Executive Condo Hard Truth What Why & Where Its Heading

2. Disclaimer:
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no responsibility can be accepted for any loss of inconvenience caused by any error or omission. The
ideas, suggestions, general principles, examples and other information presented here are for reference
and educational purposes only.
This presentation is not in anyway intended to give investment advise or recommendations to buy, sell or
lease properties or any form of property investment. PropNex shall have no liability for any loss or
expense whatsoever, relating to investment decisions made by the audience.
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3. A QUICK GLANCE
HDB

4. Period Resale Price Index Q-on-Q change
4Q 2014 137.0 -1.5%
1Q 2015 135.6 -1.0%
2Q 2015 135.0 -0.4%
3Q 2015 134.6 -0.3%
4Q 2015 134.8 +0.1%
1Q 2016 134.7 -0.1%
2Q 2016 134.7 0%
3Q 2016 134.7 0%
4Q 2016 134.6 -0.1%
1Q 2017 133.9 -0.5%
2Q 2017 133.7 -0.1%
HDB PRICE INDEX (LAST 10 QUARTERS)
Source: HDB

5. PRIVATE RESIDENTIAL PRICES
(Q-on-Q)
YEAR PRICE INDEX OVERALL %
Q1 2016 140.6 -0.7%
Q2 2016 140.0 -0.4%
Q32016 137.9 -1.5%
Q42016 137.2 -0.5%
2016 overall -3.1%
Q12017 136.7 -0.4%
Q2 2017 136.6 -0.1%
Q3 2017 137.7 +0.5%
Source: URA
+0.5%Flash Estimate

6. A QUICK GLANCE
PRIVATE RESIDENTIAL

7. Land Bits & it’s impact
on the market ?
Government Land Sales

8. Aggressive Land Bids
2017

9. Projected Launch Price

10. Comparison West Coast Vale Site
Land Bid in 2015 vs 2017
Developer bid 7% more in 18 monthsfor the same location.
What does this signal?

11. Price Trend in Various Regions ($ PSF)
Region 2015 / 2016 2016 / 2017 Expected 2018
Core Central Region $2,000 $2,200 - $2,500 $2,500 - $3,000
Rest of Core Central $1,500 $1,550 - $1,700 $1,700 - $1,900
Outside of Core Central $1,000 $1,150 - $1,300 $1,400 - $1,500
Executive Condominium $750 $800 - $830 $830 - $880
DBSS $550 $550 $550
HDB Resale $400 $400 $400
BTO $250 $250 $250

12. En Bloc Sales in 2017

13. (Residential)
Collective Sales 2006 to 2017
YEAR VALUE (S
$M)
No. Of
Deals
2017 5333
(5.333 Billion)
12
2016 1005.45 3
2015 380.00 1
2014 160.00 1
2013 1216.01 16
2012 1453.70 25
2011 3214.57 51
YEAR VALUE (S
$M)
No. Of
Deals
2010 1820.85 38
2009 100.80 1
2008 346.53 8
2007 11,515.96 88
2006 7,821.15 78

14. Collective Sales 2017
S/N Project Name Developer Price
Purchase
1 One Tree Hill Gardens Lum Chang Holdings Limited $65 million
2 Rio Casa HUDC Oxley Holdings, KSH Holdings, Lian Beng
Group and Super Group’s Teo Family
$575 million
3 Goh&Goh Building BBR Holdings $101.5 million
4 Eunosville HUDC Jardine Matheson Group unit, MCL Land $765 million
5 The Albacca Sustained Land $69.12 million
6 Serangoon Ville HUDC Oxley Holdings $499 million
7 Tampines Court Sim Lian Development $970 million
8 208 Yio Chu Kang Road Oxley Holdings 8.4 million
9 Sun Rosier Sing Hai Yi Properties $271 million
10 Nanak Mansions UOL Associate $201.1 million
11 Jervois Gardens SC Global $72 million
12 Amber Park Hong Leong Group $906.7 million
13 Normanton Park Kingsford Huray $830.1 million
As of 11th October 2017

15. Source: The Business Times (18072017)

16. Source: TODAY paper (25072017)

17. Source: The Straits Times (18072017)

18. Source: The Business Times (20022017)

19. Source: The Business Times (2702017)

20. Source: The Straits Times (2702017)

21. Source: The Business Times 24042017

22. Source: The Business Times (16032017)

23. Source: The Straits Times Online (1203017)

24. What does this signal for the
property market today?

25. PIPELINE OF SUPPLY OF PRIVATE RESIDENTIAL UNITS
Source: URA

26. IMPROVED HOME AFFORDABILITY

27. Source: The Business Times 04072017

28. WHEN IS A GOOD TIME TO BUY…
WHY ?

29. Executive
Condominium
Market Outlook

30. ECs DISCOUNTED PRICE
Based on PropNex research, new EC launches are usually priced 20 to
25% lower than private condos, thus proving largely popular among middle
income couples or upgraders who find prices of condos prohibitive
Source: PropNex research, URA
Project
Name
Westwood
Residences
Lakeville The Vales
High Park
Residences
Area Jurong Sengkang
Launch
date
May-15 Apr-14 Jul-15 Jul-15
Type EC Condo EC Condo
Avg. price
(PSF)
$803 $1,309 $790 $989
Price
difference
(%)
38% 25%

31. Source: The Business Times (24072017)

32. Today (27/04/14)

33. Today (27/04/14)

34. Source: The New Paper, 24 Jul 2017

35. Source: straitstimes.com, 16 Aug 2017

36. Source: businesstimes.com.sg, 28 Sep 2017

37. Source: businesstimes.com.sg, 28 Sep 2017

38. Source: The Straits Times, 18 April 2015

39. Source: businesstimes.com.sg, 28 Sep 2017

40. Source: businesstimes.com.sg, 28 Sep
2017

41. Source: businesstimes.com.sg, 28 Sep 2017

42. EC LAND BIDS (2016)
Source: PropNex research, URA
Date Location Bid winner $psf Name of EC
29 Feb
2016
Yio Chu Kang Rd Hoi Hup Realty Pte Ltd $ 331.00 Hundred Palm
5 Sep
2016
Anchorvale Lane
Hoi Hup Realty Pte Ltd and Sunway
Developments Pte Ltd $355.00
Not launched
yet

43. 16 Bids for Sengkang EC site

44. Source: www.propertynet.sg, 2 Oct 2017

45. PROJECT SOLD (%)
NO. OF UNITS
SOLD
NO. OF UNITS
AVAILABLE
Northwave 67% 242 116
Criterion 81% 411 94
Brownstone 97% 625 12
Visionaire 98% 622 10
Inz Residence 82% 409 88
2,309 320
Executive Condomium as at 10th October 2017
88% SOLD 12% ONLY

46. Availability by Type
PROJECT 2-BEDROOM 3-BEDROOM 4-BEDROOM 5-BEDROOM PENTHOUSE
Northwave SOLD 116 SOLD SOLD SOLD
Criterion SOLD 74 20 SOLD SOLD
Brownstone SOLD 12 SOLD SOLD NA
Visionaire SOLD 9 1 NA NA
Inz Residence SOLD 88 SOLD SOLD NA
299 21 FULLY SOLDFULLY SOLD FULLY SOLD

47. Availability by Type & Price Starting From
PROJECT 2-BEDROOM 3-BEDROOM 4-BEDROOM 5-BEDROOM PENTHOUSE
Northwave SOLD
116
$717k
SOLD SOLD SOLD
Criterion SOLD
74
$677k
20
$844k
SOLD SOLD
Brownstone SOLD
12
$747k
SOLD SOLD NA
Visionaire SOLD
9
$797k
1
$1,004k
NA NA
Inz Residence SOLD
88
$769k
SOLD SOLD NA
299 21FULLY SOLD
93% 7%
FULLY SOLDFULLY SOLD

48. Why buy EC?

49. Source: Business Time, 25 Apr 2014

51. Why new EC?
o Typical 20% to 30% before a fair market price
o Developer margin extremely low as compare to
private condo developer launch
o Consider 1st Property Loan even through there is
O/S HDB Loan
o Auto Remission of ABSD
o Good step towards wealth enhancement

52. Choices in Life

53. Executive
Condominium
HDB
Upgrade from HDB to EC
+ Commercial Property
+ Overseas Property
+ Retirement Fund

54. HDB
EC
ORC / RCR / LANDED
+
ORC ORCOR
Upgrade from HDB to EC
After 5 to 10 Years
Own 2 Properties!

55. HDB
- Limited Potential for Capital Appreciation
- Restricted to Foreigners
- Restricted Asset
- Meant to Provide Basic Housing Needs
& Keeping Pace with Sustainable
Growth on Long Term
- Create Potential
- Open to Foreigners after 10 Years
- Asset Class Property Can Gear Up on Its Value
- Meant to Meet the Aspiration of Singaporeans
Who Wants to Soar to Greater Heights
Executive
Condominium
VS

56. - Buying at Value
- You Need the Market to Move Up to
See the Profit / Capital Gain
- Some Risk
- No Restriction
- Fully Asset Class
- Buying Below Value
- Entering the Market at a Profit of 20% - 30%
- Less / No Risk as Buyer Only Offer Loss When
Market Fall Below 20%
- All Restrictions Lift After 10 Years
- Fully Asset Class After 10 Years
Executive
Condominium
VS Condominium