Strong Demand
Since 2015, the demand for new Executive Condo units has picked up. In 2015, a total of 2,550 Executive Condominiums were sold compared to 1,578 units sold in the year 2014. And in the year 2016, 3,999 Executive Condominiums units were sold in 2016, a 56.82% increase in the number of Executive Condominiums sold.
As expected, in 2017, the EC buying pace has not slowed, between January 2017 and March 2017, a total of 1,080 Executive Condominium units were sold. In comparison, 781 units were sold in the 1st quarter of 2016 (seasonal comparison), and 753 units were sold in the 4th quarter of 2016 (quarter-on-quarter).
The strong sales in the 1st quarter of 2017 are led by Sol Acres EC with 263 units sold, The Visionaire with 96 units sold and The Terrace with 82 units sold.
Table of Top 10 Selling ECs in 1Q2017
| Executive Condominiums | Location | Total | Mar 2017 | Feb 2017 | Jan 2017 |
|---|---|---|---|---|---|
| Sol Acres | Choa Chu Kang | 263 | 144 | 82 | 37 |
| The Visionaire | Sembawang / Canberra | 96 | 43 | 39 | 14 |
| The Terrace | Punggol | 82 | 3 | 40 | 39 |
| The Vales | Anchorvale | 81 | 27 | 38 | 16 |
| Westwood Residences | Jurong West | 78 | 40 | 25 | 13 |
| Parc Life | Woodlands | 63 | 25 | 26 | 12 |
| Bellewoods | Woodlands | 46 | 21 | 15 | 10 |
| The Brownstone | Canberra | 42 | 18 | 13 | 11 |
| Signature at Yishun | Yishun | 36 | 15 | 15 | 6 |
| The Criterion | Yishun | 34 | 18 | 12 | 4 |
(You may refer to “Monthly Transaction of Executive Condos in 2017” for the complete list of Executive Condominiums’ transaction volume.)
Weak Supply
The number of unsold new Executive Condominiums is falling faster than the injection of new Executive Condominiums.
At the end of the year 2015, there were 3,656 unsold new Executive Condominiums.
At the end of the year 2016, there were 2,976 unsold new Executive Condominiums.
By end March 2017, the number of unsold new Executive Condominiums dropped to 2,275 units despite the injection of 497 units from iNZ Residences in March 2017.
(For a complete list of available units in individual Executive Condominiums, you may refer to “List of Executive Condos with Unsold Units“.)
Even with the upcoming launch of Hundred Palm Residences in June 2017, adding 531 new Executive Condominium units into the supply pool will only push up the number of unsold units to 2,801 (assuming no more Executive Condominium sold from now till Jun 2017).
The shortage of Executive Condo will continue into 1H2018 as there is no EC list site in the past two Government Land Sales Programme (GLS). Moreover, if there were EC sites in the upcoming GLS in the 2nd half of 2017, the new EC will only be launched in late 2018 or early 2019. This delay is due to the 15-month waiting period from acquiring the site and market launch of the project that the EC developers have to adhere rules and regulations set forth by the government when acquiring the land for development of Executive Condo.
What drives this demand for Executive Condo?
The reasons we mentioned in our article “Reasons People are Buying Executive Condo” are still valid.
In case you are running out of time for that article, in a nutshell, the main driver for the strong demand for new Executive Condo is the significant price gap from the new private condominium within the same vicinity. With a lower purchase price and comparable characteristics (i.e. condo facilities), ECs enjoy a higher margin of safety and a bigger capital appreciation potential than its private condominium counterpart, making it an attractive proposition for eligible owner-occupiers buyers.
So, if you are planning to buy an Executive Condo, it is wise for you to start looking around – the number of available Executive Condominium units will get lesser as time passes. As the old saying goes, time and tide wait for no man.
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