Yishun EC sells 20% of units

Signature at Yishun, the first executive condominium (EC) launched after the government raised the qualifying income ceiling to $14,000 from $12,000, sold about 20 percent of its units after opening for bookings last Saturday, reported Channel NewsAsia.

“There are buyers whose income is more than $12,000. The percentage I would estimate is 20 percent of our total sales,” said Patrick Lam, CEO of JBE Holdings.

“This year is Singapore’s SG50 celebrations. We wish to assist buyers to achieve their dream home at affordable prices.”

Located at Yishun Street 51, the 525-unit project received 507 e-applications.

Majority of the units sold were three- and four-bedroom units, said the developer, adding that two-bedders were also available.

Prices at the project are around $750 psf, lower than average prices at other ECs which are about $800 psf.

Although the developer described the response as encouraging, one analyst believes that an application rate of under one buyer per unit is a clear indication of a weak market, given the price as well as the fact that the income ceiling has increased by around 16 percent.

“Perhaps the market is weak partly due to the global environment and stock market, the currency situation not being very favourable. But some of the buyers may also be concerned about interest rates that are continuing to rise as well as their employment security.

“Furthermore, in the next few months we can expect a few more EC launches, plus the existing launched but unsold stock of about 4,000 over units. I think that will allow buyers to go around Singapore to look for whatever is the most suitable,” said Century 21 CEO Ku Swee Yong.

Meanwhile, The Criterion, another EC project in Yishun, opened for online applications last Thursday, 24 September.

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg