EXECUTIVE CONDOMINIUMS (Plans for development)

Dr Lee Tsao Yuan asked the Minister for National Development what the specific plans are for the development of Executive Condominiums and when the first few lots of the Condominiums will be ready for occupation.

The Minister for National Development (Mr Lim Hng Kiang): Mr Speaker, Sir, for a start, my Ministry has identified six sites for the development of about 2,100 units of Executive Condominiums in the first year. These sites are at Pasir Ris, Jurong East, Simei, Tampines, Bukit Panjang and Choa Chu Kang.

Pidemco, the first developer appointed under the scheme, has opened Eastvale at Pasir Ris and Westmere at Jurong East for booking. The expected date of Temporary Occupation Permit is 25th June 2000.

A site for 602 units of Executive Condominiums at Simei has been allocated to NTUC. Singapore Technologies plan to build about 700 units of Executive Condominiums at Bukit Panjang and Choa Chu Kang. Pidemco will develop about 300 units in Tampines. All these projects are still in the design stage and the completion dates have not been finalised.

Dr Lee Tsao Yuan (Nominated Member): Does the Ministry intend to have these flats sold at more or less the same prices as for Eastvale and Westmere?

Mr Lim Hng Kiang: The price for each project will have to depend on the market conditions prevailing at the time of the launch. The first two projects showed that the price set at $400 per sq ft was fair and reasonable, and Singaporeans have responded positively.

Dr Lee Tsao Yuan: With the release of these Executive Condominiums, what is the Ministry's assessment regarding the market for private condominiums? In particular, would the Ministry assess that it actually has a dampening effect on the price of similar types of private condominiums?

Mr Lim Hng Kiang: The Executive Condominium Scheme was conceived as a way to help Singaporeans to own properties, particularly that group who now find private properties beyond their reach. So it is to help the so-called "sandwich" group. As a result of the restrictions on the Executive Condominium, the land prices and therefore the selling prices of the Executive Condominium can be priced more competitively. In a sense, this is a separate segment of the market compared to those who are buying private property, particularly those aiming for freehold private property in choice areas.

We are still studying the income profiles of the applicants for the first two projects and analyse which segment of the income they come from. Then we will have a better feel whether the Executive Condominium is drawing demand from the segment that we are aiming to help or is drawing demand from that segment which could have afforded private condominiums with their own resources.