Property developer Sim Lian’s latest executive condo (EC), The Tampines Trilliant, has seen strong interest with approximately 1,000 applications received for its 670 units when the application period closed on 31 January.
The news has come as a surprise to some, considering that prices for its four-bedder units start at a high price of S$971,000 each for 1,302 sq ft of living space; the price works out to around S$745 psf.
While the project’s location at Tampines Central is attractive, some potential upgraders have their reservations. 48-year-old personal assistant Diana Khoo, said, “It’s overpriced…I’d rather buy in the private market as there are fewer restrictions. The location is good but that doesn’t justify its pricing. Besides, Tampines is so crowded and congested – more so than some of the more mature estates.”
Business manager Jonathan Yap, 33, feels such a unit might be worth the price if it were the best accommodation one could find and if his workplace were in the area, more so if one could buy it for rental purposes. He said, “(As a) rule of thumb, monthly rental rate should cover outlay in 20 years. If an owner is considering (a unit costing) S$1 million, he needs to charge a S$4,200 monthly rent. If he can charge higher, it’s worth it.”
Still, the application rate indicates that a good number of buyers, whether or not they feel the price is justified, have decided to fork out cash for units at The Tampines Trilliant. PropertyGuru’s real estate analyst Tejaswi Chunduri said, “The demand for The Tampines Trilliant is expected to be strong due to the location.”
“Also, with the income ceiling for new ECs being reviewed, first-timers and other genuine home buyers who would otherwise go for mass market condominiums will now come back to public housing and ECs specifically which provide condominium-like facilities.”
“Moreover, ECs perfectly fit buyers who are ineligible to buy HDB flats due to the income ceiling but find private property too expensive. Generally, ECs are around 20 percent cheaper than mass market condominiums.”
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