Not another EC site in CCK?!

By The Folks @PropTalk - May 20, 2015 No Comments

An executive condominium site along Choa Chu Kang Ave 5 was launched for sale on Tuesday. However, the site is expected to receive only lukewarm response from developers and moderate land bid prices. This is largely due to three negative factors:

1. The site's far-flung location - it is almost 2km from Choa Chu Kang MRT station. Yes, we're have to consider actual road distance and not how Superman will measure it!

2. The significant build-up of ECs in Choa Chu Kang - Two new projects by Sim Lian and MCL Land that are expected to launch over the next 6 - 9 months will add another 1,865 units around the area. So Choa Chu Kang may end up joining the likes of Woodlands and Sengkang in their rendition of "Where have all the EC buyers gone?"

3. No major retail facilities in the vicinity of the site and no pretty scenery either.

The 4.9-hectare, 99-year leasehold site is estimated to generate about 490 units. The tender will close on June 30 and forecast for top bid is in the range of $250 - $330psf ppr.

The last EC site that was sold in the area was along Choa Chu Kang Drive and located about 600m from Choa Chu Kang MRT station. Sim Lian Land secured the site with a winning bid of $361psf ppr at a tender last September.  

With the significant slowdown in demand for ECs versus mounting supply over the next few years - not just Choa Chu Kang but in general - the wife and I reckon that potential EC buyers may be prudent to keep these three-worded mantra at heart: Location, location, location!

Convenience aside, units in EC projects that do not offer much in terms of character or amenities and faraway from MRT stations will find it tough when it's time to rent or sell. And to rub salt to injury, the task is made even more challenging these days with the "beefed up" resale levy. 

One can always argue that Singapore is way too small for any area to remain status quo after 5 - 10 years. So there is every chance that a big mall or even a transport hub may surface near to what is deemed "unfavorably located" EC sites now. But the question remains: are you prepared to take the risk with the unknown or err towards the try-and-tested when comes to finding your new home?

Even money's on the wife and I sticking to the later...

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