Like HDBs, govt condominiums (ECs) are subjected to a 5-year Minimal Occupation Interval (MOP) as they’re a hybrid of private and non-private housing. As soon as an EC MOPs, its house owners are allowed to promote their unit on the resale market (to Singaporeans/PRs) or put the entire unit up for lease.
Resale ECs is perhaps enticing to some consumers as they’re usually extra reasonably priced than new launches. As soon as it reaches its 10-year mark, it’s absolutely privatised, and its funding potential is more likely to improve. A just lately MOP-ed EC can be enticing as there’ll nonetheless be 94 years of the remaining lease and it’ll almost certainly be in good situation.
When you plan to purchase a resale EC, listed here are six ECs that may MOP in 2023.
Resale ECs which MOP in 2023
Treasure Crest
Deal with: Anchorvale Crescent
Variety of items: 504
Nearest MRT/LRT stations: Cheng Lim LRT (269m), Sengkang MRT (849m)
Common value psf: S$1,107
Situated within the Anchorvale space of Sengkang, Treasure Crest consists of three and 4-bedroom items, that are nice for bigger households with two to 4 youngsters.
The EC is inside strolling distance of a Sheng Siong grocery store, a espresso store and Sengkang Basic Hospital. The latter has a meals courtroom and different consuming institutions. Compass One shopping center and Kopitiam Sq. (which has a hawker centre and moist market) are additionally only one LRT cease away.
For consumers with younger youngsters, the excellent news is that 5 main faculties are inside 1km of Treasure Crest. These are Nan Chiau Main, Springdale Main, Anchor Inexperienced Main, Punggol Inexperienced Main and Compassvale Main.
Sengkang Riverside Park can be a couple of minutes away, the place residents can take pleasure in a refreshing stroll and the services at Sengkang Sports activities Complicated. Plus, there’s a park connector which hyperlinks to Punggol Waterway Park and Coney Island.
The Criterion
Deal with: Yishun Avenue 51
Variety of items: 505
Nearest MRT/LRT stations: Khatib MRT (1.4km)
Common value psf: S$1,073
The Criterion is certainly one of three ECs which are MOP-ing within the Yishun and Sembawang space this yr. It has a mixture of 2 to 5-bedroom items to swimsuit {couples}, younger households and even multi-generational households.
Main faculties inside 1km of The Criterion are Hua Min Main, Naval Base Main and Northland Main. Half of its blocks are additionally inside 1km of North View Main.
To your grocery wants, there’s a Sheng Siong grocery store inside a 5-minute stroll away and a FairPrice Best at Wisteria Mall. The mall has F&B shops, hair and wonder salons, enrichment centres and different companies. There are additionally a number of espresso retailers within the HDB developments close by.
One draw back of The Criterion is that it’s not very near an MRT station, however there are bus companies that’ll deliver you to Khatib MRT in lower than quarter-hour.
The Visionaire
Deal with: Canberra Drive
Variety of items: 632
Nearest MRT/LRT stations: Canberra MRT (503m)
Common value psf: S$1,088
Located a 7-minute stroll from Canberra MRT station, The Visionaire includes 2, 3 and 4-bedroom items catering to various household sizes.
One plus level is that it’s simply reverse the newly opened Bukit Canberra, an built-in sports activities and group hub with an 800-seater hawker centre, a gymnasium, a swimming pool and a polyclinic.
The Visionaire can be conveniently positioned inside strolling distance to Canberra MRT, Canberra Plaza, Sembawang Buying Centre and Solar Plaza, the place there are supermarkets, F&B shops and different facilities.
Main faculties inside 1km of The Visionaire are Wellington Main and Sembawang Main.
Parc Life
Deal with: Sembawang Crescent
Variety of items: 628
Nearest MRT/LRT stations: Sembawang MRT (666m)
Common value psf: S$1,070
Simply down the street from The Visionaire is Parc Life, one other EC MOP-ing within the space with 2, 3, 4 and 5-bedroom items.
Situated a 10-minute stroll from Sembawang MRT, it’s close to faculties like Canberra Main, Sembawang Main and Wellington Main (some blocks gained’t be inside 1km of Wellington Main).
Parc Life can be a 3-minute stroll to the closest grocery store, Prime and Kimly Coffeeshop on the neighbouring HDB Solar Breeze growth. Buying malls like Solar Plaza and Sembawang Buying Centre are additionally inside strolling distance.
Sol Acres
Deal with: Choa Chu Kang Grove
Variety of items: 1327
Nearest MRT/LRT stations: Teck Whye LRT (267m)
Common value psf: S$1,151
There aren’t only one however two ECs MOP-ing in Choa Chu Kang this yr. The primary is Sol Acres, a growth with 1 to 5-bedroom items catering to households, {couples} and buyers. It’s the one EC on this record to have 1-bedroom items.
For every day groceries, residents can take a brief stroll to a FairPrice Xpress at Keat Hong Mirage and Sheng Siong at Teck Whye Buying Centre, which additionally has a wide range of F&B shops and facilities.
Main faculties inside 1km of Sol Acres are Choa Chu Kang Main, South View Main and Teck Whye Main.
Though the EC is just not close to an MRT station, residents can take a brief LRT journey to Choa Chu Kang or Bukit Panjang MRT stations from both Teck Whye or Keat Hong LRT stations.
Wandervale
Deal with: Choa Chu Kang Ave 3
Variety of items: 534
Nearest MRT/LRT stations: Choa Chu Kang MRT (647m)
Common value psf: S$1,115
Situated nearer to Choa Chu Kang Central, Wandervale has 3 and 4-bedroom items that are appropriate for a household of 4 to 6.
What’s nice is that it’s a 9-minute stroll to Choa Chu Kang MRT station on the North-South line. It’s additionally inside strolling distance to Lot One shopping center, which has a FairPrice grocery store and loads of F&B shops. Residents may even be close to the coffeeshops and eateries at Teck Whye Buying Centre.
Main faculties inside 1km of Wandervale embrace Choa Chu Kang Main, South View Main and Teck Whye Main.
Residents can even stroll to Choa Chu Kang Park and the brand new SAFRA Choa Chu Kang, which can have a sheltered swimming pool, futsal courtroom, a working observe and extra.
Must you promote your EC proper after MOP?
For these residing in an EC, you may wish to promote your unit proper after MOP to realize a tidy revenue.
In a report by actual property company, Orange Tee & Tie in October 2022, 99.9% of ECs bought within the resale market between 2007 and end-Aug 2022 yielded a median gross revenue of S$295,904. A lot of the 4,266 transactions of ECs sampled have been bought lower than 10 years after they have been first purchased.
The identical report additionally revealed that 7% of resale ECs earned a revenue of S$500,000, together with a unit at CityLife@Tampines which yielded the best revenue of S$1.38 million.
With encouraging figures like these, it’s comprehensible that EC house owners would wish to promote their unit as soon as it reaches MOP.
Moreover the probability of gaining a excessive revenue, ECs are usually considered widespread as there’s an opportunity to purchase a condominium with authorities subsidies.
One other issue is perhaps the excessive demand however low provide of ECs available in the market.
In response to information from URA Realis, there are solely 433 unsold EC items available in the market. Therefore, house owners of freshly-MOP ECs may wish to capitalise on the low provide of ECs.
That is coupled with the truth that current EC launches have additionally carried out nicely. Copen Grand, which launched in October 2022, is already absolutely bought whereas Tenet EC (launched in November 2022) is already greater than 93% bought.
Extra importantly, don’t rush to unload your EC
1. Think about the life cycle of ECs
In case you are an EC proprietor, you may also take a “wait and see” strategy. One issue to think about is the life cycle of ECs. ECs are a particular case in Singapore’s property market as they’re subsidised as a brand new launch condominium, however as soon as they attain 10 years, they’re absolutely privatised.
We’ve in contrast 5 ECs which TOP-ed in 2014 and will likely be absolutely privatised in 2024 – Austville Residences, Arc at Tampines, Belysa, Blossom Residences and The Cover. For a fairer comparability, these initiatives are throughout completely different estates in Singapore and are fairly a distance away from an MRT station.
Based mostly on the value tendencies of those 5 ECs, their common psf costs didn’t respect a lot after reaching MOP in 2019. Nevertheless, between the sixth to eighth yr after TOP, their common psf costs appreciated extra considerably. Therefore, you may wish to hold your EC a bit of longer earlier than promoting it for much more revenue within the later years.
One factor to notice is that different elements is perhaps at play, such because the property increase in the course of the Covid-19 interval and the provision and demand of latest ECs, which brings us to our subsequent level.
2. Provide and demand of ECs and newly-MOP HDBs within the space
One other issue affecting how a lot revenue you make out of your EC is the provision and demand of ECs within the space and the variety of newly-MOP HDBs within the space.
If there’s a low provide of ECs or non-public condos in your space, likelihood is you’ll have the ability to demand the next value. If a number of ECs are MOP-ing in an space in the identical yr, many EC house owners will likely be desperate to unload their unit, so ready for a couple of months or perhaps a yr is perhaps higher.
It’s additionally vital to have a look at the variety of HDB developments MOP-ing your space. This might kind the pool of consumers in your resale EC, and they’re almost certainly to improve to personal property in the identical space.
3. Think about your funds and housing state of affairs
When you’re promoting your EC to improve to a non-public condominium, you’ll want to make sure that it’s inside your monetary means. With the rising rates of interest from banks, you’ll want to have the ability to tide by means of your month-to-month mortgage funds. (Don’t overlook to make use of 99.co’s Mortgage Calculator and Affordability Calculator.)
You’ll additionally must make preparations and issue within the funds for momentary lodging if you wish to downgrade to a resale HDB, as there’s a 15-month wait-out interval.
Whereas the paper positive factors from ECs are enticing, finally, you’ll have to consider the following step in your house possession journey and think about the wants of your loved ones.
When you discovered this text useful, 99.co recommends the Full record of HDB BTO initiatives hitting MOP in 2023 and ECs nearing 5-year MOP or 10-year privatisation: eligibility, value and do you have to purchase?
