ECs stay relevant amid exciting developments

IT has been a year of contrasting halves for executive condominiums (ECs) in 2015. The first six months of this year saw heightened concerns about an oversupply of ECs, as sales were sluggish for EC projects. However, in H2 2015, developers cut prices for unsold stock and new launches and consequently, sales improved.

Developers trimmed average EC prices from S$800 per square foot (psf) in the first half to S$780 psf or less in H2 2015. This has helped to mitigate oversupply worries in the EC segment.

To recap, it has been nearly five years since EC projects made a comeback in 2010. ECs are a public-private hybrid housing form minted to meet the needs of the sandwiched group. From 2010 to H1 2013 (a two-and-a-half-year period), the EC average launch price appreciated modestly from S$700 psf to S$750 psf. This increase was in sync with improving buyers' sentiment for residential properties on the whole during that period.