Sales of completed executive condominiums (ECs) in Singapore’s resale market recorded increased interest from foreign buyers in the January – November 2011 period, according to a report in The Business Times.
Property market research firm R’ST Research said foreigners, including PRs, acquired 383 resale ECs during the period, more than the 322 units purchased for the whole of 2010. This accounts for 49 percent of the 775 resale ECs transacted last year, an increase from the 33 percent recorded.
Ong Kah Seng, Director at R’ST Research, said the buoyant sales activity in the EC market can be attributed to attractive pricing.
“Various EC projects were launched from end 2010 and received good buying interest amid the economic slowdown,” he said. “In fact, due to a significant run up in private condominium prices translating to record selling prices, ECs became an attractive alternative.”
About 108 EC transactions were made by non-PR foreigners, more than twice the 49 units acquired in 2010.
According to data for the first 11 months of 2011, mainland Chinese buyers acquired 151 resale EC units, followed by Indian nationals at 118 units and Malaysians at 62 units.
Joseph Tan, Executive Director for Residential at CBRE, said one of the key reasons for the increase in foreign interest include ECs’ attractive pricing, with prices of resale units approximately 13 percent below those of private resale homes in similar locations.
Meanwhile, the supply of ECs will be ramped up this year, with government plans to release sites that will yield up to 5,000 EC units.
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