The top bid of S$509.37 million for the Sumang Walk EC site was won by City Development (CDL) and TID Residential. This works out to a record S$583 per square foot per plot ratio, which translates to a selling price of above S$1,000 per square foot.
Launching in 2019, it is likely to be the only executive condominium (EC) to be launching in 2019. We explain the 5 reasons why it will be another sell-out like Rivercove Residences, which was fully sold out in a mere 5 months after its launch in March 2018.
|Project name||New EC at Sumang Walk (Punggol district)|
|Developer||City Development (CDL) and TID Residential|
|Tenure||99 year leasehold|
|TOP||2022 – 2023|
|Total number of units||820|
|Unit mix||3 – 5 bedrooms (sizes to be confirmed)|
|Facilities||13 blocks in total
Full fledged gymnasium
50 lap pool and children’s pool
BBQ pits and gourmet pavilion for residents
In this article, let’s analyse the 5 reasons why our analysts at PropertyInvestSG believes it will be another sell out.
1) High demand but limited supply of executive condominium units
As of October 2018, there are no available EC units in the market except for bounced out units. These units are “returned” to the developer should there be a disqualification in family nucleus eg divorce or annulment of marriage that happens.
Below are the latest status as of October 2018 for the ECs launched since 2013.
MOP refers to Minimum Occupancy Period which residents have to fulfil after collecting their keys before they are allowed to sell their units in the open market, except for special cases that have been granted pre-approval by HDB.
|Name||District||Address||TOP date||Number of units||Status|
|Prive||Punggol||Punggol Field||17-Jul-13||680||Just MOP|
|Esparina Residences||Woodlands||Buangkok Drive / Compassvale Bow||11-Sep-13||573||Just MOP|
|The Canopy||Yishun||Yishun Avenue 11||14-Jan-14||406||MOP up in 2019|
|Austville Residences||Sengkang||Sengkang East Avenue / Buangkok Drive||22-Apr-14||540||MOP up in 2019|
|Belysa||Pasir Ris||Pasir Ris Drive 1 / Elias Road||28-May-14||315||MOP up in 2019|
|RiverParc Residence||Punggol||Punggol Drive / Punggol East||19-Jun-14||504||MOP up in 2019|
|Arc @Tampines||Tampines||Tampines Avenue 8||5-Aug-14||574||MOP up in 2019|
|Blossom Residences||Bukit Panjang||Segar Road||5 Sep 2014||602||MOP up in 2019|
|Watercolours||Pasir Ris||Pasir Ris Drive 3 / Pasir Ris Link||31-Dec-14||416||MOP up in 2019|
|The Tampines Trilliant||Tampines||Tampines Central 7||6-Feb-15||670||MOP up in 2020|
|The Rainforest||Choa Chu Kang||Choa Chu Kang Drive||6-Mar-15||466||MOP up in 2020|
|Twin Waterfalls||Punggol||Punggol Way / Punggol Field||2-Jun-15||728||MOP up in 2020|
|One Canberra||Yishun||Yishun Avenue 7 / Canberra Drive||19-Sep-15||665||MOP up in 2020|
|Heron Bay||Hougang||Upper Serangoon View /||7-Oct-15||394||MOP up in 2020|
|Upper Serangoon Road|
|Waterwoods||Punggol||Punggol Field Walk / Punggol East||1-Dec-15||373||MOP up in 2020|
|Waterbay||Punggol||Punggol Central / Edgefield Plains||27-Jan-16||383||MOP up in 2021|
|[email protected]||Tampines||Tampines Central 7 / Tampines||3-Feb-16||514||MOP up in 2021|
|Avenue 7 / Tampines Avenue 9|
|Twin Fountains||Woodlands||Woodlands Avenue 6 /||14-Mar-16||418||MOP up in 2021|
|Woodlands Drive 16|
|The Topiary||Sengkang||Fernvale Lane||22-Mar-16||700||MOP up in 2021|
|Forestville||Woodlands||Woodlands Avenue 5 / Woodlands Drive 16||1-Apr-16||653||MOP up in 2021|
|Lush Acres||Sengkang||Sengkang West Way / Fernvale Link||30-Jun-16||380||MOP up in 2021|
|SkyPark Residences||Sembawang||Sembawang Crescent / Sembawang Drive||10-Aug-16||502||MOP up in 2021|
|Ecopolitan||Punggol||Punggol Way / Punggol Walk||29-Aug-16||512||MOP up in 2021|
|Sea Horizon||Pasir Ris||Pasir Ris Drive 3 / Pasir Ris Rise||7-Oct-16||495||MOP up in 2021|
|The Amore||Punggol||Punggol Central / Edgedale Plains||28-Nov-16||378||MOP up in 2021|
|Lake Life||Jurong West||Yuan Ching Road / Tao Ching Road||30-Dec-16||546||MOP up in 2021|
|Bellewoods||Woodlands||Woodlands Avenue 5 / Woodlands Avenue 6||16-Mar-17||561||MOP up in 2022|
|The Vales||Sengkang||Anchorvale Crescent||2-May-17||517||MOP up in 2022|
|Bellewaters||Sengkang||Anchorvale Crescent||3-May-17||656||MOP up in 2022|
|The Terrace||Punggol||Punggol Drive / Edgedale Plains||25-May-17||747||Just collected keys|
|Signature at Yishun||Yishun||Yishun Street 51||14-Jul-17||525||Just collected keys|
|Westwood Residences||Jurong West||Westwood Avenue||24-Oct-17||480||Just collected keys|
|The Brownstone||Sembawang||Canberra Drive||30-Oct-17||638||Just collected keys|
|The Criterion||Yishun||Yishun Street 51||26-Feb-18||525||Just collected keys|
|Wandervale||Choa Chu Kang||Choa Chu Kang Drive||14-Mar-18||534||Just collected keys|
|Parc Life||Sembawang||Sembawang Avenue||29-Mar-18||628||Just collected keys|
|Sol Acres||Choa Chu Kang||Choa Chu Kang Grove||12 Mar 2018 *||1237||Just collected keys|
|26 Apr 2018 *||Just collected keys|
|The Visionaire||Sembawang||Sembawang Road / Canberra Link||14-Jun-18||632||Collecting keys soon|
|Treasure Crest||Sengkang||Anchorvale Crescent||14-Sep-18||504||Collecting keys soon|
|Under construction EC||Location||Street address||Estimated||Units|
|Northwave||Woodlands||Woodlands Avenue 12||Feb-19||358||Fully sold
|iNz Residence||Choa Chu Kang||Choa Chu Kang Avenue 5||Aug-19||497||Fully sold
|Hundred Palms Residences||Hougang||Yio Chu Kang Road||2020||Fully sold
|Rivercove Residences||Sengkang||Anchorvale Lane||2020||628||Fully sold
|Sumang Link EC||Punggol||Sumang Walk||2022 to 2023||Launching in 2019|
From the list above, we see there the government had slowed down sales sites for ECs since 2015 and in the recent years.
It had always been an average of 6-7 ECs launched every year, except in 2012 where a bumper crop of 11 ECs were released for sale by developers.
With the increasing affluence of young Singaporean couples and families, the income ceiling cap for an EC was raised from S$12,000 to S$14,000 a month. An EC is hence a viable choice for young families who wish to live in a condominium.
2) The big boom in District 19
District 19 encompasses Punggol, Sengkang, Serangoon Gardens and Hougang.
The price trend in D19 has been rising since 2011. In October 2010 it was transacting around S$822 psf and in September 2018 it has risen to an average of S$1,268 psf. That’s a 55% rise over the past 8 years, translating to an average rise of 6.7% annually.
Rivercove Residences and Treasure Crest are the only 2 ECs in Punggol in the above sales chart and as we see above, some units were transacted above 1,000 psf.
Over on the secondary market, we see projects near the Sumang Link EC transacting between S$945 and S$1,192 psf.
Is Sumang Link EC’s estimated selling price of $1,000 psf still competitive? Compared with the new launches of private condos in D19, naturally S$1,000 psf appears competitive.
When ranked next to resale condos in the secondary market, we see that most of the resale condos in the area have an average median price of S$1,100 to S$1,400psf, except for Prive and The Quartz.
3) Government masterplan of Punggol
There has been extensive plans for the next chapter of Punggol’s development in the next five to 15 years and beyond which shall include seafront public housing, an expanded town centre, more green parks and corridors, as well as a pedestrian-friendly heritage trail.
The Punggol Digital District has also been identified as a key element in the government’s plan in Singapore to build a Smart Nation.
In the near term, the government is expecting to relocate cyber security, data analytics, artificial intelligence firms and other digital technologies and key growth industries to Punggol. This is expected to create another 28,000 jobs in the region.
4) And who can resist waterfront living?
Who can resist affordable waterfront living? Imagine a nice stroll along the serene Punggol Waterway in the evenings or bringing your family to cycle or have a picnic on the weekend.
5) Huge upside in ECs after the 5 year mark
For buyers who want to know the capital appreciation of an EC, Prive is an excellent recent example. It is an EC launched in 2010, and TOP in 2013. It had recently attained its minimum 5 year occupancy fulfillment (MOP), which means it can now be sold in the open market to Singaporeans and Singapore Permanent Residents (SPRs).
For perspective, it was previously sold for $660 per sq ft to $690 per sq ft (psf) in 2010 when it was launched.
Assuming the median price at launch for Prive to be S$675 psf, this is an estimated S$270 psf gain for an average unit sold, hence translating to a 40% gain for the first buyer. This means a profit of S$270,000 for the first owner of Prive for an average 3 bedder 1,000 square feet unit!
Since keen on finding more about your eligibility for an executive condo? As well as the S$30,000 CPF grant? Or would you like to be the first to be updated on Sumang Link EC? Sign up below for more information!