SINGAPORE – Developers sold a whopping 596 executive condominium (EC) units in April, compared with the 72 units sold in the previous month.
The strong EC sales was on the back of the Rivercove Residences launch in Sengkang. Its developer, a Hoi Hup Realty -Sunway Developments joint venture, sold 512 units last month at a median price of S$970 per square foot.
This is the only EC launch this year, soaking up pent-up demand after the sell-out launch of Hundred Palms Residences EC in Yio Chu Kang last year.
This brings the total number of unsold EC units to just 193 as of April 2018.
These remaining units are likely to sell out in the next few months.
There will be no further supply of new ECs till the next launch at Sumang Walk in Punggol, towards the second half of 2019.
In terms of fresh EC sites, there is only one EC site scheduled for tender in June 2018. Even if more sites are going to be allocated for ECs, developers have to wait 15 months (or after the completion of foundation works, whichever is earlier) before putting the units on sale.
All these factors will contribute to a severe shortage of EC supply in the market, and this will put upward pressure on prices in the coming months.