During last year’s Q4, the vacancy rate among Singapore’s prime condominium units were at 11.5%. This data was from the report made by Urban Redevelopment Authority. Recently, the same agency said that the vacancy rate increased to 15.1 last Q1 of 2015.
As of this writing, there are about 2,500 executive units that are still sitting empty. The market is still looking for investors who would like to buy these completed units. Others however, already have their respective owners who haven’t moved in yet for some reason.
About 50% of those who are looking for EC units are those who would live to have an upgraded place to live in. As soon as they get the keys to their EC units, they have to sell their current property in a span of 6 months. Unfortunately, many are having a hard time doing so because of the resale price. Thus, these supposed-to-be new owners of EC units often ask for extension since they can’t afford to move in just yet.
As a matter of fact, there about 56 EC buyers requested for extension last year. For every quarter, there were about 14 extension requests in 2014. These extension requests immediately increased during this year’s first quarter. From 14, it went up to 29 requests from buyers.
While the vacancy rate increased, Century 21 is still positive that the market for executive condominium properties is still attracting more and more buyers. More than half of the buyers are interested in these ECs mainly because they want to utilize it as a profitable rental property. Some who do not wish to move in immediately simply buy these EC units as part of their investments. This includes overseas buyers or young adults who still prefer to live at their parents’ house and not in a rush to move out just yet.