Rivercove Residences EC News
26 January 2018 – Friday
Latest update executive condominium news from source of Housing Development Board (HDB) website that the provisional tender results of Sumang Walk has been postpone from end January to 27 February 2018, Tuesday after 5.15pm. The results of this tender bid is highly observe by many developers and future buyers as this will impact the subsequent launch price of ec in Singapore. The supply of existing executive condominium has drop significantly with left with the North region ie, Woodlands and Yishun. The last year launch ec at Choa Chu Kang Ave 5, Inz Residence EC is fully sold last week and with no news of any reserve site for ec anytime soon. Another project, Sol Arces with 1300 units launch before Inz Residences around the same area was also fully sold. This left no more ec supply in the western area. It is forecast before the launch of Sumang Walk, all the ecs in Singapore including Rivercove Residences will be fully sold and that left Punggol Site the only one. The tender bid will not be surprise if it is awarded at land bid around $500ppf, which is higher than Anchorvale EC by close to $150 psf higher. If this is such, the selling price of Sumang Walk will hit $1000 psf. For instance, 1000sqft 3 bedrooms, buyers probably have to fork out additional $150,000 if they waited for this new Punggol ec instead. However, even if this is priced still its acceptable compared to the current property market. If compare Rivercove Residences ec (averagely $900 psf) with Parc Botannia Pte (averagely $1250psf) it is $350 psf different which buyers save around $350k for a 3 bedrooms. As compare to Sumang Walk ($1000psf), buyers still catch a steal of pricing. However by the time Sumang Walk Ec launch, if there is still available units at Parc Botannia it will not be $1250psf. As always mentioned, executive condominium is only for the privileged, with a NEW 3 bedrooms units starting from $780,000 at Rivercove Residences, it is impossible to get one brand new in the Private sector market.
Recent change in the time frame of executive condominium show that the government is giving more time allowance and leeway to developer for sell their units. Instead of the usual four years time frame, it has extended to five years starting from the new land site at Sumang Walk in Punggol area, Singapore. This new land site has started launched by the Housing & Development Board (HDB) under the confirmed list of GLS Programme. Rivercove Residences is the last executive condominium which follow the four years time frame. Buyers can expect their TOP to be earlier compare to the upcoming new launch later.
The new executive condominium at Sumang Walk in Punggol attracted at least 18 developers which wanted to secure the latest land. Not surprise to receive this response as the shortage of ECs supply in the next 12 to 18 months. The market has seem bullish in the upcoming years contributed to the bid price. It is mentioned in the Straits Time news that “A reasonable top bid in the tender for this site could range from $358 million to $385 million, or $410 to $440 per square foot per plot ratio price (psf ppr),” Mr Mak said. It is said to even surpass this per square foot price of the overwhelming response. If this is as said, the selling of psf once launch should reach averagely of $900-$950.
If any interested buyers who wish to purchase an executive condominium at Northeast region of Singapore, Rivercove Residences at Anchorvale Lane, Seng Kang is definitely a good choice in term of right entry time and shorter waiting period.
The intention of Singapore Government move to raise the income ceiling of buying an executive condominium from the initial of $12,000 to capping of $14,000 allowing more people to have additional choice of selection of house to choose from. Basically EC is much suitable for “sandwich” income class of buyers. This group of homeowners belong to income earners with a combine gross salary between $12,000 to $14,000 which are unable to qualify for new Build to Order flats under the HDB Eligibility. Before the increase of income cap, this group of buyers choice is either resale HDB Housing Flat at a open market price or Private Condominium which has no restriction. These regulation has been for years and recent year on January 2013, MAS introducing new financing loan calculation – Mortgage Service Ratio (MSR). The objective of this measure is moderate the property market and to instill financial prudence to cultivate an affordable and sustainable ECs market. MSR impose capped 30% of the borrower’s monthly income for loans taken from banks or financial institution. Before that, banks are using Total Debt Service Ratio (TDSR) as calculation which used 60% of the borrower’s monthly income instead.
For example, a young married couple at age of 30 with monthly income of $5,000 each are able to roughly loan about $668,000. If they are using this amount as their 80% loan, their maximum purchase price $835,000 assuming they do not have any other credit loans. This calculation is based on MSR. Otherwise, using previous financial calculation TDSR applied, the couple could have easily loan double the amount having the said same gross salary income. It does works to provide homeowners very comfortably in affording their home without overstretch within their means. However, it does not mean that earning this income, home buyers are unable to purchase any other more premium house. For instance, middle aged income family which is interested in getting an 5 bedrooms executive condominium with the price $1.4m. Their loan amount probably will have a shortfall of $400,000 to max 80%. It is still affordable to buy Rivercove Residences if the couple have this shortfall to top up using either cash or cpf.
*Source from Straits Time Business