Healthy demand for ECs from upgraders and young couples

Another executive condominium (EC) project, Parc Life, will hit the market on Saturday – the second EC development to be launched in Sembawang in just over a week.

The 628-unit EC in Sembawang Crescent, jointly developed by Frasers Centrepoint and Keong Hong Holdings, promises “doorstep access” to adjacent Canberra Park, and is near Sembawang MRT station.  Upcoming executive condo include The Visionaire EC, Wandervale EC,  Parc Life EC, Treasure Crest, Northwave EC while existing ones include The Terrace EC, Brownstone EC, Waterwoods EC, Signature at Yishun, Skypark Residences, The Vales EC, The Criterion EC, Bellewaters EC, Bellewoods EC.

Parc Life comprises two- to five-bedroom units in a variety of layouts, ranging from 753 sq ft to 1,550 sq ft.

Average prices range from $770 to $800 psf, the developers said in a joint statement yesterday.

“We are out there to compete,” said Frasers Centrepoint chief executive of development and property Cheang Kok Kheong at a media preview of the showflat on Tuesday.

Parc Life will be vying for buyers against projects such as Qingjian Realty’s 632-unit The Visionaire EC at Canberra Link launched on April 8. It garnered over 400 e-applications for units over the weekend.

Two previously launched projects in the area with units still on offer are The Brownstone by City Developments and TID, and SkyPark Residences by joint venture company Oasis Development.

The median price for The Brownstone was $819 psf, and $767 psf at SkyPark Residences in February, while Qingjian said prices of units at The Visionaire will be announced only after April 17 when e-applications close.

Competition may be stiff, but Mr Cheang believes there is still healthy demand for ECs from Housing Board upgraders and young couples. He added: “About 70 per cent of buyers we are targeting are the first-time buyers and upgraders living within the 3km range in Yishun, Woodlands and Sembawang, while we anticipate that the remaining 30 per cent will comprise homeowners currently living along the North-South MRT (red) line.”

E-application for units at Parc Life will open from April 16 to 24.

Successful applicants can book their unit on April 30. The development is expected to be completed in the first quarter of 2018.

Parc Life’s developers had rejigged unit sizes there after the Government raised the household income ceiling for eligible EC buyers from $12,000 to $14,000 last August. Frasers Centrepoint general manager for sales and marketing Elson Poo said: “At $14,000 income, they generally can afford a larger apartment.” It reduced the number of two-bedders from 100 to 46 to fit in more three-bedroom units, and it also introduced 16 five-bedders.

About 77 per cent of the units at Parc Life are three-bedroom or three-plus-universal room options.

Frasers Centrepoint said Parc Life will have spa pools, a 50m infinity pool overlooking Canberra Park and a pet-grooming pavilion.

It is the third EC to be launched this year, after Wandervale at Choa Chu Kang and The Visionaire.

OrangeTee.com, one of the property agencies marketing Parc Life, said the EC market got off to a good start this year with Wandervale selling 292 of 534 units last month.

However, some analysts told The Straits Times that EC sales are generally expected to remain slow.

Chestertons managing director Donald Han noted: “It is going to be a tough market because of the weak sentiment, and the fairly large EC supply. There is excess capacity in the market.” As of February, about 3,200 EC units were unsold.

Century 21 Singapore chief executive Ku Swee Yong said: “The number of EC units launched but were left unsold climbed rapidly last year, allowing us to conclude that we have exhausted most of the demand for ECs, and raising the income ceiling did not lead to a significant additional demand.”

Despite the headwinds, analysts say Frasers Centrepoint’s proven track record and familiarity with the property market in the northern part of the island should give it a slight edge over competing projects in Sembawang.

executive condo photo 4