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PR Newswire
25-04-2013, 08:52 AM
The Straits Times
www.straitstimes.com
Published on Apr 25, 2013
Prices of resale ECs exceed new units' pricing
Reasons: Glut of new units; blurred lines between privatised ECs, condos
By Cheryl Ong
IN A surprise development, the median prices of resale executive condominiums (ECs) have exceeded those of new EC units.
This is the first time it has happened since the Government reintroduced ECs - a hybrid of public and private housing - into the market in 2010.
One key reason, according to property consultancy Jones Lang LaSalle, is that a plentiful pipeline of new ECs is keeping the prices of new units in check.
In a report, it said the median price of resale EC units hit a high of $778 per sq ft (psf) in the first quarter, exceeding the median price of $748 psf for new units.
In the first quarter, resale ECs also recorded a rise of 5.4 per cent in median prices from the previous quarter - the biggest spike in the past 21/2 years.
Jones Lang LaSalle Singapore research director Ong Teck Hui said prices for new ECs had been higher than those for resale ECs.
"Being new and with a fresh 99-year leasehold, a new EC typically fetched a higher price than a resale EC," said Mr Ong.
But median prices of resale units rose shot up 25.7 per cent between the fourth quarter of 2010 and the first quarter of 2013, while the median prices of new EC units returned to the price levels of 2010 at $748 psf.
Another reason for the reversal could be the blurred lines between private condos and privatised ECs. After 10 years, all restrictions on ECs are lifted.
Median prices of both types of properties appreciated in tandem over the past 2 1/2 years.
In Jurong East, the median price of Westmere EC shot up at a faster rate of 40.6 per cent than nearby private condo Parc Oasis which jumped 35.8 per cent, both since the last quarter of 2010.
Typically, new EC owners are required to occupy their units for at least five years before selling. The units can be sold only to Singapore citizens or permanent residents from the sixth to 10th year.
Mr Ong also said the location of ECs could be another reason for the record median prices.
For example, Bishan Loft, which no longer faces restrictions and is near Bishan MRT station, exceeded the median price of $1,000 psf in the first quarter.
"Pricing differentials between EC developments are mainly due to location, with those nearer MRT stations and amenities commanding higher prices," he said.
To date, 18 ECs have been launched since 2010, with 8,434 of the 9,130 units on the market sold as of the fourth quarter of 2012.
ocheryl@sph.com.sg
www.straitstimes.com
Published on Apr 25, 2013
Prices of resale ECs exceed new units' pricing
Reasons: Glut of new units; blurred lines between privatised ECs, condos
By Cheryl Ong
IN A surprise development, the median prices of resale executive condominiums (ECs) have exceeded those of new EC units.
This is the first time it has happened since the Government reintroduced ECs - a hybrid of public and private housing - into the market in 2010.
One key reason, according to property consultancy Jones Lang LaSalle, is that a plentiful pipeline of new ECs is keeping the prices of new units in check.
In a report, it said the median price of resale EC units hit a high of $778 per sq ft (psf) in the first quarter, exceeding the median price of $748 psf for new units.
In the first quarter, resale ECs also recorded a rise of 5.4 per cent in median prices from the previous quarter - the biggest spike in the past 21/2 years.
Jones Lang LaSalle Singapore research director Ong Teck Hui said prices for new ECs had been higher than those for resale ECs.
"Being new and with a fresh 99-year leasehold, a new EC typically fetched a higher price than a resale EC," said Mr Ong.
But median prices of resale units rose shot up 25.7 per cent between the fourth quarter of 2010 and the first quarter of 2013, while the median prices of new EC units returned to the price levels of 2010 at $748 psf.
Another reason for the reversal could be the blurred lines between private condos and privatised ECs. After 10 years, all restrictions on ECs are lifted.
Median prices of both types of properties appreciated in tandem over the past 2 1/2 years.
In Jurong East, the median price of Westmere EC shot up at a faster rate of 40.6 per cent than nearby private condo Parc Oasis which jumped 35.8 per cent, both since the last quarter of 2010.
Typically, new EC owners are required to occupy their units for at least five years before selling. The units can be sold only to Singapore citizens or permanent residents from the sixth to 10th year.
Mr Ong also said the location of ECs could be another reason for the record median prices.
For example, Bishan Loft, which no longer faces restrictions and is near Bishan MRT station, exceeded the median price of $1,000 psf in the first quarter.
"Pricing differentials between EC developments are mainly due to location, with those nearer MRT stations and amenities commanding higher prices," he said.
To date, 18 ECs have been launched since 2010, with 8,434 of the 9,130 units on the market sold as of the fourth quarter of 2012.
ocheryl@sph.com.sg
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