04-08-2012, 11:24 AM
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The Straits Times
www.straitstimes.comPublished on Aug 04, 2012
ECs enjoy pricing edge over condos
Construction costs are lower for ECs but they are subject to HDB rules
By Esther Teo property reporter
LOWER construction costs have given executive condominiums (ECs) a pricing edge as developers chase buyers in a competitive market.
Cheaper building expenses mean firms can pitch the units at levels below that of private apartments, but that initial price gap narrows as an EC gets closer to completing its minimum occupancy period and resale restrictions ease.
ECs - an upmarket hybrid of public and private housing - can be built for about 22 per cent cheaper than their private counterparts, according to a sample of projects studied by Square Foot Research. This lower cost is partly why EC projects are typically priced about 25 per cent below comparable private mass market homes, experts say.
This discount also takes into account the Housing Board (HDB) rules and household income cap of $12,000 a month that apply to EC units. Such factors are priced in by developers and often mean an initial lower land cost.
Square Foot Research looked at six EC projects and found the average construction cost was $209 per sq ft (psf) per plot ratio (ppr) - well under the average of $256 psf ppr for nine recently launched mass market private developments that it also studied.
The construction cost - derived from disclosures from listed contractors - does not include costs from piling work and typically reflects a project's features and furnishings.
ECs often have fewer frills while private projects tend to differentiate themselves from others in terms of architectural design and extra facilities.
Chris International director Chris Koh noted that the gap in construction costs could also be due to ECs opting for multi-storey carparks rather than the more expensive basement ones.
Take the Arc at Tampines, an EC with 574 units. It has a seven-storey carpark with 574 parking spaces while private condo Waterview just around the corner has a basement carpark with 744 spaces for residents of its 696 flats.
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The Straits Times
www.straitstimes.comPublished on Aug 04, 2012
ECs enjoy pricing edge over condos
Construction costs are lower for ECs but they are subject to HDB rules
By Esther Teo property reporter
LOWER construction costs have given executive condominiums (ECs) a pricing edge as developers chase buyers in a competitive market.
Cheaper building expenses mean firms can pitch the units at levels below that of private apartments, but that initial price gap narrows as an EC gets closer to completing its minimum occupancy period and resale restrictions ease.
ECs - an upmarket hybrid of public and private housing - can be built for about 22 per cent cheaper than their private counterparts, according to a sample of projects studied by Square Foot Research. This lower cost is partly why EC projects are typically priced about 25 per cent below comparable private mass market homes, experts say.
This discount also takes into account the Housing Board (HDB) rules and household income cap of $12,000 a month that apply to EC units. Such factors are priced in by developers and often mean an initial lower land cost.
Square Foot Research looked at six EC projects and found the average construction cost was $209 per sq ft (psf) per plot ratio (ppr) - well under the average of $256 psf ppr for nine recently launched mass market private developments that it also studied.
The construction cost - derived from disclosures from listed contractors - does not include costs from piling work and typically reflects a project's features and furnishings.
ECs often have fewer frills while private projects tend to differentiate themselves from others in terms of architectural design and extra facilities.
Chris International director Chris Koh noted that the gap in construction costs could also be due to ECs opting for multi-storey carparks rather than the more expensive basement ones.
Take the Arc at Tampines, an EC with 574 units. It has a seven-storey carpark with 574 parking spaces while private condo Waterview just around the corner has a basement carpark with 744 spaces for residents of its 696 flats.
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