The full article can be found in The Straits Times, Business Section, Page C2, 26 July 2018. Exclusively written by SLP Research & Consultancy Dept.
HDB announced on 25 July 2018, that the Executive Condominium (EC) site at Anchorvale Crescent to be launched for tender within the next three weeks with a minimum price of $255,000,000 or $460.80 psf ppr.
The EC site has a land area of 17,137 sqm (184,461 sqft) and can yield a maximum Gross Floor Area (GFA) of 51,411 sqm (553,383 sqft). This development site could be developed into maximum 550 housing units, with a maximum building height of 64m AMSL.
This Reserve List site was made available for application only about a month ago on 28 June 2018. A real estate developer has successfully applied to the government have it launched for sale by tender while it is still fresh on the shelf. This could indicate that some developers think that in light of the latest property cooling measures announced by the government on 5 July, the EC primary market will still enjoy strong demand from homebuyers.
One of the contributing factors for the developers’ confidence is that buyers of new EC units are not allowed to own any other residential properties. Therefore, these EC buyers will not be subjected to the Additional Buyer’s Stamp Duty (ABSD), which will make them less affected by the cooling measures.
Furthermore, due to the strong buying demand and shortage of EC in the past year, an EC development project may be considered to be a “safer bet” than private housing project among some developers.
The following are some of the positive attributes of this site:
- Close proximity to the Cheng Lim LRT Station, Sengkang MRT station
- Close proximity to amenities such as Sengkang General Hospital, Sengkang Community Hospital, Sengkang Community Club
Top 5 best selling EC projects in June 2018
|Project Name||Street Name||Total Number of Units in Project||Cumulative Units Sold to-date||Total Number of Unsold Units||Median Price ($psf) # in the Month|
|RIVERCOVE RESIDENCES||ANCHORVALE LANE||628||627||1||$1000|
|THE VALES||ANCHORVALE CRESCENT||517||516||1||$920|
|SOL ACRES||CHOA CHU KANG GROVE||1327||1325||2||$894|
|PARC LIFE||SEMBAWANG CRESCENT||628||608||20||$884|
Source: URA, ZACD Research
In the table above, most of the launched EC projects in the market has less 20 unsold units left in each project, which illustrated the shortage of new EC units available for sale to homebuyers.
Due to the limited supply of EC sites and the recent brisk sales at the latest EC launch, Rivercove Residences, this tender could draw strong interest from many developers, leading to more than 10 bids.