Straits Times
BUYERS have showed scant interest in The Amore executive condominium (EC), with only 18 per cent of the units believed to have been sold on the opening weekend.
About 70 flats were moved at the 378-unit project in Edgedale Plains, following its launch on Saturday.
Prices at the project, a joint development between Keong Hong Holdings, Master Contract Services and JBE Holdings, averaged about $800 per sq ft (psf).
The Amore is the last project where buyers who have already bought an HDB flat or EC will not have to pay a resale levy.
But sales have been muted across the EC market, with the exception of Lake Life in Jurong.
The Terrace EC in Edgedale Plains has sold about 150 of 747 units at a median price of $813 psf. The project by Kheng Leong launched on Dec 7.
Qingjian Realty had sold 186 of 651 units at a median price of about $804 psf at Bellewaters EC in Sengkang as at Dec 31 and 78 of 561 units at the Bellewoods EC in Woodlands. Prices there were about $794 psf. Both projects were launched in November.
Mr Donald Ng, Qingjian's head of sales and marketing, noted that the pace of sales has doubled since it launched a "CoSpace Flexi" concept about two weeks ago.
These units come with minimal furnishing - no floor tiles, wardrobes or doors - allowing owners to customise their units. It also shaves off prices by $25,000 to $45,000 per unit.
About 20 units have been sold across both projects since Jan 1, including two CoSpace Flexi units. About 10 units were being sold every two weeks previously.
Lake Life in Jurong has bucked the EC sales trend, almost selling out in the first weekend of its launch in November. It was the first EC to be built in the area in 17 years.
The significant cooling of EC demand is somewhat unexpected.
About a year ago, demand was tipped to be robust following a nine-month period without any launches, said SLP International executive director Nicholas Mak.
However, a large supply of Built-To-Order flats and falling HDB resale prices have weakened demand from would-be upgraders, who are now opting for HDB flats. The 30 per cent mortgage servicing ratio (MSR) cap introduced in December 2013 has also hit demand, said Mr Mak.
Many of the new projects are also in areas where existing ECs have soaked up demand, said R'ST Research director Ong Kah Seng.
The Amore is the eighth EC to be launched in Punggol since 2010, Bellewaters the fifth in Sengkang and Bellewoods the third in Woodlands, said Mr Ong.
"Current EC sales are fairly slow compared with all projects launched from 2010," he said.
New EC projects are now expected to sell about 30 per cent of their units within three months from launch.
In contrast, at least half of EC developments from 2010 were almost fully sold three months from launch.
Based on land sold, about 10 more EC projects totalling about 5,600 units could potentially enter the market in the next 12 months, said Mr Mak.
Sales for these could be even slower, given that the resale levy will apply, said Rodyk & Davidson partner Lee Liat Yeang.
"Buyers would naturally converge on the current batch of ECs without the levy," he said.