Tenet EC's Success and the Resilience of Singapore's Property Market

Tenet EC's Success and the Resilience of Singapore's Property Market

The recent launch of Tenet EC, an executive condominium (EC) in Tampines, highlights the strength and resilience of the property segment, despite cooling measures, higher mortgage rates, and an economic slowdown. Selling 72% of its 618 units on launch day at an average price of S$1,360 per sq ft (psf), Tenet EC reflects robust demand in the area, mirroring the strong sales of Copen Grand EC in Tengah Town, which sold 73% of units on its launch day.

This robust performance is particularly noteworthy given the launch occurred in December, when potential buyers often travel overseas. The high demand for Tenet EC can be attributed to its attractive location within a mature estate, proximity to the upcoming Tampines North MRT station and Bus Interchange, and integration with a future mixed-use development site. Additionally, the large price gap between ECs like Tenet and private housing market offerings makes it an appealing option for potential homeowners.

The strong sales numbers indicate that the area is in high demand, attracting HDB upgraders and second-time buyers. Under EC rules, only 30% of a project's units can be allocated to second-timers at launch, and this quota was maxed out for Tenet EC. It is expected that the development will be fully sold when sales open to more second-time buyers in a month's time.

In conclusion, the success of Tenet EC's launch suggests that the macro housing market remains resilient, even in the face of challenges such as cooling measures and higher mortgage rates. The popularity of this development and its surrounding area, as well as impressive sales records, emphasize the stable demand for and attractiveness of the property segment. Given the tight supply of ECs expected in 2023, the market may experience increased competition and a sustained interest in these developments. With upcoming EC projects in areas like Bukit Batok West Avenue 8, the housing market is poised to maintain its steady performance while adapting to evolving conditions.