Case Study: Lilydale EC 84% gain in value
January 30, 2020
Till date, there has been more than 70 EC developments in Singapore. Whilst a common theme across ECs is that they offer a very good value, it is perhaps more useful to look at the data of an actual EC, several years after its completion, in order to have a true indication of its price performance over the long term.
EXECUTIVE CONDOMINIUMS AROUND PARC CANBERRA
Taking a look at the developments near Parc Canberra, there are a number of executive condominiums, with the most recent being Northwave, completed in 2019, and the oldest being One Canberra, completed in 2015.
Having been so recently completed, there is insufficient data for us to use these developments as a way to assess the long term performance of Executive Condominiums.
We need a longer timeframe for analysis – an EC development that has been completed for at least 10 years or more. This is keeping in mind that at launch, ECs fall strictly under HDB Eligibility conditions, after an initial 5 year MOP period, they become semi-privatised and can be sold to Singaporeans and Singapore Permanent Residents. After another 5 years, they become fully privatised and just like private condominiums, can also be sold to foreigners.
This means that although the initial pool of investors into an EC is limited, over time, the pool of potential investors into an EC expands into a larger and larger audience.
This is important because it means that the EC has an increasing price potential as it matures.
LILYDALE EXECUTIVE CONDOMINIUM
A better case study for us to examine, which not only offers more data but is also in a similar geographical area, would be the Lilydale Executive Condominium.
Here are some quick facts about Lilydale:
- Address: Yishun Ave 6
- Distance from Yishun MRT: approx. 1.65km
- Completion: 2003
- No. of units: 318
- Land Size: 14,399sqm
- Tenure: 99 years from 2000
Having been completed since its TOP in 2003, Lilydale offers us more than 16 years of data to analyse, and is a much better candidate to assess the performance of an Executive Condominium over the long term.
The following chart shows the growth of psf (y-axis), over time (x-axis).
With the exception of a few outliers, it is immediately obvious that the price was on an upward trajectory from launch and it has maintained its upward movement till after the 10-year mark, following which it begins to experience a slight correction.
Taking a closer look at the actual transaction data, the average psf of Lilydale in 2001 when it was released as a new sale, was $353.
Across 2018 and 2019, the average psf was $652.
This translates to a 84% increase from 2001 to 2019.
Whilst past results are not a guarantee of future performance, this analysis nonetheless illustrates the price growth potential that is possible for an Executive Condominium.
If you are keen to tap on this opportunity and know more about Parc Canberra, leave us a message and we’ll be in touch.