Big buzz surrounds the upcoming launch of the 546-unit Lake Life EC in Yuan Ching Road, considering the lack of any executive condominium launches in the Jurong area for more than 15 years.
According to a spokesman from PropNex Realty, the last three EC launches in the region – Floravale, Summerdale and Westmere – took place in 1996 and 1997, and have since been fully privatised.
“Jurong is an area which has been starved of new EC supply for over a decade,” the spokesman said.
Not surprisingly, the site on which Lake Life EC is to be built was hotly contested back in July 2013, attracting strong participation from 16 competing bidders, with the winning bid of $418 per square foot per plot ratio (psf ppr) submitted by a consortium comprising Evia Real Estate, BBR Development, CNH Investment and OKP Land.
This is higher than other bids submitted over the last two years for EC sites in the country, which have been in the range of $350 and $400 psf ppr on average, which translates to an average selling price of between $750 to $850 psf.
Prices of some recently launched ECs
| Launch date | Project name | Location | Median price ($psf) |
| November 2013 | Waterwoods | Punggol | $797 |
| November 2013 | SkyPark Residences | Sembawang | $790 |
| August 2013 | Sea Horizon | Pasir Ris | $818 |
| July 2013 | Lush Acres | Sengkang | $790 |
| June 2013 | Forestville | Woodlands | $730 |
| June 2013 | Ecopolitan | Punggol | $793 |
Source: PropNex Research
Located near Lakeside MRT station, prices for Lake Life EC will likely be below $900 psf, noted the spokesman.
Booking of units are expected to take place in early November and the project is predicted to obtain TOP by 2017.
Meanwhile, the consultancy feels that ECs have become a more compelling segment for HDB upgraders and middle-income new home buyers, who are not the target of many of the property cooling measures.
“Under the TDSR framework, a buyer wishing to upgrade from his current HDB flat can probably get a bigger housing loan for an EC purchase, rather than a private property; this is because the HDB monthly mortgage payment will not be factored into TDSR calculations when banks assess the amount of loan they grant to an EC buyer,” the spokesman explained.
Most importantly, Lake Life EC is one of the last ECs that won’t be affected by the new Resale Levy Policy for ECs, introduced by the government last December, which means potential buyers can save up to $50,000 when they purchase an EC (depending on the type of HDB flat owned previously), he added.
In a nutshell, PropNex believes the widening price gap between mass market homes and ECs, the partial exemption from the new TDSR framework and the availability of housing grants make ECs even more affordable than before.
Additionally, with the recent focus of the URA Draft Master Plan 2013 and Prime Minister Lee Hsien Loong’s National Day Rally speech on the west, the consultancy expects the outlook for Jurong to be rosy, as more housing developments complete and new residents move into the region.
Aside from quick access to the city via the AYE and PIE, the area is served by three MRT stations – Jurong East, Chinese Garden and Lakeside. There are also many schools nearby as well as entertainment options like JEM, JCube and the upcoming Jurong Gateway. Future attractions include the new Jurong Lake Gardens and Science Centre.
Image: Artist’s impression of the new Lake Life EC.
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
