5,000 more EC units expected this year!

By The Folks @PropTalk - May 4, 2015 No Comments

The wife and I read over the weekend that some 5,000 executive condominiums (ECs) are slated for launch this year. This is on top of the estimated 2,100 unsold units from 12 EC projects already launched.

Take-up rate for some of the recent EC projects have been poor. The Amore, which was launched in January, sold just a quarter of its 378 units in the first three months. Bellewaters (651 units)  in Sengkang and Bellewoods (561 units) in Woodlands were launched last November and have only sold 34% and 22% of their units respectively as at end-March.

According to data from URA, vacancy rate of available and completed ECs have shot up to 15.1% in the first quarter of this year from 11.5% in the fourth quarter of last year.

Given the weak market demand, exacerbated by loan restrictions that are still in place, the upcoming EC launches are likely to worsen the unsold inventory situation.

So the question becomes: Given the potential oversupply and the "not quite so hot" locations of these new launches, how "motivated" will developers be to drop prices in order to move units? 

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