2 Nov 2014
Despite red-hot initial interest from buyers, Jurong Lake District’s Lake Life project is going on sale at prices slightly below the initial indicative level.
Lake Life is the first new executive condominium (EC) in Jurong in 17 years and, earlier this month, broke records for the most e-applications for an EC.
But EC rules that took effect last year have placed borrowing restrictions on buyers. Lake Life is one of three ECs to be launched since cooling measures were imposed on ECs last year.
The development is going on sale at an average $857 psf, a discount from its indicative market pricing of $880 to $890 psf.
Unit prices for the 99-year leasehold project in Yuan Ching Road will range from $799 to $930 psf, giving the developers, a consortium led by Evia Real Estate, a 6 per cent profit margin, instead of its previous 10 per cent target.
ECs are a public-private housing hybrid where buyer eligibility is restricted to Singaporeans, with a minimum five-year occupation period before the unit may be sold on the open market.
Mr Vincent Ong, managing partner of Evia Real Estate, said the lower price factors in a shrinking market resulting from a cap on the Mortgage Servicing Ratio (MSR) for housing loans for purchase of EC units.
“The name of the game is affordability,” Mr Ong said yesterday. “Developers are now resizing their approach to look at dollar amounts rather than a per square foot price because banks lend at a quantum despite the square foot price.”
That is why the developer has decided that 84 per cent of units in Lake Life’s five towers will be priced below $1.1 million.
Lake Life’s $857 psf price is also lower than that of nearby private condos such as Lakeville by MCL Land, where units are selling for an average of $1,328 psf.
Earlier this month, Lake Life received a record 1,853 e-applications for 546 units. Typically, only one in 10 applications leads to a sale, said Mr Ong. “But because it’s Jurong, I expect 15 per cent will convert.”
Lake Life showflats will be open for viewing tomorrow, and Mr Ong expects to sell half the units on the first weekend. Bookings for Lake Life begin on Nov 8.
Two more ECs will also commence sales within the next two weeks: Qingjian Realty’s Bellewoods in Woodlands opens for bookings tomorrow with an average price just shy of $780 psf, while Qingjian’s Bellewaters in Sengkang launches next Friday.
Prices for Bellewaters have not been released, but the indicative price range is $750 to $820 psf.