414 out of a total of 700 units were sold at the Parc Central Residences Executive Condominium (EC) on the first day of launch on Jan 23. For units sold at the conclusion of the booking exercise, the average sale price was $1,177 psf. The Tampines Street 86 Executive Condominium, just off Tampines Avenue 10, is a joint venture between Sunway Growth and Hoi Hup Realty.
At the start of the weekend, about 414 out of 700 units at Parc Central Residences were sold at an average price of $1,177 psf.
It demonstrates that Parc Central Residences is a value-for-money commodity because our customers have meticulously planned and designed it and are really well received,” says Koon Wai Leong, Hoi Hup’s general manager on behalf of the joint venture.” “Although we are in the midst of a pandemic, but there are still many upgraders and first-time condo buyers, EC is still a preferred asset class.”
It is certainly a strong take-up pace to have 59 percent of the total units sold on the first day of sale, says Ismail Gafoor, CEO of PropNex. “And it wasn’t surprising as there were about 700 cheques being collected during the e-application phase.”
One of the explanations for the high sales may be that, since CityLife@Tampines in Feb 2013, there has not been a new launch in Tampines. “That’s almost eight years ago,” points out Gafoor.
“Parc Central Residences’ sales are a positive sign for the EC market as it shows that demand is still healthy,” says Nicholas Mak, ERA Singapore Head of Research and Consultancy. “Not since March 2020, when OLA debuted at Anchorvale Crescent in Sengkang, has a new EC project been launched.”
At $1,177 psf, Parc Central Residences’ average sale price is marginally higher than OLA’s $1,100 psf in March of last year. MCC Land’s 413-unit Provence Residence at Canberra Crescent, off Sembawang Lane, which is scheduled for launch sometime in 2H2021, will be the next EC project to be opened for sale. “If EC prices continue to rise, the government may be given a reason to intervene,” Mak says.
As far as Executive Condo for sale are concerned, the next EC location, which was launched for tender under the Government Land Sales (GLS) 2H2020 program last November and will close in May of this year, will be located on Tengah Drive. Mak adds that it is the first EC location in Tengah.
In the EC sub-market, however, consumers are real homeowners, not speculators, says Gafoor of PropNex. People are purchasing from a long-term perspective: those buying today have to wait another three to four years before receiving their keys to complete the project. They have to satisfy the MOP [minimum occupancy period] of five years after construction, which ensures they would not be willing to market the project before nine years hence, and it would be in 2030, he calculates. “If they want to enjoy the full value of the EC and sell only 10 years after completion, when the EC is open on the resale market to foreign buyers, that will be 2035.”