonably, the take-up rate of this project is expected to be very high,” he adds.
The 628-unit Rivercove Residences EC project was launched in July last year, and saw 80% of the units snapped up on the first weekend at an average of $965 psf.