RESIDENTIAL MARKET
EC developers should heed policy's spirit: Khaw
National Development Minister Khaw Boon Wan has said that developers of executive condominiums (ECs) exercising the flexibility in pricing and design that they have been given should stay within the spirit of the concept of this class of housing.
Issuing the reminder through a blog post in "Housing Matters", he wrote that ECs were conceptualised for Singaporean families earning within $12,000 a month, to enable them to own condominium-style homes at below the market rate.
Noting news reports that an EC penthouse had recently been sold for $1.77 million, and that another penthouse would soon hit the market, he wrote: "I expect the developer to have done his calculations to ensure that the unit will be affordable for the targeted EC applicants. We provide EC developers with much flexibility, but they must be mindful that this flexibility must be exercised in keeping with the intent and spirit of the EC policy."
He also wrote that the government zones and tenders out plots specifically for ECs, enabling developers to acquire these plots for less than land meant for private condominiums, to build ECs for those who can afford to buy more than an HDB flat, but still find private property unaffordable. Some in the industry read his blog comments as being a precursor to some government measures to rein in EC prices.
The $1.77 million unit ($624 per sq ft) that Mr Khaw was referring to is in Heron Bay in Upper Serangoon; a week before it was sold, a double-storey penthouse in Yishun's 1 Canberra went for $1.61 million ($595 psf).
A 4,349 sq ft "presidential penthouse suite" in the upcoming project, CityLife @ Tampines, is expected to trump this. Billed as "Singapore's first luxury hotel-style" EC, the project by Amara Holdings, Kay Lim Holdings and SingXpress Land is sited next to The Tampines Trilliant.
Source: Business Times –24 November 2012
New-style ECs proving a hit with buyers
Executive condominiums (ECs) have emerged as one of the clear winners this year with strong buyer demand on the back of a string of new launches with high-end features.
About 7,100 EC units have been sold since ECs were re-introduced in 2010 with 10 of the 15 projects released either selling out or having fewer than 10 units left.
The big winners include Prive in Punggol, Belysa in Pasir Ris and Esparina Residences in Buangkok.
The other five projects, including Watercolours in Pasir Ris and 1 Canberra in Yishun, had about 780 units left at the end of last month.
But buyers keen on ECs need not worry about their range of choices being whittled down.
There are at least seven EC projects either being built or in the planning stages that have yet to be launched, including in Punggol, Pasir Ris and Woodlands.
Forestville in Woodlands, CityLife @ Tampines and The Topiary in Sengkang are expected to be pushed out before Christmas.
There are also ongoing tenders for two EC sites - in Sembawang and Punggol - on the government land sales programme, which will bring to nine the number of upcoming launches.
Experts say recent bids for EC sites continue to reflect optimism in the sector among developers and buyers.
Developers have pulled out all the stops in attracting Housing Board (HDB) upgraders and first-timers as they battle for buyers spoilt for choice by the flood of new home launches.
Penthouses and skysuites, for instance, have become increasingly common at EC projects. The upcoming launch CityLife @ Tampines, for instance, will offer a "presidential penthouse suite" of 4,349 sq ft as well as four and five-bedroom skysuites with a wrap-around open terrace.
Projects such as Heron Bay in Upper Serangoon View also feature tantalising extras that rival even private condos such as a jacuzzi or garden pond within a ground floor unit.
Overall prices, in turn, are also creeping up with more million-dollar condominiums being sold this year as demand for luxurious and larger-sized units grow.
The average unit price of all new ECs sold also reached a historical high of $731 per sq ft in the third quarter this year.
ECs combine elements of private and public housing and often have premium furnishings and facilities. But they are subject to HDB rules that specify a monthly household income cap of $12,000.
They are also subject to a minimum occupation period of five years. They can then be sold only to Singaporeans and permanent residents. They become private property after 10 years and can then be sold to foreigners.
Source: The Straits Times –24 November 2012
Tai Seng industrial area hots up with MRT's arrival
Property investors are paying close attention to Tai Seng, an industrial area whose appeal has grown markedly since the arrival of an MRT station in 2010.
It is one of the few industrial areas with easy MRT access and the prices of strata factories, for instance, have jumped accordingly.
The area may be familiar to consumers needing to get electronics products serviced as several well- known retailers have set up headquarters there.
An authorised Apple service centre for iPhone repairs is next to Tai Seng MRT station, and laptop maker Asus has a service centre nearby. Musical instrument maker Yamaha has a technical service centre at Tai Seng Drive.
Several home-grown brands also call Tai Seng home, including shoe retailer Charles and Keith, Japanese food chain Sakae Sushi, and DIY store Home-Fix. Bakery chain BreadTalk is building its international headquarters in Paya Lebar iPark, at the doorstep of Tai Seng MRT station.
Analysts said the accessibility of the area and presence of relatively established businesses made the area's outlook promising. Average selling prices for strata factories in Tai Seng have jumped 40 per cent to 70 per cent over the past two years.
The 15ha Paya Lebar iPark, a pilot project by JTC that incorporates green spaces and specially designed buildings into the industrial park, has been the most significant recent development in the area.
Recent projects in the vicinity include Oxley Bizhub and Vertex, which are both on 60-year leases.
Asking rents for spaces in Tai Seng's newer completed developments are $2.50 to $3.50 psf. For the area's older industrial buildings, which house a mix of businesses, rents range from $1 to $1.50 psf.
Source: The Straits Times –24 November 2012
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