North Gaia EC achieves 27% sales at an average of $1,302 psf
As of 7 p.m. on April 24, North Gaia, the first executive condominium (EC) complex to open this year, had sold an approximate 164 units. This represents a 26.6 percent take-up rate out of a total of 616 units at the EC project on Yishun Close. According to developer Sing Holdings, the average price of units sold was $1,302 psf, with 62 percent of units purchased using the deferred payment system costing 3 percent more than those purchased under the usual progressive program.
84.5 percent of the apartments acquired were three-bedroom homes ranging in size from 958 to 1,076 square feet. Four-bedroom homes with 1,313 to 1,389 square feet made up 9.9% of the units, with five-bedroom units with 1,593 square feet accounting for the remaining 5.6 percent. In fact, nine of the 14 five-bedroom units were picked up over the weekend, indicating that the larger three-bedroom units were in high demand.
“HDB upgraders made up two-thirds of the buyers, and the majority of the units sold were the larger units, indicating a strong need for additional space,” says Mark Yip, CEO of Huttons Asia.
A total of 1,045 parties expressed interest in the e-application when it concluded on April 19. 364 checks were deposited in the ballot box on balloting day (April 22). As a result, the 163 units sold represent a 44.8 percent conversion rate.
Despite the high level of interest in the project, one of the roadblocks was the mortgage servicing ratio (MSR), which only applies to HDB and EC buyers: It is restricted to a maximum of 30% of gross monthly household income. “Even if EC prices have risen by over 60% in the last five years, from around $800 per square foot to $1,300 per square foot today, the MSR has remained stable at 30%,” says Ismail Gafoor, CEO of PropNex. “That was one of the biggest roadblocks we ran into on the ground.” We were expecting a higher level of interest in North Gaia.” However, for upcoming private residential new launches like Lentor Modern, this roadblock will not be an issue.
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