EC prices are in for a correction soon.
Executive Condominiums used to dominate new home sales, but that golden era seems to be drawing to a slow and painful close.
Data from the Urban Redevelopment Authority show that 184 EC units were sold out of 378 new launches in January. A report by CBRE highlighted that the number of unsold ECs has spiked by 11% month-on-month to hit 2251 units, as buyers seem more inclined to buy homes from existing launches.
“CBRE has observed that there are some stirrings in the market for projects which have been launched previously and this is positive for managing the launched and unsold stock. Possibly, it may be due to the preference of some buyers for projects which are nearing completion so that they can occupy the homes they bought within a shorter timeframe,” said Desmond Sim, Head, CBRE Research, Singapore & South East Asia
The Amore was the only new EC launched in January, moving 83 of its 378 units at a median price of $795 psf. The Amore was the best-selling EC project during the month as sales at other EC projects launched in the last few months have slowed down.
JLL National Director for Research & Consultancy Ong Teck Hui warned that the sales progress of most ECs launched in the last few months shows slowing demand at current price levels.
“Three of the four ECs launched in November and December 2014 have only managed to achieve take-up rates of 17 per cent to 30 per cent. This explains why recent tender bids for EC sites have fallen significantly, and also reflects an expectation of EC prices correcting,” he said.
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