Since November of last year, there have been five launches of Executive Condominiums (EC) in Jurong, Woodlands and Sengkang / Punggol areas.
Let’s take a look at how they have performed in terms of units sold from launch until the end of April 2015.
As you can see from the SRX Property table, the Terrace at Punggol has fared the worst so far, selling only 23.2% or 173 out of 747 units.
Of the ECs in the Punggol / Sengkang areas, Bellewaters has fared the best with 36.1% or 235 out of 651 units sold year-to-date. The Amore has not chalked up as many sales as Bellewaters, with only 101 out of 378 units sold. This is equivalent to 26.7% of total units transacted.
The best performing EC during this period has been Lake Life at Jurong East / Jurong West, with 97.6% or 533 out of 546 units sold from November 2014 to April 2015.
Let’s examine some of the reasons why some ECs have performed better than others so far.
In the Sengkang / Punggol area, there has been competition from a few private condos launched around the same time, including Riverbank at Fernvale and Rivertrees Residences. They are similar in price to that of the ECs.
The private condo prices range from $818 psf to $1,102 psf. In contrast, the prices of ECs Bellewaters, the Amore and the Terrace range from $774 psf to $848 psf. For home upgraders and first-time buyers in the area, the prices of ECs are comparable to that of the private condos yet the former come with holding and selling restrictions.
As such, it appears that upgraders and first-time buyers are opting for the private condos in this area, as more than 80% of the units in the private condos have been sold whereas none of the EC competitors have yet to crack much more than a third of their inventory.
Lake Life has several advantages over its brethren in Punggol/Sengkang and elsewhere.
First, developers and the Government have been hyping the Jurong Lake district for quite some time. Even Prime Minister Lee Hsien Loong showcased the attributes of the area during the August National Day Rally in 2014.
Second, Lake Life is priced below that of the most recent private condo launched in the area. Private condo Lakeville, located in Jurong West, has sold 90% of its units at prices ranging from $1,327 psf to $1,345 psf. In contrast, Lake Life is priced around $869 psf.
Finally, Lake Life is the first EC in 17 years to be launched in the area. This, coupled with the relatively good pricing, has been capturing pent-up demand from upgraders and first-time home buyers.