Many are waiting for Piermont Grand Executive condominium, the only EC launching in Singapore in 2019. In recent years, executive condominiums have rose in ranks and is highly sought after by not just first time home seekers, but also upgraders from public housing. So what exactly are executive condominiums?
Originally created for the sandwiched class in Singapore i.e. citizens who are overqualified for public housing and yet still unable to comfortably own a private condominium.
Think of EC as a hybrid between a public housing and private condominium.
It is developed by private property developers and is usually a full facilities condominium with the basics of having its own pool, gym, securities and etc. After being bound by strict rules and regulations for the initial 10 years, it will be fully privatised and can be sold like any other private properties.
Those who aspire to use property as an investment pool, the numbers seems to work better for ECs. As ECs are purchased with subsidies, the profit margin, rental yield all works better. However, do note that the benefits will likely start to show only after the 10th year mark. For investors, this may be too long a wait and some may explore other options with shorter investment tenure.
Piermont Grand EC has had everyone’s attention for the past few weeks. With a high land bid price, it is highly likely that this EC, will be one of the most expensive, in the area, or in history (for now). This could make it the first million dollar EC in the area.
If typical ECs are going to start reaching the million dollars mark, more buyers are going to think twice and reconsider their options. At this hefty price tag, they may be better off buying a private full-fledged condos that are available for that price. As such, some suburban condos in the $1 million to $1.2 million range may be seen as viable alternatives. One good comparison will be Treasure At Tampines
Gone were the days when EC land is cheap and the developer can afford to sell you at cheap prices with big units. It was worth it to buy and wait.
Nevertheless, if you’re buying an EC for a home, don’t worry about this at all. But if you’re thinking of your EC as an investment, it may be time to question the underlying assumptions. Reconsider your options against the long timeline involved in a EC purchase.
Property Investment may appear all scary and not easily attainable. Detailed calculations will ease any doubts. Do you have a desire to invest in the housing market, but not know how to? Can Piermont Grand be a viable option?. Do find out more!
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