Secondary market ECs are pricier

Secondary market Executive Condos (EC) prices are rising and are getting close to about 17% from that of the private mass market condominium prices. This gap is very contrasting compared to about 32% differential in the year 2007.

ECs are a hybrid class of public and private housing with better fittings and furnishings than HDB flats and comes with communal facilities like a private condominium project.

Some ECs are getting more popular now as the typical home buyers are attracted by those ECs that provides better features and lifestyle concept.

Purchasing of new EC units are subject to HDB regulation and are applicable for those with household income not exceeding $12,000.

As ECs approach its fifth year, the owners can resell the unit to Singaporean and SPR. While those ECs that are more than 10 years old are private properties and foreigners can purchase these older units.

Recently, some EC project have higher-end offerings like concierge services, infinity pools, penthouses and private condo-alike suites that are equipped with jacuzzi pools. When these better quality ECs turn 10 year old, some analysts predict the price gap could be as small as 5% then.

The current price gap for some housing estates are listed below :
– District 19 has an average gap of about 22%.
– District 18 and District 20 have average price gap of about 10%

It appears that buyers are willing to pay higher for resale ECs in mature estates and where there are lesser supply of resale units.

2 Dec 2012