Friday, October 26, 2012

Prices of exec maisonettes to rise further

The few remaining executive maisonettes (EMs) in Singapore will likely see further price rises as the government does not intend to build such properties anymore, analysts said.

Recently, these properties which are quite rare created much buzz for fetching record-high prices, in particular a unit in Bishan.

In fact, four out of eight units sold this year that breached the S$900,000 mark were EMs, reported The Straits Times.

The large two-storey units have become highly desirable in the past few years thanks to the rising price gap between HDB flats and private property, and a wave of collective sales that have encouraged wealthy buyers to look for bigger units.

But the Housing and Development Board (HDB) stopped building these flats, which are sized between 138 and 243 sq m. In total, there are 65,000 executive flats, of which EMs form one group.

Due to sky-high prices of EMs, MP Gan Thiam Poh (Pasir Ris-Punggol GRC) asked if the housing board would continue building them.

Last Tuesday, National Development Minister Khaw Boon Wan said that his Ministry will no longer build EMs because executive condominiums (ECs) offer a wider range of housing options for Singaporeans.

However, according to Mr Gan, “if they don’t build any more, prices for this particular type of flat will keep rising”.

Colin Tan, Research Head at Chesterton Suntec International, said that the scarcity of EMs will continue to boost their prices. He also predicted that these homes “will follow the path of HUDC units”.

View the original article here

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