Asked by Anonymous

Why will EC value go up after privatization?

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.

0
0
Share this
Answer this question
Add
Add
Select
Clear
Add
Write your answer

Answers (2)

Sort by:
Most Upvote
  • Most Recent
  • Most Upvote
    • Yixiong Chang
      Yixiong Chang
      192 Answers, 250 Upvotes
      Answered 3w ago

      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).

      Comments (0)
      1
      0
      Share this
    • Loh Tat Tian
      Loh Tat Tian, Ex-Financial Advisor, Founder at Singapore Insurance Value Finding

      Top Contributor (Jan)

      232 Answers, 331 Upvotes
      Answered 3w ago

      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.

      Comments (0)
      1
      0
      Share this

Download Seedly’s free

Expense Tracking App
Download on the App StoreGet it on Google Play
  • Sync all your banks in one place
    Sync all your banks in one place
  • Quickly add transactions and view reports
    Quickly add transactions and view reports
  • Community Q&A and blog integration
    Community Q&A and blog integration