Asked by Anonymous
Asked on 03 Feb 2019
At the end of the day it is still a 99 year property and has a limited tenure anyway. I suppose facilities like gym/swimming pool will be priced into the selling price but is there any other reason why people will rush in for an EC just to flip it, as compared to maybe saving up for a freehold condo? I've been thinking about it for awhile and one of the reasons I suppose is because ECs are sold at a heavily discounted price, which gives them a natural potential to be flipped for a profit.
Yes, EC are priced much below average market value of similar private property, before any grants if any. And once it privatised, it will be sort of becoming the 'newest' condo in the area, thus it will also have price premium over surrounding condos if any.
Once it is privatised, there isnt any more restrictions(HDB rules) attached to buying/selling, thus it opens up to a larger potential buyer pool (also richer buyers are available).
Yes as what you mentioned. ECs are "privatised easily" after 10 years, and this gives developers a chance to redevelop the area and sell the shoebox apartments (after development) for a profit.
They are also under Executive Condo Housing Scheme Act. https://sso.agc.gov.sg/Act/ECHSA1996
Do take note you still need majority to vote for privatisation, then for developer takeover if you wish to participate in ECs.