ECs offer good profits

EC good profit

Since the introduction of cooling measures in Singapore, the demand for executive condominiums (ECs) has went down because of the more stringent restrictions. Some of the new restrictions include Resale Levy, Introduction of mortgage servicing ratio (MSR), Income ceiling and Family Nucleus scheme.

More often than not, there are still plenty of keen ECs buyers, but are rejected because of the many restrictions that kept them off this particular market.

The Good news for those who do qualify, ECs offer them a great alternative to the expensive private property market, yet allows them to upgrade from their existing HDBs, enjoy the condominium facilities and most importantly reap a profitable gain once the ECs are privatised. ECs when first purchased from developers, are at a much subsidised rate that private properties because the land cost are subsidised by the Government. However once privatised, ECs enjoy the same status as any private condos, hence their prices are able to catch up, or almost on par with the surrounding condos.

Report shows that the average price gap between new condos and ECs are around 20%. Only upon privatisation, the disparity will narrow to just a 5% difference. In other words, the difference of the pricing becomes the profit gained once the ECs gain its private status. Of course, market timing plays an important role as well in determining the amount of profit reaped.

For those who are looking out for EC options, do check out our new Sol Acres EC, Brownstone EC and Parc Life EC.

Do feel free to Register below if you would like to find out whether you are eligible to purchase an EC direct from the Developer.