Sales at recently established executive condominiums (ECs) haven’t been leading despite the high number of e-applications received, reported The Business Times.
Nevertheless, seven out of the 14 EC projects started since 2014 failed to realize even the minimal conversion rate during their start weekend.
The most recent EC to establish was the 628-unit Parc Life. Together developed by Keong Hong Holdings and Frasers Centrepoint Limited, it exclusively sold 51 units during its start last weekend despite recording over 700 e-applications.
In contrast, the amount of e-applications some EC projects received in 2011 to 2013 easily surpassed the quantity of units offered by two times during the marketplace’s heyday, said Managing Director of KF Property Network, Tan Tee Khoon.
Based on Nicholas Mak, Executive Director of SLP International, the low take up rate is because of the substantial supply. “It’s simply too much for the marketplace to digest in that period of time (as) demand for ECs in suburban areas are generally restricted to upgraders or those who live in the place.”
This is particularly true for developments being constructed for multiple ECs and launched at about the same time, as they’re competing for the exact same pool of eligible buyers who most probably submitted e-applications in the exact same place.
Century 21 Chief Executive Ku Swee Yong considers the poor sales “are conclusive signs that demand is exhausted for such a property. Based on the present rate of EC trades, he believes the marketplace needs at least two years to completely consume the remaining unsold units. Upcoming ec includes Anchorvale crescent Treasure Crest.