HDB’s invitation to tender for two new Executive Condominium (EC) sites should be welcome news for the sandwich class and is expected to be very warmly received by developers and buyers alike.
“There have been no EC launches for the last five years,” explains PropNex CEO Mr Mohamed Ismail, “mainly because the private property mass market remained largely affordable, negating the need for ECs. Homeowners either opted for HDB executive apartments or a mass market condominium.”
Adding on to his explanation of why he expects developers to bite, he also highlights the fact that recent tenders for residential land parcels drew many bids, probably because many developers had exhausted their supply of land banks.
“Subsequently, we expect much interest from the home buyers,” says Mr Ismail, “because private property launches in the mass market have recently seen prices exceed $800psf. This can be attributed to the fact that many developers of such projects bought the land for around $500psf or more, driving the costs up.
“And the fact is,” he continues, “that $800psf is still beyond the means of many young families who aspire to a private property lifestyle. Hence, the ECs will provide an attractive substitute for these people.”
He also points out that ECs will be very popular for the sandwich class whose household monthly income is between $8,000 and $10,000. These people were not eligible for BTO (Build-To-Order) flats, but will be able to buy the new ECs when they come onto the market.
Mr Ismail lauds the HDB for their quick and decisive action in addressing the needs of this sandwich class. “There has been some concerns raised by these publics for public housing that they can apply for, and this is a positive step in the right direction,” he concludes.
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726