HDB launches tender for Seng Kang & Tampines EC sites: Here’s what you need to know
At the end of 2019, the Housing Development Board released two executive condominium sites for sale by tender. The site at Fernvale Lane can house about 480 EC residential homes, while the second site at Tampines Street 62 (on the reserve list) can house about 595 EC residential homes.
What does this new release of EC sites mean for the property market? Here’s what Christine Sun, Head of Research & Consultancy at OrangeTee & Tie says.
Trends in the EC market for 2020
Demand for executive condominiums is expected to remain strong next year since there has been a dearth of new launches over the past few years and only one new EC project has been launched this year. Further, the pool of eligible buyers has been increased since the government has raised the income ceiling for Singaporean households who wish to buy EC units from S$14,000 to S$16,000.
The increased income ceiling may draw higher-income Singaporeans to the EC market which may boost demand for larger EC units or ‘higher-quality’ ECs with more premium finishings. The expected pent-up demand may encourage some developers to participate in the tender for the Fernvale EC site.
Impact of private housing supply on EC market
The current supply of private housing units may not have a significant impact on the demand for ECs as both markets cater to buyers of different income levels and housing budgets. For instance, the average price of new ECs is around S$1000-1200 psf whereas the price of new mass-market condominiums is around S$1,400-1,600 psf this year. Therefore, those looking for more affordable, ‘entry-level’ private housing will consider an EC.
In fact, increasing the number of land parcels for EC development will continue to keep prices of ECs at a sustainable level for Singaporeans. Even with three EC projects slated to be launched next year, the EC supply is still not high as compared to 2012 when nine projects have been launched within that year.
Fernvale EC site: Who is it for?
The site may attract HDB upgraders living in Sengkang and Punggol. More than 10,000 HDB flats may have reached their five-year Minimum Occupation Period in Sengkang and Punggol this year, with more flats slated to reach their MOP next year. Therefore, many HDB owners will likely hope to upgrade to private housing and this Fernvalve EC site may help to meet the upgrading aspirations of Singaporeans living in these two areas.
Tampines EC reserve site: Will developers bite?
At least three projects are slated to be launched in the first half of next year, which includes Ola at Anchovale Crescent, Parc Canberra at Canberra Link and an upcoming site at Tampines Ave 10. Developers may likely observe the sales take-up of these projects before deciding if they want to trigger the Tampines EC reserve site.