Slowdown in EC market after new rules

Sales for executive condominiums (EC) slowed following new rules such as tighter loan rules for those buying EC units.

Some agents said EC units, which are typically sold out in a year, may now need another year to hit 100 per cent sales.

The Skypark Residences project released in November last year has sold only 60 per cent of its units so far.

Another development, Waterwoods, launched in the same month, hardly made a splash with close to 40 per cent sold.

Agents said past launches typically see up to 80 per cent of units sold within a month of opening.

Jeffrey Hong, chief executive officer of Global Property Strategic Alliance, said: “The cooling measures are here to ensure a stable and sustainable property market, and the objectives have been achieved. Therefore, I think the lifting of cooling measures perhaps may be towards the end of the year. It is a bit too soon to say now.”

Figures from the Urban Development Authority showed that out of the 3,337 units from seven EC projects launched last year, almost 970 remain unsold.

The next EC project will be launched in the third quarter of this year, after a new rule stated developers can launch their units for sale only 15 months after the sites are awarded.

Source : Channel NewsAsia – 8 Feb 2014