SINGAPORE – The third and likely last executive condo (EC) project to hit the market this year saw robust sales at its launch – a sign of the strength of this property segment amid the latest cooling measures, higher mortgage rates and an economic slowdown.
Tenet in Tampines Street 62 sold 447 units, or 72 per cent, of its 618 units on Saturday at an average price of about $1,360 per sq ft (psf).
It is jointly developed by Qingjian Realty, Santarli Realty and Heeton Holdings.
The strong take-up rate was achieved despite the launch being held in December, when many people are travelling overseas after Covid-19 pandemic measures were relaxed, said Ms Yen Chong, deputy general manager of Qingjian Realty.
The strong sales mirrored those of Copen Grand EC in Tengah Town, which sold 465 units, or 73 per cent, of its 639 units at prices averaging $1,300 psf on its launch day in October.
Copen Grand became fully sold just a month after that.
Ms Wong Siew Ying, head of research and content at PropNex Realty, expects Tenet could also become fully taken up when sales are opened to more second-time buyers in a month’s time.
Under EC rules, only 30 per cent of a project’s units can be allocated to second-timers at launch.
“We understand that the second-timer buyer quota was maxed out during the project’s launch,” she said.
Mr Lee Sze Teck, Huttons Asia senior director of research, said Tenet is bound to attract plenty of interest from Housing Board upgraders, given its location. It is in a mature estate and a five-minute walk from an upcoming Government Land Sales site zoned for a mixed-use development, including a future mall.
The EC will be integrated with the future Tampines North MRT station on the Cross Island Line and Tampines North Bus Interchange.
Mr Lee noted that buyers of EC projects have two distinct advantages. Those who are upgrading from HDB flats need not pay the additional buyer’s stamp duty upfront and thus do not need to sell their flat and look for another place to stay.
They can also opt for a deferred payment scheme and thus avoid the current high interest rate environment.
Ms Wong said ECs like Tenet are still benefiting from the large price gap with the private housing market. Tenet’s pricing, for example, makes it more than $700 psf cheaper than some suburban private condominiums launched this year which went for more than $2,100 psf.
She added that the “likelihood of the US Federal Reserve taking its foot off the pedal on rate hikes could also have given more assurance to buyers to commit to the property purchase”.
The next EC project to launch is in Bukit Batok West Avenue 8 and is another joint venture, between Qingjian Realty and Santarli Realty. It could hit the market in mid-2023, offering an estimated 375 units.
