Artist’s impression of Parc Life EC in Sembawang.
The Parc Life executive condominium (EC) in Sembawang will open for e-applications this Saturday (16 April), one week after The Visionaire EC in the nearby Canberra Link hit the market.
Jointly developed by Frasers Centrepoint Limited (FCL) and Keong Hong Holdings, the 628-unit project is located beside the upcoming SkyPark Residences EC and Canberra Park.
The 99-year leasehold EC consists of seven residential blocks of two- to five-bedroom units, with average prices ranging from $770 psf to $800 psf. Floor areas range from 753 sq ft to 1,550 sq ft, and every bedroom can fit a queen-sized bed. Approximately 78 percent of the total units are three-bedders.
Nearby amenities include the Sembawang MRT station and bus interchange, and Sun Plaza mall. The completion of the North-South Corridor in 2021 will also enhance the area’s connectivity.
Cheang Kok Kheong, CEO of FCL’s Development and Property division, expects to see strong demand for Parc Life despite the large number of EC projects in Sembawang.
“We believe there is healthy demand from HDB homeowners who have achieved the minimum occupation period (MOP) and are looking to re-invest or upgrade.
“Approximately 70 percent of the buyers we are targeting are first-time buyers and upgraders living within a 3 km radius in Yishun, Woodlands and Sembawang, while the remaining 30 percent would comprise homeowners currently living along the North-South MRT Line,” he noted.
The Straits Times reported that Parc Life will be competing against Qingjian Realty’s The Visionaire. Launched last Friday (8 April), the 632-unit EC attracted more than 400 e-applications over the weekend.
But unlike The Visionaire, which touts itself as Singapore’s first EC with smart homes, Parc Life is not tech-infused. Cheang said this is because the current hard-wired smart homes systems do not provide for flexibility, while wireless alternatives are still being developed.
“In a survey we conducted, we do not see a significant demand for smart homes. Therefore, we are focusing on providing homeowners with quality finishes and unique unit layouts while leaving them the flexibility to customise and install their own smart home system to match their lifestyles.”
The e-application period for Parc Life will close on 24 April, while the booking of units will start on 30 April. Completion is expected by Q1 2018.
Meanwhile, a report from OrangeTee indicates that the EC market started the year on a high note, with Wandervale at Choa Chu Kang selling 292 out of its total 534 units. This was followed by the launch of The Visionaire, and now Parc Life.
The consultancy estimated that the number of unsold ECs reached 3,637 units as of March 2016, but the number is expected to dwindle next year, given the lack of new launches forecasted for 2017.
Although upcoming EC projects may be launched at lower prices to entice buyers, it is unlikely that developers will offer significant discounts across the board, given the limited pipeline and healthy take-up in the past few years.
In 2015, developers collectively launched 3,750 EC units and sold 2,550 units. This translates to an average take-up rate of about 68 percent, compared to 63 percent in 2014. But this is still lower than the 107 percent seen in 2013, when the units sold outnumbered launches.
Another reason why developers are unlikely to cut prices is because there is still plenty of time left before they have to sell all their units under the ABSD rules, and most previously launched projects have recorded healthy sales.
“The EC projects launched in 2013 or earlier are mostly sold out, and the earliest ABSD deadline for projects launched in 2014 would be in Q2 2018. Furthermore, the majority of EC projects launched in 2014 are at least 50 percent sold,” the report added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
