Understanding the market values of ECs PropertyGuru Seminar @ Forestville

1. A PROPERTY SEMINAR INVITATION
UNDERSTANDING THE MARKET VALUES OF
EXECUTIVE CONDOMINIUMS

2. Keith Cheong
Head of Research & Analytics
Speaker, “Discovering the Potential of North-East Zone”
Sennett Residence, District 13
Speaker, “What’s the Right Price to Pay?”
Sky Habitat, District 20
Speaker, “Discovering the Investment Potential of District 19”
Jewel @ Buangkok, District 19
Speaker, “Why Invest in Mixed-Use Developments?”
Hillion Residences, District 23
Trainer, “Property Buyer Insights & Behavioural Workshop”
for Property Developers & Digital Agencies

3. Can you tell an EC from a Private Condo?
Executive Condo
Private Condo
$1,299 psf
Woodlands Ave 2
689 units Woodlands Drive 16
$733 psf
653 units

4. What’s an Executive Condominium (EC)?
An Executive Condominium (EC) is a hybrid between
a private property and a HDB flat.
New ECs come with ownership and resale restrictions like
household income of not more than $12,000 and
a Minimum Occupation Period (MOP) of 5 years.
Partially Privatised
During the 6th to 10th year after completion, ECs can be sold to
Singaporeans or PRs with no family nucleus requirements.
Privatised
After 10 years, all restrictions on ECs are lifted.

5. Who’s eligible to purchase an EC?

6. Who’s eligible to purchase an EC?

7. Who’s eligible to purchase an EC?

8. CPF Housing Grants
The type of CPF Housing Grants available for EC applicants

9. Minimum Occupation Period (MOP)
You have to occupy the EC for 5 years before you can sell it in the open market.
You cannot invest in private residential property during the MOP.
Occupiers of EC must form Family Nucleus
Occupiers who are essential in the forming of a family nucleus with you
in the EC application must continue to be listed in the application and stay
in the EC during the MOP.
Occupiers cannot make separate EC/HDB Application
They cannot make a separate application, or to be listed as occupiers in
another application to purchase an HDB flat or another EC within the MOP.

10. Renting out your EC
Renting out your whole EC
Renting out of whole EC unit within the MOP is not allowed,
unless for valid reasons and subject to HDB’s written approval.
Renting out rooms in your EC
You can rent out your bedroom(s) in the EC within the MOP.
However, you must register the subletting with HDB within 7 days.
You must also notify HDB when you renew or terminate the subletting,
and when there are changes to your subtenants’ particulars.
You may approach the HDB Branch managing your EC to register the subletting.

11. Why are ECs appealing to First-Time buyers
& HDB Upgraders?
New EC units currently sold at 20-30% lower
compared to nearby private properties.
In some instances, the property values
start to narrow once the EC units can be
sold after the MOP and , eventually priced
like private properties once they cross the
10-year period.
The unintended effects of the TDSR measures
favours the HDB upgrader opting to purchase
a new EC; versus a private property.
The 15-month gap (i.e. waiting period by
Developers to launch EC projects) has put a cap
on EC supply from early-2014 to Aug 2014; drives
demand for EC projects

12. The Narrowing Gap between ECs &
Nearby Private Property
Executive Condo
TOP:
Private Condo
2003
TOP:
2003

13. EC makes a strong comeback
After a 5 year vacuum
Since the last batch of EC launches in 2004,
ECs are re-launched in 2010.
The total EC projects that took 10 years to
sell & build has just been overtaken by the
uncompleted EC projects & recent GLS
put together; post 5-year vacuum.

14. EC makes a strong comeback
After a vacuum 5 years
17
10
9
8
7
projects
privatized
6
29
projects
partially
privatized
projects
uncompleted
Vacuum period
No EC
Development
6
5
4
3
2
1
TENURE
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Privatization to Condo status: 10 years from TOP

15. The market values of Privatised ECs
All 17 completed ECs by 2003 before have been fully privatised
17
EC Projects
TOP
1. Eastvale
2. Westmere
3. Chestervale
4. Simei Green
5. Pinevale
6. Windermere
7. The Florida
8. The Rivervale
9. Woodsvale
10. Yew Mei Green
11. Summerdale
12. Northoaks
13. The Floravale
14. Lilydale
15. The Eden
16. The Dew
17. Bishan Loft
Jan1999
Feb 1999
Mar 1999
Apr 1999
Jul 1999
Sep 1999
Feb 2000
Jun 2000
Aug 2000
Sep 2000
Sep 2000
Oct 2000
Oct 2000
Mar 2003
Apr 2003
Jul 2003
Sep 2003
Ave PSF
Location
$874 psf
$861 psf
$708 psf
$837 psf
$760 psf
$672 psf
$780 psf
$796 psf
$709 psf
$755 psf
$796 psf
$721 psf
$739 psf
$741 psf
$862 psf
$910 psf
$1,107 psf
Pasir Ris
Jurong East
Bukit Panjang
Tampines
Tampines
Choa Chu Kang
Hougang
Sengkang
Woodlands
Choa Chu Kang
Jurong West
Woodlands
Jurong West
Yishun
Tampines
Bukit Batok
Bishan

16. The market values of Partially Privatised ECs
5 out of 6 completed ECs by 2008 before have been partially privatised;
except La Casa yet to cross the MOP
6
1.
2.
3.
4.
5.
6.
EC Projects
TOP
Ave PSF
Location
Nuovo
Park Green
Whitewater
The Esparis
The Quintet
La Casa
Aug 2004
Sep 2004
Jan 2005
Jun 2005
Oct 2006
Feb 2008
$949 psf
$834 psf
$838 psf
$815psf
$834 psf
$806 psf
Ang Mo Kio
Sengkang
Pasir Ris
Pasir Ris
Choa Chu Kang
Woodlands

17. The market values of Uncompleted ECs
What takes 10 years to sell & build have been supplied within the past 3 years,
testament of the strong EC demand.
29
EC Projects
1. Esparina Res
2. The Canopy
3. Prive
4. Austville Res
5. Belysa
6. Riverparc Res
7. Blossom Res
8. Arc @ Tampines
9. Tampines Trilliant
10. The Rainforest
11. Twin Waterfalls
12. Waterbay
13. 1 Canberra
14. Watercolours
15. Heron Bay
16. The Topiary
17. Citylife @ Tamp
18. Lush Acres
19. Ecopolitan
TOP
2014
2014
2014
2014
2014
2014
2014
2015
2015
2015
2015
2016
2016
2016
2016
2016
2016
2016
2016
Ave PSF
Location
$878 psf
$703 psf
$779 psf
$740 psf
$741 psf
$513 psf
$699 psf
$787 psf
$771 psf
$751 psf
$762 psf
$719 psf
$717 psf
$729 psf
$730 psf
$732 psf
$798 psf
$751 psf
$790 psf
Sengkang
Yishun
Punggol
Sengkang
Pasir Ris
Punggol
Bukit Panjang
Sengkang
Tampines
Choa Chu Kang
Punggol
Punggol
Yishun
Pasir Ris
Hougang
Sengkang
Tampines
Sengkang
Punggol

18. The market values of Uncompleted ECs
29
EC Projects
20. Twin Fountains
21. Forestville
22. Sea Horizon
TOP
2016
2016
2017
Ave PSF
Location
$741 psf
$739 psf
$800 psf
Woodlands
Woodlands
Pasir Ris
Quarter 4, 2014
23. Waterwoods
24. Skypark Residence
Punggol
Sembawang
EC Supply Gap (Early to Aug 2014)
Next batch of EC launches after Aug 2014
25. Woodlands Ave 5/6
26. Anchorvale Crescent
27. Punggol Central / Edgedale Plains
28. Punggol Drive / Edgedale Plains
29. Yuan Ching Road / Tao Ching Road
Woodlands
Sengkang
Punggol
Punggol
Jurong West

19. The Market Value Growth of
Privatised ECs
Northoaks
TOP: 2000
Woodsvale
TOP: 2000
720 units
$725 psf
696 units
$708 psf
Both ECs Privatized in 2010

20. The Market Value Growth of
Partially Privatised ECs
TOP:
TOP:
TOP:
2008
83 % HDB
17% Private
2016
2016
$657-$802 psf
$665-$809 psf
$736-$905 psf
The partially privatised EC
appreciates in value as it
progresses thru MOP and
eventually full privatisation.

21. EC land values on the rise
EC land values have risen in anticipation of strong market demand.
Sale of ECs remain steady over the past 3 years.
Launch 1,071 units / Sold 1,769 units (July 2013)
Unsold ECs from 1,039 (end-2012) to 341 units (Aug 2013)
EC Land Values set new records
Recent tender of 2 EC land parcels at Punggol fetches about 2x the price
compared to 3 years back. Land parcel at Jurong West also set new records.
The pent-up demand for ECs like to grow, increase price power of
Developers bidding for EC projects to be launched in 2014

22. Launch in 2014
Land Parcel: Punggol E15
Awarded
Aug 2013
Punggol Central / Edgedale Plains
Top Bid: $156 million
$356.14 psf ppr
8
bidders

23. Launch in 2014
Land Parcel: Punggol E16
Awarded
Aug 2013
Punggol Drive / Edgedale Plains
Top Bid: $312.8 million
$355.17 psf ppr
6
bidders

24. Launch in 2014
Land Parcel: Jurong West E5
Awarded
Aug 2013
Yuan Ching Road / Tao Ching Road
Top Bid: $272.8 million
$418.53 psf ppr
16
bidders

25. Launch in 2014
Land Parcel: Jurong West E5
Awarded
Aug 2013
Yuan Ching Road / Tao Ching Road
The confidence in the Jurong story,
supported by the strong take-up of
J-Gateway prompted this record
breaking bid.
The launch price of est. $900 psf
could set new record for EC market.

26. The Rapid Transformation of Woodlands

27. Quiz:
When will the Thomson Line be ready?
How many stages are there?

28. The Upcoming Thomson Line (TSL)
Stage1 (2019)
Targeting
2019-2021
Enhanced connectivity for residents
in the Northern region to city
Stage 2 (2020)
Sin Ming to Gardens By the Bay
Travel time slashed from 65min to 25min
6 stations
Cross Island Line (CRL) (2030)
Connecting Changi to Jurong
Stage 3 (2021)
Intersecting 4 MRT Lines
13 stations

29. Woodlands South Station NEW
Targeting
9
Serving some
Primary, Secondary
Schools; including the Sports School
Woodlands South station
2019

30. Quiz:
When will the North South Expressway be completed?

31. North South Expressway (NSE)
Slashing Travelling time from Yishun,
Sembawang, Woodlands to the City by 30%
Northern section 15.9km (2020)
Admiralty Rd West to Toa Payoh Rise
Linking Yishun, Sembawang,
Woodlands to the city
Southern section 5.6km (TBC)
Connecting to ECP
Completed
2020

32. Singapore - Johor Bahru
Rapid Transit System (RTS)
Targeting
The RTS link is planned to integrate
with TSL at Woodlands North station
(vicinity of Republic Polytechnic)
and Tanjung Puteri, JB
2018/9

33. Quiz:
When will the Singapore – KL High-Speed Rail be completed?
How long will it take to travel from Singapore – KL ?

34. Singapore – Kuala Lumpur
High-Speed Rail (HSR)
Targeting
2020
The HSR boasts a projected speed of 300 km/h
and expected to trim travel time between
the 2 cities to 90min

35. Woodlands Regional Centre
in 10-15 years
1 of the 4 Regional Centres identified under the Land Use Plan
to create Business Hubs outside the city centre
Provides more locational
choices for businesses
Brings jobs and amenities closer to homes
Reducing the need to travel towards the city centre.
North Coast Innovation Corridor
(Long Term Plan)
extends from Woodlands Regional Centre,
the future Seletar Regional Centre to the
learning corridor and innovative cluster at
Punggol.

36. Woodlands North Coast
The Woodlands North Coast is envisioned
as a unique waterfront destination
Offering a myriad of employment
& investment
opportunities for both locals and visitors
Presenting a mix of business, residences,
uses set within a lush green environment
lifestyle

37. Woodlands Central
A walkable, pedestrian-centric
regional retail hub serving the
surrounding residents in the North Region
A Pedestrian mall that connects
the MRT/bus interchange & provides
a key focal point for shopping &
community events

38. With the rapid transformation of Woodlands,
supported by enhanced locational growth
& connectivity, owning a property in
a locality that you’re familiar with;
that also caters to your
lifestyle requirements.