Is the executive condominium market immune to the pandemic?

ERA Research & Consultancy department released a report on the Executive Condominium (EC) market in Singapore. The report provides an introduction to this hybrid housing type and analysed the median price trend, sales volume and effect of the 2018 cooling measures on the EC market.

The main findings of the report are as follow:

• Based on median transacted prices of EC in the primary market, the growth of EC prices started in the fourth quarter of 2006, driven by factors stable economic growth, rising household income and increased eligibility income ceiling. EC prices also weathered the impact of the Covid-19 pandemic in 2020 as median prices grew 4.0% year-on-year in the last quarter of 2020.
• Two EC projects, namely Parc Canberra and Ola, with a total of 1,044 units were launched for sale last year. From preliminary figures, real estate developers sold 955 uncompleted EC units in 2020, more than the new EC sales volume in 2018 and 2019. However, the total number of new EC transacted in 2020 was lower than the 5-year annual average sales from 2015 to 2019, partly due to the declining stock of EC available for sale.
• The new round of market cooling measures introduced by the government in July 2018 slowed down the demand for EC. EC projects launched before the 2018 cooling measures enjoyed faster rate of sales than those projects launched after July 2018.
• The report concludes with an outlook on the EC market, especially on how the land prices of EC projects under development and economic impact of the pandemic would affect the future prices of EC.

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Nicholas Mak is the head of research & consultancy at ERA Realty Network Realty