An Executive Condo (EC) is a combination of public and private housing. It is very similar to new condo launch as it is within a gated community and has facilities like swimming pool, clubhouse, gymnasium and many more.
Choa Chu Kang EC site of 1.64 hectares deemed not too attractive by property market experts has garnered an amazing 11 bids when tender closed on 28 Jul 2015. This site can yield an estimated 490 new executive condo units.
Qingjian Realty’s joint venture – Suntec Property Ventures and Qingjian’s Investment arm – Bohai Investments (Sengkang) submitted the highest bid price of $156.157 million or $295.12 per square feet per plot ratio (PSF PPR). The second highest bid of $275.71 psf ppr offered by TID – joint venture between Mitsui Fudosan and Hong Leong Holdings, is 6.6% lower than the highest bid.
The healthy number of bids is because there is only one EC site being offered in the 1st half of Government Land Sale (GLS) Programme in 2015; and one EC site offered in the 2nd half of GLS Programme.
With the lower land cost submitted for the Choa Chu Kang Ave 5 EC site, it is hoped that the developer will price the upcoming EC project more competitively.
A nearby EC project in Choa Chu Kang, Sol Acres, is made up of two plots of land. MCL Land bought the two adjacent lands in Choa Chu Kang Grove for $375 psf ppr and $338.90 psf ppr in Mar 2014.
And in the same year in Sep 2014, an EC plot in Choa Chu Kang Drive was bought by Sim Lian at the cost of $361.1 psf ppr.
Property market experts projected that the Choa Chu Kang Ave 5 EC project may eventually be sold below $800 psf.
Although the number of available EC units in the Choa Chu Kang area may be high now, it is expected to ease by the time this new EC project at CCK Ave 5 is launched, some 15 months from July 2015.
Demand for EC is projected to increase too due to the increase in income ceiling per household from $12,000 to $14,000.