New ECs versus private condos: price gap widening
Analysts debate if it's good value, or opportunity cost due to restrictions
THE price gap between new executive condominiums (ECs) and private condos is widening, as rising condo prices have outpaced the fairly steady prices of its public-private counterpart since 2011.
According to a study by STProperty, buyers who bought an EC this year would have saved 31.7 per cent on average over purchasing a private home from developers. This is higher than the 23.1 per cent savings EC buyers would have enjoyed in 2011. This makes ECs a good value proposition to the aspiring sandwiched class who do not qualify for public housing but can ill-afford private condos, STProperty says.
But consultants say the cheaper prices of ECs are simply a function of their selling and renting restrictions, and the fact that they are essentially still government-subsidised housing.
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