More than 1,200 applications for Lake Life EC

SINGAPORE — Despite the sluggish property market, house hunters are flocking to the launch of the latest executive condominium (EC) in Jurong, the first in 17 years to be launched in the area.

The 546-unit Lake Life — built on a site that attracted a record bid for EC land last year — saw more than 1,200 e-applications as of yesterday within only three days of its launch.

Analysts said the keen interest came as no surprise given the property’s location, which will serve pent-up demand from upgraders and first-time home owners who aspire to own private properties, but find condominiums out of their reach. The district’s image was also given a shot in the arm recently when Prime Minister Lee Hsien Loong announced plans for the creation of the Jurong Lake Gardens during the National Day Rally in August.

However, it remains to be seen whether the high e-application rates would translate into actual sales, given the potential dampener from the Total Debt Servicing Ratio requirements, analysts said.

Analysts estimate the prices for Lake Life units to range from S$880 to S$890psf based on the winning bid of S$418.53 per square foot per plot ratio by Evia Real Estate.

However, Century 21 chief executive officer Ku Swee Yong said larger units, such as the four-bedroom flats, could go for about S$750psf.

A 1,400sqf unit could cost about S$1.1 million, making it relatively affordable for a Jurong resident seeking to upgrade from a five-room Housing and Development Board flat, he said.

The majority of the units were allocated to four-bedroom units, which signalled the developer’s intention of attracting second-timers in and around Jurong to give them the opportunity to upgrade, analysts said.

“It’s quite clear that they’re targeting families, quite possible upgraders whose families have grown,” said Mr Eugene Lim, key executive officer at ERA.

Mr Chris Koh, director of Chris International, added: “We have not seen EC launches for a while and we had a lot of buyers waiting. Location is not too bad, there’s a lot of talk about transforming Jurong into another gem of Singapore, (so) I think many people would flock to that area.”

Mr Lim noted that Lake Life was more affordable, compared with other options in the area. For example, the transacted price of Lake Front Residences averaged about S$1,300psf, while Lake Ville units cost about S$1,330psf. However, he was cautious as to whether buyers would ultimately bite. A family with a household income of S$12,000 — the income ceiling for buying an EC — could afford anything priced between S$800,000 and S$1 million.

If a four-bedroom unit at Lake Life sold at prices predicted by analysts, it could be out of reach after taking into account the Mortgage Servicing Ratio and Total Debt Servicing Ratio, he said.

Mr Ku also sounded a cautionary note to upgraders. “Second-timers must consider the fact by the time they collect their keys and sell their current HDB, the HDB resale value may drop by 10 per cent in the next three years. In that case, your financial planning ... cannot cut it too thin,” he said.

The launch of Lake Life comes after the launch of Bellewoods EC in Woodlands on Sept 27. As of Sept 28, developer Qingjian Realty received close to 400 e-applications for the project, which was the first new EC launch after almost a year-long hiatus.