New ECs struggle to find buyers in tough market

They’re simply too costly now.

Buyers are shying newly-launched Executive Condominiums (ECs), as the EC market continues to grapple with high unit costs despite a looming supply glut.

Although the EC market saw some activity in October with the launch of The Criterion, analysts at JLL note that most new projects struggle to increase sales after their launch.
The Criterion sold 41 units last month at a median price of $805 psf after launching all 505 units for sale.

The other top-selling EC projects in October were Sol Acres, The Brownstone, Signature at Yishun and The Terrace. They sold between 20 and 68 units each with median prices ranging from $779 to $820 psf.

“Other than The Criterion which was launched in October, six other new EC projects were also launched in 2015. As at October their take-up rates varied between 21 per cent and 43 per cent. At selling prices of around $800 psf, buyers are less enthusiastic and less willing to commit than before when market conditions were more positive,” JLL said.

Earlier in November, developers aired their concerns over the EC market in a quarterly survey published by the National University of Singapore and the Real Estate Developers’ Association of Singapore.

“Competition in the EC market is expected to intensify further, the latest EC launches are being priced around $750 to $780 psf. There are many unsold EC units especially in the North-East region,” said one respondent in the survey.

“A few EC projects which were supposed to launch in 2H15 have delayed their launch dates to 2016. We should see more launches in 2016. The number of residential launches would be contingent on changes in housing policies,” said another.