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27-06-13, 14:28
http://www.straitstimes.com/premium/money/story/five-executive-condo-sites-put-sale-20130626
Five executive condo sites put up for sale
Demand for ECs being met despite uncertainty over their future: Analysts
Published on Jun 26, 2013
By Melissa Tan
THE Government will continue to roll out executive condominium (EC) sites in its land sales programme for the second half of this year, despite recent uncertainty over the future of the segment.
Half of the 10 residential sites up for sale on the confirmed list for the next six months are slated for EC development.
The five EC sites are a 1.74ha plot at Westwood Avenue in Jurong West, a 2.86ha plot at Canberra Drive in Sembawang, a 1.81ha plot at Anchorvale Crescent in Sengkang, and two adjacent land parcels in Choa Chu Kang Grove.
Parcel A and Parcel B at Choa Chu Kang Grove, which are 1.64ha and 1.65ha respectively, will be released with the same tender closing date, the Ministry of National Development (MND) said yesterday.
This is aimed at encouraging "more prudent bidding" by developers, it said.
There is one EC site on the reserve list, a 1.91ha parcel at Choa Chu Kang Drive. It is next to The Rainforest, which is also an EC.
Knight Frank research and consultancy head Alice Tan said that while most of the EC sites on the confirmed list are located some distance away from major transport nodes, they are expected to be "reasonably well received as EC homes are currently in demand".
She said the Westwood Avenue site in particular is likely to appeal to developers and home buyers since there has been no EC project launch in the Jurong West area since the Floravale EC, which was completed in 2000.
Noting that ECs account for nearly half the total number of housing units released on the confirmed list for the second half, CBRE Research associate director Desmond Sim said this reflected the Government's "firm commitment" to meet demand for such units from first-time buyers and those upgrading from Housing Board flats.
ECs are a form of hybrid housing and cater to a "sandwiched class" of home buyers who might not qualify for public housing but cannot afford private property.
The segment has been in the spotlight in recent months after Minister for National Development Khaw Boon Wan raised the issue that EC owners, who receive government subsidies, make a bigger profit in the resale market than the average flat owner.
Mr Khaw also hinted that he may relook the EC scheme, triggering concerns over EC supply.
However, Jones Lang LaSalle national director of research and consultancy Ong Teck Hui said the number of EC units released in the Government Land Sales programme in the second half does not suggest that supply will be "scaled back significantly in tandem with policy revisions".
Still, SLP International research head Nicholas Mak pointed out that the total number of EC units expected to be developed has slid slightly from 3,110 units for the first half of this year to 2,785 units for the second half.
Releasing EC sites in non-mature housing estates will help to moderate the future prices of these projects, Mr Mak added.
The MND said yesterday that it will continue to require that EC site developers only launch units for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier.
This applies to all the EC sites released in the second half.
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Five executive condo sites put up for sale
Demand for ECs being met despite uncertainty over their future: Analysts
Published on Jun 26, 2013
By Melissa Tan
THE Government will continue to roll out executive condominium (EC) sites in its land sales programme for the second half of this year, despite recent uncertainty over the future of the segment.
Half of the 10 residential sites up for sale on the confirmed list for the next six months are slated for EC development.
The five EC sites are a 1.74ha plot at Westwood Avenue in Jurong West, a 2.86ha plot at Canberra Drive in Sembawang, a 1.81ha plot at Anchorvale Crescent in Sengkang, and two adjacent land parcels in Choa Chu Kang Grove.
Parcel A and Parcel B at Choa Chu Kang Grove, which are 1.64ha and 1.65ha respectively, will be released with the same tender closing date, the Ministry of National Development (MND) said yesterday.
This is aimed at encouraging "more prudent bidding" by developers, it said.
There is one EC site on the reserve list, a 1.91ha parcel at Choa Chu Kang Drive. It is next to The Rainforest, which is also an EC.
Knight Frank research and consultancy head Alice Tan said that while most of the EC sites on the confirmed list are located some distance away from major transport nodes, they are expected to be "reasonably well received as EC homes are currently in demand".
She said the Westwood Avenue site in particular is likely to appeal to developers and home buyers since there has been no EC project launch in the Jurong West area since the Floravale EC, which was completed in 2000.
Noting that ECs account for nearly half the total number of housing units released on the confirmed list for the second half, CBRE Research associate director Desmond Sim said this reflected the Government's "firm commitment" to meet demand for such units from first-time buyers and those upgrading from Housing Board flats.
ECs are a form of hybrid housing and cater to a "sandwiched class" of home buyers who might not qualify for public housing but cannot afford private property.
The segment has been in the spotlight in recent months after Minister for National Development Khaw Boon Wan raised the issue that EC owners, who receive government subsidies, make a bigger profit in the resale market than the average flat owner.
Mr Khaw also hinted that he may relook the EC scheme, triggering concerns over EC supply.
However, Jones Lang LaSalle national director of research and consultancy Ong Teck Hui said the number of EC units released in the Government Land Sales programme in the second half does not suggest that supply will be "scaled back significantly in tandem with policy revisions".
Still, SLP International research head Nicholas Mak pointed out that the total number of EC units expected to be developed has slid slightly from 3,110 units for the first half of this year to 2,785 units for the second half.
Releasing EC sites in non-mature housing estates will help to moderate the future prices of these projects, Mr Mak added.
The MND said yesterday that it will continue to require that EC site developers only launch units for sale 15 months from the date of award of the sites or after the physical completion of foundation works, whichever is earlier.
This applies to all the EC sites released in the second half.
[email protected]