Why Investing in Tampines Executive Condominiums Could Be a Good Decision
Why investing in EC is a good idea? EC is a class of housing between HDB flats and private condos. Its sales price is usually lower than the equivalent private condo. The price per square foot for ECs is 760 dollars compared to 650-750 dollars during previous launches. According to SLP International Executive Director Nicholas Mak, this development will do well with demand from first-time buyers and upgraders.
EC is a class of housing between HDB flats and private condos
ECs are a hybrid of public and private housing, boasting private estate facilities, yet subject to HDB regulations. At the time of purchase, ECs were a kind of hybrid property, with a public ownership period of five years and a 99-year leasehold tenure. With the recent introduction of the HDB Design, Build and Sell Scheme (DBSS), private developers can now build public housing. While there are some differences between private condominiums and ECs, both housing types are aimed at young families from the middle class.
The main difference between EC and private condos lies in their monthly income requirements. ECs are cheaper than private condominiums, but buyers are required to make monthly payments higher than the maximum income threshold of a private condo. In addition, an EC has a five-year occupancy period, meaning that owners cannot rent out the entire property during the first five years.
Although ECs are cheaper than private condos, they do not come without drawbacks. The price of an EC is usually 20% lower than the price of a private condo. Furthermore, ECs are subject to the same conditions as HDB flats. In addition, buyers can apply for CPF housing grants for their new home. ECs are eligible for both grants. For first-time applicants, a Family Grant is available. For second-time grant applicants, a Half-Housing Grant can be obtained. The Second Time Co-Applicant Grant (SC), a Half-Housing Grant, and a Single-Owners’ Grant are available.
While private condominiums are a better investment option than HDB flats, ECs are typically cheaper. They offer many of the same facilities as private apartments and will continue to appreciate in value in the resale market. In addition, ECs have lower land costs and construction costs compared to private condos. Because of this, ECs can often be a better investment than HDB flats.
One recent EC launch in Tampines is the Arc at Tampines. It offers 574 units, ranging from two-bedders to penthouses. Analysts expect the development to sell well, with demand from first-time buyers and upgraders. One of the most notable features of this development is the grand arches that overlook a basketball court. The grand arches in Block 497 are an Instagram-worthy subject for photographers.
It is built on GLS government land sales
The HDB has released a residential plot at Tampines Avenue 10 with a maximum gross floor area (GFA) of 69,829 sq m. With the land parcel’s prime location, it’s likely to yield 821 dwelling units. The nearby Pan Island Expressway and Kallang Paya Lebar Expressway provide direct access to major business districts in the Tampines estate.
Two prime locations for executive condominiums in Singapore are available in two government land sales programmes. In Tampines Street 62, developers are planning to develop an executive condominium. Both are located on GLS government land sales sites and will have 99-year leaseholds. A successful bidder must ensure that the project will include EV charging points. EV charging points will be built for the Executive Condominiums.
The GLS government land sales programme has released a total of 13 sites. Four sites are on the Confirmed List, while nine sites are on the Reserve List. The Confirmed List is sold by tenders while the Reserve List is put up for tender when the developer specifies a minimum price. Although this is an upper estimate, the number of buyers for this prime site is a sign of strong appetite for land in Singapore.
The EC site in Tampines is a remnant of the second half of 2020 GLS programme. The Covid-19 project has shifted some of the EC sites to the Reserve List for the second half of 2020. It’s worth tracking the two GLS programmes closely. Ideally, you’ll be able to shortlist a handful of properties that match your budget and criteria.
Considering that Tampines Executive Condominiums is a development of two hot GLS sites, it’s important to follow these sites. The URA will release a media statement detailing the sites and their developers. The URA will also release the price quoted in the tender. Once the URA has announced the price, you’ll be able to choose the right property for your needs.
It has a lower sales price than an equivalent private condo
Why does the price of Tampines Executive Condominiums be lower than the equivalent private condo? Because ECs are subsidized by the government and a high proportion of sales are from foreigners. In addition, ECs usually have lower profit margins than private condos, as the land price is subsidised by the government. In addition, ECs are often more luxurious due to government subsidies, which increases the price of the property.
There are many reasons why ECs are better for foreigners. The tenure of ECs is 99-year leasehold, while that of private condominiums is generally freehold. The length of the lease period affects the value and ability to pass the property down for many generations. Additionally, ECs are typically located in locations that are not convenient or far from public transport. Private condos are typically in prime areas, which tend to be more expensive.
For example, the sale price of Tampines Executive Condominiums is about 25% lower than the equivalent private condo. The price difference may be due to the fact that the development is a year older. However, in recent years, the ECs have undergone upgrades to attract more foreign buyers. For this reason, they are a good investment for those who want to downgrade from HDB. However, there are a few negatives. In the first five years of MOP, ECs are not permitted to rent out the entire unit. This may be an issue if you intend to rent out your condo.
In the long run, the low initial selling price of an EC will boost its capital appreciation, so ECs are better than private condos for foreign investors. For HDB buyers who have yet to upgrade, the EC is a cheaper option than private condos. Moreover, you’ll enjoy lower resale prices after privatization. And if you decide to sell your EC, you can do it through the open market.
The development has a conducive environment with good conductivity. In addition, it is located in a mature estate with a good conductivity. It has the potential for both capital appreciation and high rental yields. The average price of Tampines Executive Condominiums is about $1350 psf, which is considerably less expensive than the equivalent private condo. Its low entry price makes it a good exit strategy as well. If you’re planning to sell your condo, you can make a good profit.
It is a good investment for the sandwich class
In Singapore, investing in an EC could be a good idea for the sandwich class. This type of property is a hybrid between private and public housing. It caters to people from the sandwich class, which are on the higher end of the property spectrum, but have a lower income than those in private housing. However, there are some important considerations to consider before buying.
While private condominiums are cheaper than executive condominiums, the sandwich class cannot afford them without government subsidies. Because of this, the government has introduced eligibility schemes to make them affordable for those from the sandwich class. The benefits of investing in executive condominiums include government subsidies, high-quality facilities, and resale appeal. The prime resale value of an EC is around the five-year mark. At that point, it becomes a bid for capital appreciation.
In addition to the DBSS, Tampines Executive Condos are also in an area with high demand for residential property. The area is well-connected with major amenities such as Tampines Regional Centre and Changi Terminal 5. If you’re considering this type of property, consider investing in the Tampines Avenue 10 EC, which will benefit from the coming of the new development. The ECs are good for the sandwich class and those looking to move up from HDB. However, investment in Tampines Executive Condominiums isn’t for the faint of heart.
As a regional centre, Tampines is growing in importance. It will soon be sandwiched between Paya lebar Airbase and Chanqi. These developments will help reduce the reliance of Singapore’s CBD. These plans are expected to increase employment in the area, which will drive the price of property there. This is especially true for the sandwich class.
