The units built in Northwave have received low sales despite them attracting a large number of re-applications. A total of 20 odd units were sold on the first day out of the 358 units in the project. It is this statistics that have raised eyebrows among the real estate agencies and market watchers and consequently raised speculations on reasons that might have propelled this turn of events. Among the worst sold projects in the first launch include the Parc Life that sold 51 units out of a possible 628 launched and The Criterion where 41 units out of 505 units were sold. From these statistics, it is evident that Northwave has performed decimally. The impending question is why this EC project has registered low sales, and as it will be discovered later, other EC projects launched in the past have also performed poorly.
It is not the first time that EC projects have experienced unexpected sale contrary to the strong online application. Northwave is located strategically near industrialized areas, MRT station, and Woodland Regional Centre. Therefore, it is safe to conclude that the vicinity has nothing to do with the low sales volume. The next question to inquire what is happening to Executive condominium, or EC projects and why the case is replicated in other EC projects.
First and foremost, it is important to note that Northwave EC units are in the same location with two complete ECs in Woodvale and NorthOaks. These ECs have been there for a decade now and have an established brand name. Woodvale was developed by CapitaLand while NorthOaks is a project by a private owner, Hong Leong’s. On the other hand, Northwave is a project by Hao Yuan Investment Company that has developed four residential projects in Singapore. However, these projects are also not doing well. In 2012, these investors were denied to sell units in one of their units in Forestville. They, however, decline the instructions by the Urban Redevelopment Authority and went ahead to launch the project but gave a non-sale instruction to real estate agents.
Additionally, there are notable units of unsold blocks in Woodvale and NorthOaks that were earlier launched EC projects. The projects being the neighbors of Northwave EC seem to follow the same suit. The instructions by Singapore Controller of Housing have largely contributed to the lack of sales of most EC projects.
It might be high time for the stakeholders to review the relevance of EC projects and the impacts they have on real estate. It is not wise to keep launching EC projects, and yet these units largely remain unsold. It is obvious that the EC traffic in Singapore’s real estate market is flooded and there is a need to devise solutions that will clear the traffic. The authorities have a mandate to review the EC schemes so that they are transformed into profitable and attract a good number of eligible buyers.
This will be made possible if all the stakeholders sit at a negotiation table and look into the question why units at Northwave EC are not selling well are and then suggest the best way forward.