Are EC Prices becoming too high? The prices of Executive Condominiums (ECs) seem to be increasing. Over the last few years, the price gap between condos designed for the mass market and ECs has significantly reduced. The cost of an EC is now more than it was previously. For instance, the price of Rivercove Residences EC has now set a new price bar for EC. This EC’s price threshold almost reached $1,000 psf as per its 2018 launched.
EC Prices Compared to Private Condo Prices
ECs have always been cheaper than private condos. But as the property market experiences a shift, there is an increasing narrowing gap. Between the 1st quarter of 2015 and the 2nd quarter of 2019, new EC projects have experienced an increase in transaction prices. This amount has gone high by almost 22 percent.
Overall, the new EC pricing threshold is related to the sale of new OCR projects. Projects such as Riverfront Residences, Treasure at Tampines, and Parc Botannia had psf prices ranging around the lows of $1,250 and reaching the highs of $1,300. After Piermont Grand, the next development launching will be Parc Canberra which is by Hoi Hup Realty. The development is located at Sembawang and is near to Canberra Link MRT Station
EC Prices Continue to Rise
Looking at the market trends, it’s clear that the price of ECs will still continue to steadily rise. Piermont Grand EC, for instance, was sold for about S$583-psf ppr. Data estimates indicate that the breakeven price for this condo’s units was around S$1,000 psf. However, this price could even be more. Launched in March 2019, Treasure at Tampines has already moved around 272 units of the released 490 units. This is roughly 56 percent of all the units. It’s worth noting that the average price was at $1,280- psf on the weekend it was launched. Treasure at Tampines is considered as one of the biggest condo developments in Singapore with a total of 2,203 units.
2019 Parc Canberra EC Prices
The EC market in 2019 and the subsequent years seems promising. However, it’s important to note that Piermont Grand is the 1st EC which was launched in 2019. Although the year is not over yet, this EC is most likely to the only project to be launched this year. So, this means that there will be more interest in EC projects in the coming years. The demand is going up and developers are now keen on feeding this new demand.
But what is the effect of the new interest in ECs? Well, most HDB owners who want to upgrade seem to be in dilemma. The price range between OCR condos and EC is at an all-time low which means that HDB owners keen on upgrading are now confused