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.

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  • Yixiong Chang
    Yixiong Chang
    Level 5. Genius
    Answered on 07 Feb 2019

    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).

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  • Loh Tat Tian
    Loh Tat Tian, Ex-Financial Advisor, Founder at Singapore Insurance Value Finding
    Level 6. Master
    Answered on 07 Feb 2019

    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.

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