SINGAPORE – The first executive condominium (EC) launched in 2024 saw more than half of the available units sold over the weekend, with analysts offering mixed assessments of the take-up.

Some said the 53 per cent of units sold at Lumina Grand, launched on Jan 27, shows healthy demand for ECs, while one analyst noted that the proportion sold has dropped from the highs of previous years despite favourable conditions.

City Developments Limited (CDL), developer of the Bukit Batok project, said in a media statement that 269 out of 512 units had been sold as at noon on Jan 28, with the three-bedroom premium and four-bedroom units the most popular.

Lumina Grand units are priced from $1.34 million for a three-bedroom unit to $1.39 million for a three-bedroom premium and $1.63 million for a four-bedroom. A five-bedroom unit is priced at $2.1 million. The average launch price was $1,464 per sq ft (psf), with an additional 3 per cent applied to units sold under the deferred payment scheme.

CDL group chief executive officer Sherman Kwek said in a statement: “The strong take-up rate for Lumina Grand reflects the keen interest among first-time buyers and HDB upgraders for well-located and thoughtfully designed properties.”

In the statement, the property giant noted that only 30 per cent of EC units could be allocated to second-time buyers during the initial launch under current regulations, and that this quota had been reached for Lumina Grand.

Huttons Asia CEO Mark Yip said the demand from second-time buyers was “very strong”.

He noted that the split between first-time and second-time buyers was 43 per cent and 57 per cent.

ERA Singapore CEO Marcus Chu said there was sizeable pent-up demand from qualified buyers for the project as it is likely to be the only EC launch in 2024.

He noted that there is a price gap of 44 per cent between an EC and a newly launched suburban private condominium located outside the central region. This is up from the gap of 29 per cent in 2019, making ECs an attractive option, he added.

He said astute home buyers are also drawn to the potential for EC units to be sold at private property prices, adding that EC owners typically make a gross profit of between $300,000 and $450,000.

Based on EC projects completed since 2015, there were only three unprofitable transactions, he said.

Propnex CEO Ismail Gafoor, meanwhile, said there is pent-up demand for EC units as there is a limited number of unsold ones in the area. He cited the nearby Altura development being 89 per cent sold as at Jan 20.

“Furthermore, (with the project) being located near the upcoming Tengah new town, where plenty of new HDB flats are being built, some EC buyers may see it as a potential exit plan in the future, by selling their EC units to HDB upgraders eventually,” said Mr Ismail.

However, Mr Nicholas Mak, chief research officer of Mogul.sg, observed that the take-up rates of the most recent EC project launches have been slipping gradually, with Lumina Grand the lowest among four projects.

In the first weekend of its launch, Copen Grand EC, launched in October 2022, saw 73 per cent of its 639 units sold; Tenet EC, launched in December 2022, had 72 per cent of its 618 units sold; and Altura EC, launched in August 2023, had 61.1 per cent of its 360 units sold.

Lumina Grand’s lower take-up rate is despite the factors in its favour, said Mr Mak. He cited how the project is likely to be the only EC launched in 2024, and also the low stock of available EC units.

He attributed the falling take-up rate to the rising prices of EC units. The average price of Copen Grand was $1,300 psf, while the average price of Lumina Grand is 12.6 per cent higher, at $1,464 psf after the “early-bird” discount, he said.

Over the same period, the non-landed residential property price index had risen more slowly at 6.9 per cent, he added.

“Hence, the price increase of new EC units has outpaced the prices of the rest of the condominium market,” he said. “Although ECs are still popular, the housing budgets of home buyers are limited.”

ERA, Huttons and PropNex are the marketing agents for Lumina Grand, along with OrangeTee & Tie.

The 179,000 sq ft development, which consists of 10 residential blocks that will have 12 to 13 storeys, features unit sizes ranging from 936 sq ft for a three-bedroom flat to 1,496 sq ft for a typical five-bedroom unit.

Located at the junction of Bukit Batok West Avenue 5 and Bukit Batok Road, Lumina Grand has facilities such as a 50m lap pool, reading lounges and a children’s play zone.

The EC is located near Bukit Gombak MRT station on the North-South Line, as well as the future Tengah Plantation and Tengah Park stations on the upcoming Jurong Region Line.