The MM2H visa program was launched by Malaysia’s Tourism Ministry to provide for expatriates looking to invest or retire in Malaysia. Malaysia provides the visa permit applications, property sourcing and even domestic worker applications for Sol Acres.
Experts predict Executive Condominiums will fall but not by muchCiting weakening sales in the EC Sector and low winning bids for EC sites. Executive Condos prices are expected to fall, as quoted by experts in Singapore’s local media. However, the homebuyer should not expect to see a significant change in price.
Sol Acres Executive Condo Prices
The cooling market has affected condominium prices as shown recently by 2 EC site sales.
The 1st was sold at Woodlands Avenue 12 for $103.8 million ($278 psf ppr), while at the Rivervale Crescent went for $157.8 million ($280 psf ppr), during that Sol Acres same month.
These 2 prices were the lowest executive condominium land sales recorded since July 2011. The $279 psf ppr was well below the average Executive Condo list Price of $351 psf ppr, which was set in 2014; this number was also lower than the price in 2013, which peaked at $360 psf ppr. This was only a slight increase though over the $321 psf ppr that was recorded in 2012. This comes from a recent JLL property price analysis for Sol Acres EC.
Site Prices are Sol Acres
The 2 sites have an estimated breakeven cost of around $650 psf.
JLL’s National research director Ong Teck Hui was quoted as saying “they can easily sell well below $800 psf and still make a decent margin.””
On the other hand, EC’s new sale prices have been on an upward spiral for the past few years and ending the year 2014 at $820 psf, which was up from $783 psf from the previous year, and even better than 2012’s $739 psf.
Over 2,251 EC units remain unsold after the launches in this year alone an additional 6,500 units are expected to be completed and put on the Sol Acres market.
Sol Acres Prices
Prices of private homes that are softening also have placed pressure to drive PC prices down. This gap between private home and executive condominium must be maintained to keep them attractive to buyers, remarked Ong.
The sluggish sales may force prices to be adjusted downward from 5 to 8% to achieve significantly better sales for Sol Acres.
However many executive condominiums are located on sites that were purchased at higher prices originally. This leaves developers with little wiggle room to lower prices without sacrificing their profit margins.
If you add to that, the construction costs have increased using foreign labor constraints as well as prefabrication requirements, added CBRE’s Desmond Sim, Research Head for Singapore and Southeast Asia Sol Acres.
So, developers that brought land at low cost and reduce unit prices may still be sold at the current benchmark prices albeit with room for markdowns, said Sim.
This is the preferred solution as it maintains the value for the whole development he went on to say.