Strong interest in Lush Acres

Strong interest in Lush Acres

    By Wong Siew Ying
    POSTED: 16 Jul 2013 4:41 PM

Lush Acres, a new 380-unit executive condominium (EC) project in Sengkang, has received strong interest from home hunters.

SINGAPORE: Lush Acres, a new 380-unit executive condominium (EC) project in Sengkang, has received strong interest from home hunters.

City Developments says the project has been oversubscribed by 1.6 times since it opened for application over the weekend.

Application closes on 21 July and bookings will be conducted on 17 August.

In view of new EC guidelines introduced earlier this year, Lush Acres will not have any dual-key unit or penthouse with private roof terraces.

Prices of units will be announced at a later date, but some analysts expect the average price to range between S$730 and S$750 per square foot.

Lush Acres is the fourth EC project to be launched in Singapore this year.

Interest among homebuyers continues to be strong as ECs are typically more affordable than private condominiums.

ERA, one of Lush Acres' marketing agents, says recent curbs on property loans, such as the new Total Debt Servicing Ratio (TDSR) framework, are unlikely to affect EC sales.

ERA Realty Network's key executive officer, Mr Eugene Lim, said: "The new measures by MAS are actually targeting multiple-property owners. EC buyers cannot be owning multiple properties.

"So, if you are first-time buyer, this is the only home you are buying, and if you are an upgrader, you basically sign an undertaking to sell your HDB flat when you take possession.

"So, it is quite unlikely that this group of buyers is affected by the TDSR ratio of 60 percent, unless they are already living a very highly geared lifestyle from non-property loans, which is not likely the case. I would perceive most, if not all, EC buyers are not affected by this TDSR ruling."

The four EC projects that have been launched so far this year - Forestville, Twin Fountains, Ecopolitan and Lush Acres - will offer 1,963 units.

And market watchers expect three more EC projects to be launched by year-end, which will likely yield another 1,368 units.

But those projects will also be subjected to new guidelines on private roof terraces and restrictions on the maximum unit size, among others.

Alan Tan, HSR head for project advisory, said: "Buyers today demand more, they want more, they want something different. That is the kind of lure that developers are trying to provide. Not too long ago, some even built private jacuzzis for EC projects. These are all creativities that developers are looking into to sort of replace big roof terraces or private enclosed space, for that matter."

Analysts say EC developers can still be creative while working within the government's guidelines. And a lot of it will involve designing better living spaces and incorporating lifestyle elements into the projects.

For example, Channel NewsAsia understands that SkyPark Residences in Sembawang will likely feature two-storey maisonettes and roof-top gardens.

Similarly, Waterwoods EC in Punggol will have maisonette units.

And Sea Horizon at Pasir Ris could offer many units with sea view.

Analysts say once these projects are rolled out, home buyers may have to wait till the second half of next year for new EC launches.

Knight Frank's associate director & head for consultancy & research, Ms Alice Tan, said: "Since the January announcement of the 15-month marketing rule, there were only two EC sites that were being sold, in April and May.

"So, these two projects can be launched at the earliest, end of 2014 or maybe early 2015. With this anticipation or pent-up demand, this could support or push EC home prices for these upcoming launches."

HSR estimates that EC prices could climb marginally by 1 to 2 percent this year.

- CNA/ir

- wong chee tat :)