Brownstone EC adds to glut as applications open

The glut in the Executive Condominium (EC) market is set to get worse with new launches adding a wave of supply into a housing segment where take-up has been generally lacklustre.

On Thursday (Jul 9), developer City Developments (CDL) said applications for The Brownstone EC at Canberra Drive in Sembawang will open from Friday to Jul 20, with bookings to be conducted on Jul 25.

CDL did not reveal indicative pricing for The Brownstone, with a company spokesperson saying this will be done closer to the booking date.

The 638-unit EC is located next to the upcoming Canberra MRT Station along the North-South Line. The project comprises eight blocks of 10- to 12-storey apartments, with sizes ranging from 732 square feet for a two-bedroom unit to 1,711 sq ft for a five-bedroom penthouse.

Group General Manager Chia Ngiang Hong said CDL expects keen interest for the development, given its “strong locational attributes”.

As many as seven new EC projects are expected to be launched later this year. As of May, 4,176 EC units remained unsold, compared to 2,738 in May 2014.

Analysts, including Mr Ong Kah Seng and Mr Alex Sun from property research firm RST, have recently said that demand for ECs, with the exception of Lake Life in the Jurong Lake District, had been sluggish at prevailing price levels.

They said that the median sale price of about S$800 psf can no longer be supported for projects in locations such as Punggol, Sengkang, Woodlands, Sembawang and Choa Chu Kang, but added that sales will improve significantly if developers cut prices as the sandwiched class are still interested in the hybrid housing type.

Source : Channel NewsAsia – 10 Jul 2015

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