EC News | Executive Condo News

Strong interest from buyers indicates that executive condominiums (ECs) are back in vogue in spite of the limp property market.

Developers sold 546 EC units in April, up from the 485 units moved in March and the 126 transacted in April last year, according to the Urban Redevelopment Authority.

Average EC prices rose by 5.4 per cent from 2013 to hit $794 per sq ft in 2014 and added a further 0.3 per cent to reach $797 psf last year – a sign of growing demand, noted Ms Alice Tan, Knight Frank Singapore head of consultancy and research.

Consultants agree that ECs, which are privatised after 10 years, continue to attract buyers as these public-private hybrid homes offer facilities similar to those in condominiums but at a lower price.

Here is a quick guide to buying an EC.

CHECK FOR ELIGIBILITY

A key step is to check for eligibility and obtain approval from the Housing Board.

Prospective buyers cannot have an average gross monthly household income exceeding $14,000 – a ceiling that was raised by the Government last August to make ECs more accessible to a wider pool of people.

They should be first-time flat owners, or have bought only one property under HDB or received one CPF Housing Grant previously. They should not also own property overseas or locally, or have sold any in the past 30 months. Potential buyers should also check if they can get a mortgage.

“Having a comprehensive review of cash outlay in terms of mortgage payments and the impact from future rise in potential interest rates is also essential before deciding on the type of mortgage loan,” said Ms Tan.

VIEW THE PROPERTY, MAKE AN APPLICATION

There is a list of all ECs on sale as well as upcoming launches on HDB’s website. Check this, then make arrangements to view the project site and the showflat.

An application can then be lodged with the developer, which can offer units via computer balloting or walk-in selection, according to the HDB website.

MAKE PAYMENTS FOR THE EC

Successful applicants will be invited by the developer to book an EC and sign the Option to Purchase (OTP) form. They can also submit an application form for a CPF Housing Grant to the developer.

All buyers, including those paying in cash, also have to pay a 5 per cent option fee.

The applicant then has to sign a Sale and Purchase Agreement, which includes a Letter of Offer if a bank is providing a loan.

Applicants also have to pay 15 per cent of the purchase price along with 1 per cent to 3 per cent legal and stamp fees, using either CPF money or cash, within nine weeks from the date of the OTP or the signing of the Sale and Purchase Agreement.

COLLECT KEYS

Homebuyers can collect the keys when the EC is completed.

It is important to note that buyers must occupy the EC for five years before it can be sold on the open market.

LOCATION, LOCATION, LOCATION

Mr Ong Teck Hui, national director of research and consultancy at JLL, noted that ECs with good transportation connectivity tend to be in demand, as well as those near amenities such as schools, shopping facilities and other conveniences.

“However, pricing for such developments tend to be a bit stiffer, although they would be better long-term investments,” he said.

Mr Ong noted that possible EC launches for the rest of this year include Treasure Crest in Anchorvale Crescent, Northwave in Woodlands Avenue 12, and the parcel in Choa Chu Kang Avenue 5, which will likely offer 1,400 to 1,500 units.

It is also important to consider the experience of the developer, added Ms Tan. “ECs that are built by reputable developers with a good track record in quality construction could be a better bet in terms of ensuring sustainability and quality of an EC home.”

HOME OR INVESTMENT?

For genuine home-hunters, ECs can be a “worthwhile” buy, said Dr Lee Nai Jia, regional head of South-east Asia research at DTZ.

“They have the option of selling it five or 10 years later and, even if the price doesn’t go up much, they still gain from the various subsidies available for ECs,” he said, adding that most buyers, for instance, tend to make use of the CPF Housing Grant instead of paying cash.

Dr Lee added that those looking at ECs as a form of investment, however, should be aware of the various restrictions on subletting as well as the possible implications of higher interest rates.

Source: http://www.straitstimes.com/business/property/askst-buying-an-ec-subsidies-grants-make-it-a-good-choice?xtor=CS1-12&utm_source=Facebook&utm_medium=Link-ad&utm_campaign=askST&utm_content=buying-ec

Sim Lian Group has sold 362 units, or 72% of the 504 units available at Treasure Crest executive condominium in Sengkang over its launch weekend. The EC was 2.1 times oversubscribed at the end of its e-application period on July 10.

All 56 four-bedroom units, approximately 1,345 sq ft in size, have been fully sold.

Units at Treasure Crest were priced at an average of $742 psf, with prices starting from $677,000 or $707 psf for a three-bedroom unit and $735,000 or $683 psf for a three-bedroom premium unit.

First-timers account for over 60% of buyers, with the rest purchased by HDB upgraders. There are 12 remaining units available for purchase under the 30% quota set aside for second-time homebuyers, which will be lifted on August 16.

Buyers have a choice of a normal payment scheme or a deferred payment scheme. The project is due to be completed in 2019.

Separately, Qingjian Realty sold 43 units at Bellewaters EC in June, which is a stone’s throw away from Treasure Crest. According to market sources, the developer has offered a waiver of the premium payable under the deferred payment schemes. Bellewaters is also one of the few remaining projects in the area which do not attract a resale levy.

The take-up rate for Treasure Crest is the highest seen for EC projects since November 2014, when Lake Life in Jurong moved 98% of the 546 units available over its launch weekend. Other ECs that enjoyed strong sales at launch are Heron Bay, Citylife @ Tampines, Lush Acres and Twin Fountains.

Source: http://www.theedgeproperty.com.sg/content/buyers-snapped-362-units-treasure-crest-over-weekend

Two of the 5 best selling projects for June 2016 were executive condominiums. Bellewaters EC at Anchorvale Crescent sold 43 units in June, while The Vales EC, also located at the same area moved 28 units in June.

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Sim Lian Group has priced its Treasure Crest executive condominium (EC) project at $742 psf on average, with a three-bedroom unit starting from $649,000, or $677 psf.

The 504-unit development received 1,077 e-applications during the 10-day e-application period, making it 2.1 times oversubscribed.

Sim Lian attributed the high number of e-applications to the development’s lower prices, strategic location and layout of its units. Notably, the master bedroom of all units can accommodate a king-sized bed, while the other bedrooms can fit a queen-sized bed.

Set to obtain its TOP by 2019, the 99-year leasehold project comprises 84 three-bedroom units, 364 three-bedroom premium units and 56 four-bedroom units spread across eight residential blocks. Unit sizes range from 958 sq ft to 1,345 sq ft.

The bigger three-bedroom premium and four-bedroom units were the more popular choice amongst potential buyers.

First-timers, including those applying under the Fiancé/Fiancée Scheme, accounted for around 48 percent of the e-applicants, while the rest were HDB upgraders. Majority of the applicants currently live in the north-eastern part of Singapore, specifically Hougang, Sengkang and Punggol.

Treasure Crest is located in Sengkang New Town, near the Sengkang MRT station and bus interchange.

The balloting and sales booking exercise for the project will take place on 16 July.

Source: http://www.propertyguru.com.sg/property-management-news/2016/7/130298/treasure-crest-ec-prices-start-from-649000

ONLY 20-odd units at Northwave have been sold on the first day of sales, despite the 358-unit executive condominium (EC) project collecting 240 e-applications. This is a figure that has raised eyebrows among market watchers BT spoke with, who compared it with The Criterion and Parc Life – two projects which also suffered weak sales recently.

BT had earlier conducted a study of EC projects launched since 2014, which showed poor sales in many projects, contrary to the strong e-application numbers that developers claimed to have received. The study of 14 EC projects found that during the launch week, half of the projects fell short of a 20 per cent conversion rate (ie, the number of e-applicants who went on to buy a unit).

In terms of percentage of units sold over the first launch weekend, the worst performing projects were The Criterion (41 units out of 505 launched units sold) and Parc Life (51 units out of 628 launched units sold), both at 8 per cent. Northwave’s performance falls far below this threshold.

Market watchers attribute the lacklustre showing to a range of factors ranging from weak transport links to oversupply in the market.

Located at Woodlands Avenue 12, Northwave is near existing and new industrial clusters along Gambas Avenue. It is a 10-minute walk to Sembawang MRT Station – two stops away from Woodlands Regional Centre.

In the vicinity, and located much closer to a MRT station, are two completed ECs – NorthOaks and Woodsvale – that have reached the 10-year TOP mark. These two projects are not only located closer to Admiralty MRT station but developed by more established brand names, some market watchers suggested.

NorthOaks was developed by Hong Leong’s privately held property arm Hong Leong Holdings, while Woodsvale was developed by Pidemco Land which eventually merged with DBS Land to create CapitaLand.

Northwave is meanwhile Hao Yuan Investment’s fourth residential project in Singapore since the launch of The Nautical in 2012 and its third EC project after Forestville and Sea Horizon. They had, in 2012, been denied approval from the Urban Redevelopment Authority to sell units in Forestville. Despite being given instructions from Controller of Housing not to proceed with sales, the developer had gone ahead with the launch but issued a “no-sale instruction to agents”.

In the current buyers’ market, upgraders can afford to be choosy whether in the new EC market, resale EC market, or private condominium market, noted SLP International executive director Nicholas Mak.

In addition to NorthOaks and Woodsvale, there is a notable overhang of unsold stock in earlier launched EC projects in the North, namely Bellewoods, The Brownstone, Signature at Yishun and The Criterion.

Mr Mak said he expects the oversupply situation in the EC market to improve only a year to a year-and-a- half from now.

Century 21 Singapore’s chief executive Ku Swee Yong said it might be time to review the relevance of the EC scheme. He estimates there may be some 3,000 to 4,000 launched but unsold EC units in Singapore, and said the lacklustre performance is an “obvious indicator that we have flooded the market with too much”.

“In fact, increasing household income to S$12,000 for HDB BTO purchases has cannibalised the number of eligible buyers,” he said. “The authorities really should review the need for an EC scheme.”

Source: http://www.businesstimes.com.sg/real-estate/northwave-ec-posts-dismal-first-day-sales-of-about-20-units

Sim Lian Group has received 800 e-applications for its 504-unit Treasure Crest executive condominium (EC) project, making the development around 60 percent oversubscribed as of Thursday afternoon.

A total of 3,000 people have visited the Treasure Crest sales gallery since e-applications started on 1 July. The application period will close on 10 July, while bookings take place on 16 July.

The 99-year leasehold development comprises 84 three-bedroom units, 364 three-bedroom premium units and 56 four-bedroom units spread across eight residential blocks.

With unit prices ranging between $735 and $755 psf on average, larger units, specifically the three-bedroom premium and four bedroom units, emerged as the more popular options among potential buyers.

Around 48 percent of the e-applicants are first-time buyers, while the rest are HDB upgraders.

Sim Lian noted that majority of the applicants currently live in the north-eastern part of Singapore, namely Punggol, Sengkang and Hougang.

“We are heartened by the overwhelming response thus far,” said Sim Lian Group Executive Director Kuik Sing Beng.

Measuring approximately 187,831 sq ft, the EC site in Sengkang New Town is located close to the Sengkang MRT station and bus interchange. The project is set to obtain its TOP by 2019.

Source: http://www.propertyguru.com.sg/property-management-news/2016/7/129997/treasure-crest-ec-60-oversubscribed

HDB has released executive condo (EC) site at Anchorvale Lane for sale by public tender. It is the only EC site on the confirmed list for the Government Land Sales (GLS) programme this year.

The 226,199 sq ft plot can potentially yield about 635 residential units and has a 99-year lease period.

The site beside Punggol Reservoir is very likely to be the only EC land parcel offered for sale in 2016, according to Nicholas Mak, executive director and head of research and consultancy at SLP International. “In view of the existing steady supply of EC projects to be launched in the coming months, and the absence of any attractively located EC sites on the current reserved list, it is unlikely that any developer would trigger a reserved-list EC site for tender this year.”

Mak expects this site to attract about 5 to 8 bids with the estimated top bid ranging from $183.2 million to $196.8 million ($270 to $290 psf ppr).

The tender exercise ends at 12pm on August 23.

Source: HDB

Source: http://www.theedgeproperty.com.sg/content/anchorvale-lane-ec-site-tender

Property developer Sim Lian Group will launch its 504-unit Treasure Crest executive condominium (EC) project at Anchorvale Crescent for e-applications this Friday (1 July), with unit prices ranging between $735 psf and $755 psf on average.

This comes a week after e-applications opened for Northwave EC in Woodlands at a slightly higher average price of $760 psf.

Treasure Crest comprises 84 three-bedroom units, 364 three-bedroom premium units and 56 four-bedroom units, spread across eight 15-storey residential blocks. Unit sizes range from 958 sq ft to 1,345 sq ft.

The 99-year leasehold project is being marketed by ERA and OrangeTee. It is within close proximity to the Sengkang MRT station and bus interchange.

Other nearby amenities include Compass One, Oasis Terraces, Waterway Point, The Seletar Mall and Anchorvale Community Club. Established schools such as Nan Chiau Primary School, Nan Chiau High School and CHIJ St. Joseph’s Convent are also within the vicinity.

The project is expected to receive its TOP by 2019.

Sim Lian’s Group Executive Director Kuik Sing Beng expects the project to “appeal to new home buyers and upgraders alike”.

In 2015, the qualifying income ceiling for ECs was raised to $14,000. In addition, first-time buyers are eligible for CPF Housing Grants of up to $30,000.

PropertyGuru understands that prospective buyers will have a choice of a normal payment scheme or a deferred payment scheme.

E-applications will close on 10 July, while bookings start on 16 July.

Source: http://www.propertyguru.com.sg/property-management-news/2016/6/129346/applications-for-treasure-crest-ec-to-open-1-july?utm_source=pgsg-newsalert&utm_medium=edm&utm_campaign=dailynews-29Jun2016&utm_content=links

MAINBOARD-LISTED Sim Lian Group on Tuesday announced the launch of its executive condominium (EC) project, Treasure Crest, with units priced at S$735 to S$755 per square foot on average.

E-applications for the 99-year leasehold development will open on July 1 and close on July 10, while balloting and booking will take place on July 16.

Treasure Crest is a 504-unit EC located in Sengkang that is conveniently located near transportation nodes, lifestyle amenities and several schools.

The development is a short walk away from Sengkang MRT station and bus interchange.

Lifestyle amenities located close to Treasure Crest include Compass One, Anchorvale Community Club and Sengkang Polyclinic.

The EC is also within one km of popular schools such as Nan Chiau Primary School, Nan Chiau High School and CHIJ St Joseph’s Convent.

The three- and four-bedroom units at Treasure Crest will range in size from 958 sq ft to 1,345 sq ft, and the project is expected to receive its Temporary Occupation Permit (TOP) by 2019.

Prospective buyers may visit Treasure Crest’s sales gallery at Anchorvale Crescent, between 10am and 7pm daily, during the e-application period.

OrangeTee and ERA Realty are the marketing agencies for Treasure Crest.

Source: http://www.businesstimes.com.sg/companies-markets/sim-lian-group-launches-new-executive-condominium-at-anchorvale-crescent

Executive Condominiums (ECs) have been among the best-selling projects this year. Six of the 10 top selling projects in April were ECs.

Wandervale, the top seller in March, saw about 50 per cent of its units sold during its launch weekend. Launched developments are also seeing a pick-up in buyer activity. The Terrace was the best seller in February and has been seeing a constant stream of buyers, with nearly 80 units sold in March and April. A total of 51 units were sold at The Vales in April, while Bellewaters, an EC launched in 2014, is now close to 90 per cent sold. Projects approaching completion, such as Ecopolitan, Forestville and Sea Horizon have also managed to find buyers for almost all their units.

A hybrid between public and private housing, ECs cater to the needs of the “sandwich” class — those whose household incomes exceed the ceiling for public housing but are not quite yet able to afford a private property. As such, ECs come with a set of eligibility criteria to ensure affordability for this select group.

As with public housing, EC applicants must either form a family nucleus or join up with other singles if they are at least 35 years old. They must also not exceed the household income ceiling of S$14,000. Only Singaporean couples and Singaporean/permanent resident couples can buy an EC unit. Also, buyers have to fulfil a mandatory five-year minimum occupation period (MOP) before they are can rent out or sell the EC unit.

Despite these restrictions, ECs come with a full suite of condominium facilities and are generally comparable to private developments in design.

WHO ARE THE BUYERS?

ECs appeal to two main groups of buyers. The first group is made up of first-timers who are looking to get married in their early 30s. At this age, some couples would have a combined monthly income of about S$10,000 and some savings. This group also tends to be more financially savvy and are aware that at their level of income, they have a choice between applying for a Build-to-Order Housing and Development Board flat and buying an EC.

Those who choose to buy an EC are doing so for the lifestyle. Essentially, an EC is a subsidised private condominium. First-timers are eligible for a Central Provident Fund family grant of up to S$30,000. They are also exempt from paying the resale levy, which could be as much as S$50,000. All in all, first-timers stand to “gain” as much as S$80,000.

We observe that income levels of first-timers are clustered around the S$10,000 threshold, which indicates that most of the first-timers are buying ECs to maximise the grant amount. In some EC projects, first-timers account for the majority of the buyers.

The other source of demand of ECs comes from upgraders, or second-timers. This group mainly consists of families with children and they are looking to make the transition to private housing. In upgrading, they choose between an EC and a private development.

Here, ECs hold an advantage. ECs are physically indistinguishable from private developments and come with condominium facilities. In today’s competitive market, some ECs are also coming up with innovative ways to differentiate themselves. For instance, The Visionaire at Canberra offers 28 free lifestyle classes to residents. In addition, it is also the first EC to incorporate smart home technology.

Yet, ECs hold a clear pricing edge over condominiums. Despite being essentially the same housing product offering the same quality of living, ECs are typically sold at a discount of about 20 per cent to comparable private condominiums. The only difference is the five-year MOP and resale restrictions from the fifth to the 10th year.

WHERE SHOULD I BUY?

As the adage goes: Location, location, location. This is, without a doubt, one of the most important considerations when buying a property. Also factored in are any future plans by the Government as these usually have an effect on property values.

An upcoming residential hotspot is the Northern Region, comprising Sembawang, Woodlands and Yishun. The Urban Redevelopment Authority, in its 2014 Master Plan, outlined plans for the development of the Northern Region, spearheaded by Woodlands Regional Centre. Currently in its gestation stage, Woodlands is envisioned to grow into Singapore’s third regional centre, after Tampines and the Jurong Lake District. It will become a major employment hub and this is expected to have spillover effects on housing demand in the neighbouring towns of Yishun and Sembawang.

In addition, various infrastructure improvements have been introduced to improve connectivity. The North-South Corridor and the Thomson-East Coast Line are two major projects that will reduce travelling time to and from the north for commuters and drivers. This will further increase the attractiveness of housing estates in the north.

The North-East Region is also a popular destination for EC buyers. In May, the best-selling ECs were all located in Punggol and Sengkang. Anchored by the Punggol Creative Cluster and Learning, Punggol is set to be transformed into a space for innovative new industries, creating many employment opportunities in the process. Seletar Aerospace Park is another important development in the North-East Region. Currently home to multinational companies such as Rolls Royce and Airbus Helicopters, it is envisioned to create up to 10,000 jobs when completed.

Another area to take note of is Jurong. In Budget 2016, the Jurong Innovation District was unveiled. Scheduled to be completed by 2022, it aims to bring together students, researchers, innovators and businesses to create the industrial park of the future. The employment generated is expected to boost housing demand in the vicinity.

In conclusion, ECs provide a very viable option for buyers to consider, either as their first home or an upgrading option. However, not just anyone can buy an EC. The purchase of an EC is only for those who meet the stringent eligibility criteria. This select group of people should capitalise on this opportunity to own an EC and with it, a whole new lifestyle.

ABOUT THE AUTHORS: Eugene Lim is Key Executive Officer and Seah Yao Hui is Research Analyst at ERA Realty Network.

Source: http://www.todayonline.com/business/buying-ec-no-brainer-those-who-qualify