The recent cooling of the property market has not affected much the demand of privatized executive condominiums (ECs) and is even scoring high gains lately. RST Research Director Ong Kah Seng mentioned that the launch prices way back then were quite low due to several issues and events such as the weak economy and health crisis. He added that the prices of older Executive Condominiums climbed from 2010 caused by the low interest rates which in turn, sent the housing values high-reaching. In reverse, the recent price launches of Executive Condominiums are almost nearing the $1,000 mark. This is already a level through which the resale of EC unit seems very unlikely to cross in the future.
Mr. Ong further mentioned that the latest ECs are priced much higher compared to the older ones but then, their price gap when compared to the recent suburban condominiums may be somewhat much smaller now. When the privatized Executive Condominiums were launched, the suburban condominiums were only sold at a price range of $500 to $600 psf. However, the price range in Bishan has already reached more or less $1,000 psf. This goes to show that EC developers may not be that keen to cut the prices in recent times considering that the government grants are given to EC buyers, there is a rise in the income ceiling cap as of last year and the issue of abundant supply.
As of the end of last year, there were an estimate of 3,450 Executive Condominium units which were unsold while anticipated EC projects that are yet to be released will yield 3,200 more homes. Given these circumstances, it is hoped that there will be a spur in the demand. Buyers now have many options to consider like the new 99-year leasehold condominium or getting older freehold condos with an allocation of about $1,000 psf.