Here Comes the Right Time to Buy Executive Condo (EC)
Buyers who are interested in buying Executive Condo units are now encouraged to buy. Experts believe that the coming 18 months will offer buyers with opportunities as supply and new launches will decrease afterwards.
During the sideline of My Paper Advance Seminar, SLP International’s Executive Director of Property Consultancy, Mr. Nicholas Mak, stated that he is expecting the sloping down of Executive Condo supplies in the next two years since the government sells less land for this type of projects. He further commented that the coming months shall be considered as the “Golden Period” to buy Executive Condo properties as choices will be available till the end of 2015.
Moreover, five EC projects are scheduled to launch soon. This could be a great a relief and opportunity for those who are on the lookout for ECs after the respite during past 9 months. With these 5 launches, more than 3,000 units will be available.
Compared with private condominiums, ECs offer the same amenities with private condo but are being sold for around 20% cheaper. Usually, the range is around $700 to $800 psf. On the other hand, Mr. Eugene Lim of ERA Realty, claimed that research will prove that they are sold for almost the same price as private condominiums. Mr. Lim was one of the speakers in the said seminar.
As a support, he compared Executive Condo Bishan Loft and private condo Rafflesia which are both situated in Bishan. Both of the projects were resold a decade after they have bought and he pointed out that some EC owners were able to gain up to 190% profits while Rafflesia only made 60%. This comparison only showed that EC buyers can expect to have better earnings if they decide to resell their units after the declared minimum occupation period.
The head of channel strategy and business alliance at OCBC Bank, Mr. Kenny Tan, offered the more than 150 seminar attendees an overview of the process in obtaining a loan for such property. He also advised the attendees to consult with a banker first before applying for a loan. This would help them determine how much they can expect under the Total Debt Servicing Ratio framework.
As a final speaker, the Director of Anthony Law Corporation, Mr. Anthony Lim provided the insights of the legal processes involve in buying ECs.
Financial analyst Casey Ong, 27, found the talk informative. “The research shared on the trends in the Executive Condo market will be useful in helping me make a good purchase in the future,” he said.