Piermont Grand EC in High Demand
This Sumang Walk, Piermont Grand EC has gathered much attention!
has already manage to get everyone’s attention the past few weeks. Having attracted a record $509.37 million bid from developers, it’s likely that the eventual condo will be one of the most expensive in the area. The estimated breakeven price, when the developers start selling, will very likely be above $1,000 per square foot. This could make it the first million dollar EC site in the certain area. That’s affecting the way buyers perceive some other properties already
How does this Sumang Walk EC compares to Rivercove Residences
As some Internet conversations are showing, the prospect of a million dollar EC has caused some buyers to roll their eyes. Rivercove Residences (launched in 1 April 2018) is often singled out as an alternative: Why buy the Sumang Walk EC for a minimum of $1,000 per square foot, the argument goes, when Rivercove Residences is likely to be more priced attractively?
The known fact is, just about every other EC starts looking like good value for money, when you mention Sumang Walk EC. This is especially the full case for older, appreciated ECs – some of these have appreciated to around $1,100 per square foot right now, with the added advantage they are nearer to privatisation (ECs are fully privatised following the 10th year).
We may back be turning the clock
Getting a unit at Piermont Grand EC situated Sumang Walk is going to be a stable investment
Remember 2012? At the right time, EC prices got so high that Minister of National Development then, Mr. Khaw Boon Wan, stepped into send a sharp message to developers directly. hence, getting a unit at Piermont Grand EC situated Sumang Walk is going to be a stable investment as well as for own stay
At the right time, an EC penthouse at Heron Bay sold for $1.77 million; and there is a presidential EC penthouse in Tampines that sold for $2.05 million (it was bought with a “typical middle income family”. Really, that’s what they told the newspaper).
At the very least, this caused Mr. Khaw Boon Wan to warn developers to your investment fundamental premise of the executive condominium” “not, while these were busy looking to observe how much buyers would pay just.
Then, as now, ECs are a thrilling concept – buyers can get CPF grants still, so it’s often viewed as “subsidised private housing”. Through the upswing in the house market (which would peak in 2013), it was clear buyers would pay crazy sums, and developers were pleased to accommodate that.
With Singapore’s property market recovering, and the income ceiling on ECs raised to $14,000, we might visit a repeat event.
A matter of your time before older condos (whether they’re ECs or not) also see some price hikes
If ECs ‘re going to start achieving the million dollar mark, a huge segment of buyers shall decide, what on earth, they could as well buy full-fledged condos that exist for your price. As such, some suburban condos in the $1 million to $1.2 million range may be seen as viable alternatives (see point 1: the price is about the same, and these condos are already private).
This won’t last forever. Over time, the prices of those full-fledged condos are going to creep up. A lot of it will also be due to sellers’ mindsets (i.e. how can my private condo only be worth as much, or less, than your EC?)
We shall have to start reassessing the notion that ECs are always a good investment
If you’re buying an EC for a true home, don’t worry about this bit. But if you’re thinking of your EC as an investment, it might be time to question the underlying assumptions.
Yes, this Sumang Walk EC is a fantastic deal
Logically, it’s similar to getting a private property but comes with CPF grants. But given how inflated the prices are becoming, are you certain still room for appreciation there’s? There’s more risk involved certainly, given the bigger cash outlay* and steep prices increasingly. If you have a million or more to spend, a full-fledged condo might be a better investment.