Singapore Wandervale EC by Sim Lian Group has beaten market forecasts by selling the 50 percent of 534 Wandervale units.
According to Wong Xian Yang of OrangeTee, Wandervale project was well received by the market, despite experiencing tepid market conditions.
The good condition of Wandervale EC is unsurprising due to lower prices given to its units. Three bedroom apartment unit prices start from $655,000. Considering the percentage of total unit sold for the first month of sales, Wong stated that Wandevale EC has outperformed other seven EC projects launches last 2015.
However, the project successfully transacted only around 267 units despite that Wandervale EC units was oversubscribed by more than 40 percent. Wandervale EC received a total of 750 e-applications during application period ended last 28 February.
Conversion rate of sales from e-applications about 30% to 40% is common in the Singapore EC segment, Wong added.
Wong also noted that there could be some reasons why the sales didn’t happen, including their inability to guarantee an 80% loan-to-value (LTV) ratio, not enough CPF funds to secure the following 15% of progressive payments, and buyers changed their minds.
With 3 properties being developed in Choa Chu Kang, the area will see an oversupply in EC units. A total of 2,350 units will inject in Choa Chu Kang area by EC projects such as Wandervale, Sol Acres by MCL Land and the upcoming Qingjian Realty’s EC at Choa Chu Kang Avenue 5.