Altura EC sells 61% of its apartments on the first day, setting a new high average price of $1,433 psf

A joint venture between developers Qingjian Realty and Santarli Realty have announced they had sold 360 units of the Altura executive condominium (EC) located in Bukit Batok West Avenue had been sold 220 units (61.1%) at the closing of the launch on 5 August. The project is believed to have had an average cost of $1,433 per sq ft.

“The project has achieved an average price of $1,433 per sq ft, which is a record for the launch price of the first time for EC project,” says Ismail Gafoor PropNex’s CEO. PropNex. “The New benchmark prices was a test of the buyers’ affordability threshold but based on the number of units purchased of today’s launch it appears that the price for the majority of units falls within the budget of potential buyers.”

Lumina Grand EC by CDL Zenith outbid its competition with a top bid of $336.068 million, narrowly beating Sim Lian Group by just 0.17%.

The six-unit Copen Grand ECC located at Tengah Garden Walk, a joint venture that was co-developed by City Developments and MCL Land which was officially launched in October and was sold out in December 2022 for an average of $1,334 per square foot. A 616-unit Tenet EC also a joint venture of Qingjian and Santarli it was launched in December, and was 100% sold in July for an average of $1,382 per square foot according to caveats that were lodged.

Get complete information about the entirety of ECs and their average profits at 5, and 10 years

“The massive interest in Altura was to be expected since it could be the sole EC launch for 2023.” states Marcus Chu the chief executive officer of ERA Singapore. “Copen Grand EC which was launched in the fourth quarter of 2022, was sold out in just one month.”

Based on Yen Chong who is the deputy general manager at Qingjian Realty, Altura is the first EC in Bukit Batok in over 20 years. The most recent EC debut within Bukit Batok took place at Bukit Batok’s The Bukit Batok Dew located at Bukit Batok Street 21 which took place in May 2001.

“We have a significant amount of untapped demand from first-time and second-time home buyers,” says Chong. “Altura’s strategically located location is a major factor in its attractiveness. It’s located within a 1km radius from ACS [Anglo-Chinese Primary School, which makes it a popular choice for families looking to be near well-known schools.” ACS Primary will be moving from Barker Road to Tengah in 2030. It will become a co-ed school starting in 2030.

There are restrictions, however a the deferred payment option is can be arranged
An hybrid property, ECs are designed by developers with finishes, fittings and amenities that are similar to other private condominiums. “Many newlyweds and families are attracted to ECs since they share the look and feel like a private condo but are designed to be owners-occupier,” says ERA’s Chu. “Investors are not permitted from buying brand new launches of ECs because they are only available to buyers who satisfy the criteria for eligibility.”

However purchasers from ECs must meet HDB qualifications in the form of the household income limit and 30% the mortgage service ratio (MSR) and the minimum period of occupation (MOP). After an MOP for five years the EC owner is limited to selling the EC only to Singapore residents or permanent residents. After that 10th anniversary of the MOP, can the EC be offered to foreigners in the same manner as an ordinary 99-year leasehold condo.

Initial buyers of ECs are likely to reap “a enormous gain” after they’ve fulfilled their 10-year MOP according to Mark Yip, CEO of Huttons Asia. A recent study conducted by Huttons Data Analytics showed that the average gains after MOP was more than $300,000.

“ACS Primary’s decision to move to Tengah by 2030 is anticipated to provide Altura another increase in its prices,” says Yip.

The maximum monthly income for households to purchase ECs can be as high as $16,000. New EC buyers are not eligible for HDB home loans, but they must get loans from banks to fund their purchases. Banks will employ a moderate-term rates of interest that are 4% for calculating the amount of loans to be offered to customers. “This might limit the amount of loan a buyer is able to obtain and could need them to pay additional cash upfront,” PropNex’s Gafoor points out.

But, EC buyers can take advantage of an option called the Deferred Payment Scheme (DPS) that gives buyers more flexibility and gives them time to pay for their down payment. Gafoor says that the majority of buyers who attended Altura’s launch went on the DPS.

“Overwhelming” demand from second-timers
According to EC regulations that just 30% of units are given to second-timers and HDB upgraders in the time of a new launch for one of the EC project. HDB takes those who are second-timers to comprise those who bought an HDB on the resale marketplace or Built-to Order and have enjoyed an aid to housing. The quota for second-timers is removed after 30 days.

More than 70% of the electronic applications and ballot tickets that were received came from applicants who had applied twice before.

The demand was “overwhelming” According to PropNex’s Gafoor. the entire the 108 spaces (30%) allotted to newcomers to Altura filled within 3 hours – at 1pm on the very first day of the launch on 5 August.

Second-time buyers who purchase ECs get a free remission in advance of stamp duty that is added by the buyer According to Huttons Yip. “HDB upgraders need to sell their flat after they have completed Altura this means that they are able to remain in their homes.”

Demand from second-timers is ‘overwhelming’
According to EC regulations according to EC rules, just 30% of units are given to second-timers and HDB upgraders in the new launch of the EC project. HDB takes the second timers to include those that bought an HDB on the resale marketplace or Built-to Order and have received an aid to housing. The second-timers quota is removed after 30 days.

More than 70% of the electronic applications and ballots received were from applicants who had applied twice before.

The demand was “overwhelming” according Gafoor from PropNex. the entire the 108 unit (30%) allotted to newcomers to Altura completed within three hours, and by 1pm on the day of the launch on 5 August.

Second-time buyers who purchase ECs receive a remission upfront of stamp duty that is added by the buyer According to Huttons Yip. “HDB upgraders need to sell their current flat after they have completed Altura and, therefore, they can stay in their homes.”