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EC market not set for hot streak despite strong demand for Lake Life: Analysts

SINGAPORE – Following its launch to very keen market demand a week ago, Lake Life, an executive condominium (EC) in Jurong, is now close to three times over-subscribed and looks set to break the previous record number for EC e-applications.

SINGAPORE – Following its launch to very keen market demand a week ago, Lake Life, an executive condominium (EC) in Jurong, is now close to three times over-subscribed and looks set to break the previous record number for EC e-applications.

As of yesterday (Oct 11), the 546-unit EC has received over 1,600 applications, exceeding or approaching previous highs including last year’s Sea Horizon with over 1,500 applications and 2012’s Heron Bay with 1,664 applications. Lake Life’s e-application will end today.

Analysts speaking to TODAY believe that Lake Life is drawing strong demand because it’s the first EC launched in Jurong since 1997, but its stellar performance so far does not necessarily reflect robust demand for ECs going forward.

“Buyers are primarily attracted by the government’s strong promotion of the Jurong area as a choice residential location, and Lake Life’s price of around S$890psf is still lower than private condos in area, which fetch around S$1,000psf,” SLP International’s executive director of research and consultancy Mr Nicholas Mak said. “But we’re looking at around 15 ECs that will be launched in the next one and half year, during which sales will gradually come down I believe.”

Lake Life is one of the three EC launches slated for September and October, which combine to over 1,700 units. This adds to the slew of supply launched over the past three years particularly in the North such as Yishun and Woodlands, Century 21’s Singapore chief executive Mr Ku Swee Yong said.

“The record breaking applications for Lake Life is probably a one-off in the EC market, which is having a bit of an over-supply right now… That is why a recent land tender for a Sembawang EC site only received two bids,” he said.

Against this backdrop, the government should reassess its policies for EC, Mr Ku noted, saying that ECs – which are public-private housing projects subsidized by government – are unfair for Singapore’s taxpayers.

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