Almost 2,500 EC units sit empty

Posted on 1 Jun 2015 | Comments Off on Almost 2,500 EC units sit empty

After slipping to 11.5 percent in Q4 2014, the vacancy rate in the executive condominium (EC) market started to increase again in the first quarter of this year to 15.1 percent, according to data from the Urban Redevelopment Authority (URA) and reported in the media.

In fact, there are 2,446 vacant EC units in the market. These refer to completed units that were not sold or units which have been acquired but were left unoccupied by owners – probably because they need more time to move in.

Usually, ECs attract HDB homeowners looking to upgrade their homes. They account for about 50 percent of those buying ECs. HDB rules give these upgraders six months within which to sell their current flats, after collecting the keys to their new units.

But given the falling resale prices of HDB flats, more EC buyers are finding it harder to sell their units.

As a result, HDB is seeing more requests for extension.

Last year, it received a total of 56 extension requests from EC buyers, which works out to an average of 14 requests per quarter. But in Q1 2015, the housing board received 29 such requests.

Nonetheless, the rising vacancy rate may also suggest that the EC market is attracting investors since most EC projects were fully sold, said property firm Century 21.

“We also sense that there are many who are investors in ECs, they are not buying the ECs because they want to live in it. They are buying the ECs for probably a financial investment motive and having taken the keys. They are probably still staying with their parents or they are staying elsewhere and they are not moving in,” said Ku Swee Yong, chief executive officer of Century 21 Singapore.

Although ECs are developed and sold by private property developers, buyers can still receive a maximum grant of $30,000 per household. After 10 years, these units become privatised and can be sold to foreigners.

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$1.5 mill commission from record condo sale

Posted on 1 Jun 2015 | Comments Off on $1.5 mill commission from record condo sale

A young property agent by the name of Shirley Seng would have received a hefty commission of about $1.5 million after selling a penthouse at Le Nouvel Ardmore for $51 million in April 2015, media reports said.

The transaction at the 43-unit freehold condominium is believed to be a local record-setter, with the penthouse sold to Alibaba’s co-founder Sun Tongyu, a Singapore permanent resident. Read more > SOLD: $51 million Ardmore Park penthouse

According to the PropNex agent, the tycoon was referred to her by a client whom she had previously served at Marina Bay Residences. Despite having less than five years of experience in the job, Seng was able to get to know wealthy clients as she had brokered several rental deals in the Marina Bay and Orchard areas.

Even though the 26-year-old agent has already become an overnight millionaire, Seng said she doesn’t plan to take a break.

“This deal is good money, like hitting the jackpot. But this is my lifelong career; if I go for a long holiday now, I may lose my clients when I return,” said the Nanyang Polytechnic graduate.

In fact, she brokered another seven transactions this month, in addition to the 16 she recorded in April. It is estimated that she made about $1.7 million in commissions from 53 deals since joining PropNex in January, but most of them involved leasing.

She previously worked at HSR International Realtors for four months, and spent another four years at ERA Realty.

When asked for her secret in dealing with affluent clients, Seng said that property agents should be time-conscious. “Speed is crucial. I always try to get back to them within one to two hours. I want to let them know that they are my priority.”

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