Private Property Report: Executive Condominium

Private Property Report: Executive Condominium


Singapore private property resale prices inch up in August on low volume the median TOS improved $10,000 but it’s still in negative territory also rents continue to fall on today’s show we go behind the headline numbers to find out how executive condominiums are performing during the cooling measures next on xtv with your host mark bloom good day I’m at Luna I’m standing inside the quintet an executive condominium located in charge account in district 23 which also offers a spectacular view of the former railway track executive condominiums also known as EC’s are private condos but with buying and selling restrictions imposed by the HDB the government created this housing class for Singaporeans especially young graduates and professionals who can afford more than a HDB flat but less than a private condo private developers build Easy’s to be comparable in design and facilities to that of a private condo for better understanding on executive condominiums we now turn to Angela told Emily hi Angela so a star profile were typical easy buyer well they are usually young couples or families work for a few years some are first-timers while others are HDB upgraders some of these easy buyers actually belong to the Savitch class who earn too much to qualify for a bt or FET but my private property prices too high for a new easy a buyer must be a Singapore citizen with at least one other citizen or permanent resident in the family nucleus have a household income of not more than $12,000 per month they won’t be able to sell the home for minimum of five years owners are only eligible to sell an easy to a Singaporean or permanent resident after five years and a foreigner after ten years so what are the advantages of buying an easy easier of a HDB okay first hence easy buyer can potentially save money as there is no lesser or not much renovation either secondly they can restructure financing after five years this they can create them loan or equity loans and Lee is the owner they can sell to Singapore citizen Singapore PPR or permanent residence after the mo P and O P stand for minimum occupation periods which is five years and two foreigners ten years after the GOP and next a photo per housing with equality finishings and condominiums facilities like swimming pool tennis court and 24-hour securities maintaining fee including a parking space so there’s no additional season packing as compared to HTV let’s now take a look at how easy s have performed during the cooling measures and how they stack up against unrestricted private condos but first the numbers for the private non landed market in August’s note the easies are counted in the private market numbers they are not counted in the HDB numbers according to the SRX Price Index non landed resale prices inched up from one six eight point eight in July to one six nine point four in August this is an increase of only 0.4% but nonetheless it’s still an increase something which we haven’t seen since much since the indexes peak in January prices have declined 5.3 percent August resale volume was relatively flat posting an estimated four one eight transactions compared with four one seven in July monthly sales are down seventy nine point six percent since the peak in volume of April 2010 the preliminary median transaction over x value tio X shows another month of negative market sentiments even though tio acts in August improved $10,000 tio X is still in negative territory at negative ten thousand dollars now most executives condominiums are located in the OCR region meaning outside central region they are 47 easy projects to choose from on SR XCOM the SG and our mobile app as our X home search as our x.com dot s G contains 103 verified and unique listings for sale and 32 verified and unique listings for rent executive condominiums tend to be less expensive than comparable private condos because of ownership and selling restrictions they have been performing well since 2006 and why the advantages of buying an EC instead of private condo this is a lot heavily subsidized condos just that these subsidies come with terms and conditions data have shown that in some location prices of EC and condos are about 20 to 30 percent apart there is thus excellent capital appreciation potential associated with disease in addition eligible buyers also qualify for CPF housing grant from HTV just like buying HTV be selfless and yet it will not have to pay the resale levy though this is only for AC project whose land were bought before it is about predicting median resale price and PSF has increased 138 percent since 2006 which translates to an analyze increase of 11.5% in comparison median resale prices in unrestricted private condos in OCR have increased 120% which translates to an analyze increase of ten point four percent while executive condominiums have outpaced OCR private condos in terms of price appreciation the cooling measures have had a bigger impact on the EC’s EC median resale PSF is of 6.1% since its peak in december 2013 whereas unrestricted private condos in OCR are down four point seven percent since their peak in September 2013 while the htb median resale PSF has dropped nine point eight percent since his peak in May 2013 and that concludes our look at executive condominiums for complete information on the eligibility requirements for purchasing an EC please visit HDB govt ESG now to track the performance of a EC ask your SRX analyzer agent to break out the EC numbers from the rest of the private condo market alternatively go to SRX dot-com SG / Price Index to download the full SRX private property report for August there you will discover among other things that private rental prices in August 2014 down 6.6 percent from August 2013 thank you for watching xev please join us next week when we look at another SRX rule for investing in Singapore property this is Mark loon reporting for SRX and from all of us at xtv have a good day

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