Are EC projects a sure thing?
Dec 26, 2022
By   Internet
  • City News
  • EC Project
  • EC Market
  • EC Analysis
Abstract: The talk has been flying around the real estate market lately for the hottest EC project in Copen Grand - Tengah Town's first executive condominium.

Less than a week after the sales showroom opened on 7 October, the 639-unit project's showroom attracted some 20,000-plus visitors and received 2,300 e-applications from potential buyers.

By the end of the first day of launch on 22 October, 465 units had been sold (a 73% sales rate).

Sales momentum at Copen Grand remained unstoppable despite the tightened stress test for potential buyers as a result of the cooling measures on 30 September.

Fifty-six of the development's 639 units are 5-bedroom premium flat units - four of which are penthouses.

Guide prices for the development range from S$1,189 to S$1,338 per square foot, with starting prices for five-bedroom premium flats starting from S$1.88 million.

In the first week of the development's launch on 22 October, one of the 1,679 sq ft five-bedroom penthouses in Block 53 (Type D1-PH) sold for a record price of S$2.173 million or S$1,294 per sq ft.

The unit has a 15 square metre raised floor above the living and dining area and a floor-to-ceiling height of 4.5 metres.

While the unit was sold within the guide footage price range, this is a record price for a new EC launch to date (for an uncompleted new development).

In District 24, which is located in the Denga, Kranji and Lim Chu Kang areas, it is currently the record setter for this community and district.

Almost all EC units resold over the past 15 years have made an average profit of S$300,000.

Not surprisingly, despite the eligibility restrictions, EC remains popular with first-time buyers and HDB upgraders.

The average gross profit on 99.9% of all EC units sold in the resale market from 2007 to the end of August was S$295,904 per unit. Most of these units were sold less than 10 years after first purchase.

For example, the S$3.29 million resale EC at CityLife@Tampines was sold for a profit of S$1.38 million. The unit was first purchased in 2013 for S$1.91 million and was held by the buyer for 8.6 years.

When the CityLife@Tampines EC was launched in December 2012, a 4,350 sq ft penthouse was sold for S$2.05 million - a record for a new EC launch at the time.