This comes as the COVID-19 pandemic caused bottlenecks in the construction supply chain, which led to higher costs.
ERA Realty expects prices of executive condominium (EC) projects to be launched this year and in 2022 to be higher.
This comes as the COVID-19 pandemic caused bottlenecks in the construction supply chain, which led to higher costs. The COVID-related safety measures set to be implemented for construction workers are also anticipated to add to the development costs.
ERA expects five new EC projects with around 2,800 units in total to be launched in the next three years.
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The 700-unit Parc Central Residences will be launched first in 2021, followed by Provence Residence at Canberra Crescent.
“The prices of four of the five EC projects at which the developers acquired the land varied within a narrow range of $555 to $578 per sq ft per plot ratio (psf ppr), which were similar to the range of land prices of three EC projects that are currently on sale in the market, namely Piermont Grand, Parc Canberra and Ola,” said ERA.
Piermont Grand, Parc Canberra and Ola’s average land price is $572 psf ppr, which is similar to the $572 psf ppr average land price for the upcoming Parc Central Residences and Provence Residence EC projects.
“However, rising development costs due to the COVID-19 pandemic could pressure the developers to launch the new EC projects at higher prices.”
ERA expects the median prices of upcoming EC projects to be higher than the current price of $1,114 psf transacted at the launched EC projects.
“Therefore, homebuyers who are waiting for prices of new EC to decline due to the pandemic would be waiting in vain,” it said.