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[h=2]New EC to be launched at record price of $800 psf by PRC
developer[/h]
August 3rd, 2013 |
Author: Editorial
A new executive condominium (EC), the 495-unit Sea Horizon,
near Pasir Ris beach will launch next week at an average price of $800 per sq ft
(psf) according to industry sources.
This is by far, the highest price for EC but prices for EC are expected to
move up further, from the way developers bid for the land.
Units at the project range from 71 sq m two- bedders to five-bedroom units of
160 sq m. It will also have penthouses of between 129 sq m and 160 sq m.
The EC is developed by Hao Yuan Investment, a China-linked company registered
in Singapore in 2010, just 3 years ago. Hao Yuan is also the developer of
Forestville EC in Woodlands.
Hao Yuan made news in Dec last year when it launched the 653-unit Forestville
EC after changes it had made to the project’s development plans were not
approved by the authorities, despite instructions from the Controller of Housing
(COH) not to proceed. Conditions in Hao Yuan’s housing developer’s licence for
Forestville were subsequently changed such that it had to close its show-flat
and stop all marketing activities. However, in Jun this year, it was given the
green light to sell Forestville EC units.
Hao Yuan put in a bid of $207 million for the site in November last year,
beating nine other bidders. That translates to $331.1 psf per plot ratio (ppr)
for the 27,660 sq m plot.
In Punggol, another new EC, Ecopolitan, opened for bookings today (3 Aug) at
an average price of about $790 psf. Its developer is also another China-linked
company, Qingjian Realty.
On Tues (30 Jul), an EC site in Jurong’s Yuan Ching Road drew a record number
of bids from 16 developers with the top bid of $418 psf ppr, a new high for an
EC site. The units will have to sell for close to $900 psf, consultants said. At
$900 psf, many units in the new development will likely top $1 million in
price.
ECs are supposed to be a public-private housing hybrid and were introduced by
HDB to meet the demands of the so-called “sandwiched class” who do not qualify
for public housing but find private property beyond their reach. ECs are sold
with HDB restrictions but they will turn private after 10 years.
To qualify for an EC, the applicants’ average gross monthly household income
must not exceed $12,000 under HDB rules. Taking $12,000 as household income, at
$1 million, the Price-to-Income Ratio, otherwise known as the Affordability
Ratio (i.e, price of the house over the annual income), is 7. The World Bank
considers a ratio of 5 or under as affordable for local residents, while the
United Nations have set the standard lower, at 3 (see also Link). Anything above 5 is
considered not affordable.
developer[/h]
near Pasir Ris beach will launch next week at an average price of $800 per sq ft
(psf) according to industry sources.
This is by far, the highest price for EC but prices for EC are expected to
move up further, from the way developers bid for the land.
Units at the project range from 71 sq m two- bedders to five-bedroom units of
160 sq m. It will also have penthouses of between 129 sq m and 160 sq m.
The EC is developed by Hao Yuan Investment, a China-linked company registered
in Singapore in 2010, just 3 years ago. Hao Yuan is also the developer of
Forestville EC in Woodlands.
Hao Yuan made news in Dec last year when it launched the 653-unit Forestville
EC after changes it had made to the project’s development plans were not
approved by the authorities, despite instructions from the Controller of Housing
(COH) not to proceed. Conditions in Hao Yuan’s housing developer’s licence for
Forestville were subsequently changed such that it had to close its show-flat
and stop all marketing activities. However, in Jun this year, it was given the
green light to sell Forestville EC units.
Hao Yuan put in a bid of $207 million for the site in November last year,
beating nine other bidders. That translates to $331.1 psf per plot ratio (ppr)
for the 27,660 sq m plot.
In Punggol, another new EC, Ecopolitan, opened for bookings today (3 Aug) at
an average price of about $790 psf. Its developer is also another China-linked
company, Qingjian Realty.
On Tues (30 Jul), an EC site in Jurong’s Yuan Ching Road drew a record number
of bids from 16 developers with the top bid of $418 psf ppr, a new high for an
EC site. The units will have to sell for close to $900 psf, consultants said. At
$900 psf, many units in the new development will likely top $1 million in
price.
ECs are supposed to be a public-private housing hybrid and were introduced by
HDB to meet the demands of the so-called “sandwiched class” who do not qualify
for public housing but find private property beyond their reach. ECs are sold
with HDB restrictions but they will turn private after 10 years.
To qualify for an EC, the applicants’ average gross monthly household income
must not exceed $12,000 under HDB rules. Taking $12,000 as household income, at
$1 million, the Price-to-Income Ratio, otherwise known as the Affordability
Ratio (i.e, price of the house over the annual income), is 7. The World Bank
considers a ratio of 5 or under as affordable for local residents, while the
United Nations have set the standard lower, at 3 (see also Link). Anything above 5 is
considered not affordable.
