New ECs versus private condos: price gap widening

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.