In the executive condominium segment, developers sold 72 new EC units in March, down 21.7% from the 92 units transacted in February. On a y-o-y basis, this was an 87.5% drop in transaction volume.
In the absence of fresh launches, EC projects with more significant sales were Signature at Yishun (39 units sold at a median price of $789 psf) and Northwave (19 units sold at a median price of $843 psf). A few other EC projects had sales of less than 10 units during the month. Most launched EC projects are already substantially sold, hence the low sales figures, according to property consultants.
In April, transaction volume is expected to get a lift from the launch of Rivercove Residences on Anchorvale Lane in Sengkang, the only EC project to be launched so far in 2018. On the first day of sales on April 14, nearly 80% of the 628 units were sold at an average price of $965 psf, which is a record price for an EC, notes Nicholas Mak, executive director of ZACD Group.
The crowd on the first day of sales at Rivercove Residences, where close to 80% of 628 units were sold at an average price of $965 psf by ballot (Credit: Huttons Asia)
Rivercove Residences’ average selling price is almost 15% higher than the ASP of $842 psf achieved at Hundred Palms Residences when it was launched in July 2017. In fact, all the 531 units at Hundred Palms Residences were sold on the first day.
The previous record price for an EC was set by the 546-unit Lake Life in Jurong Lake District. It was launched and fully sold at an ASP of $870 psf in November 2014.
While it was not a surprise that Rivercove Residences did well, owing to the lack of new EC supply that caters to the “sandwiched class”, the sharp increase in prices also reflects a strong rerating for EC and private home prices in the Sengkang/Punggol area.
It is widely expected that the new EC on Sumang Walk, in Punggol, could be priced above $1,000 psf. This would be comparatively higher than other ECs in the Sengkang/Punggol vicinity that have been launched at median prices of $750 to $813 psf between 2013 and 2016, notes Tricia Song, head of research for Singapore at Colliers International.
The site on Sumang Walk received 17 bids at the close of the tender in February. It was sold for $509.37 million to a joint venture company set up by City Developments and TID Pte Ltd. The price translates into $583 psf per plot ratio, which is 64% higher than the top bid of $355 psf ppr paid by Hoi Hup Realty and Sunway Developments for the Rivercove Residences site in August 2016.