EC sites command higher bids

EC sites command higher bids

    By Wong Siew Ying
    POSTED: 12 Aug 2013 5:25 PM
 
Land prices of executive condominium (EC) sites grew at a faster pace compared with other private residential developments in the last three years.

SINGAPORE: Land prices of executive condominium (EC) sites grew at a faster pace compared with other private residential developments in the last three years.

SLP International Property Consultants says its research showed that land prices of 99-year leasehold mass-market condos rose 40 percent in the past three years.

That's lower than the 50 percent rise in land prices for EC sites sold by the government over the same period.

Recently, an EC plot at Yuan Ching Road in Jurong drew a record bid of S$272.8m due to its attractive location.

That works out to about S$419 per square foot per plot ratio.

Moving forward, analysts expect developers to be more careful with their bids as demand for new homes has slowed after the implementation of the Total Debt Servicing Ratio framework on 29 June.

Land bids for EC sites could also moderate, say analysts.

SLP International Property Consultants' executive director Nicholas Mak said: "For EC land prices, I don't expect them to trend upwards from its current level.

"S$400 per square foot per plot ratio for quite some time has been a ceiling for EC land prices. As long as the government doesn't increase the household income (ceiling) of potential buyers of ECs, it will in effect curb the purchasing power of buyers.

"So, developers will probably be more cautious and moderate in the bids for the five EC plots that are on the Government Land Sales programme for the second half of this year.

"They are in a more average kind of location and so the bids that they will attract will also probably be below S$400 per square foot."


- CNA/ir

- wong chee tat :)