Housing experts say the supply rate of executive condominiums (EC) into the housing market can afford to slow down, as some 20 per cent of units launched as part of seven EC projects this year remain unsold.
“I think EC units would have probably hit the ceiling in terms of amount, so I probably think this year we will hit close to about 4,000 being supplied to the market,” said Donald Han, special advisor at HSR Property Group.
“We think we can go steady, to a little bit slower in terms of the EC component.”
There have been about 10 EC projects this year, with three more to be launched by the end of December.
As of October this year, with the launch of the seven projects, almost 3,000 EC units have been sold. About 800 units are still unsold.
By year’s end, with the launch of three more EC projects, more than 2,400 units will be available.
The government also launched six EC land sites in the second half of this year, which would see over 3,000 units being built.
In addition, five land sites slated for launch in the first half of 2013 will bring another 3,100 units on stream.
Experts add with land costs increasing, the prices of EC units have also gone up.
However, they are still cheaper than private condominiums, by about 20 to 30 per cent.
Source : Channel NewsAsia – 16 Dec 2012