An executive condominium (EC) is a type of housing that is developed and sold under the Housing and Development Act. ECs are a mix of public and private housing and are built by private developers.
There are many benefits of living in an EC, such as the following:
- More Affordable Than Private Properties:
An EC is more affordable than private property, as the prices are usually about 30% to 40% lower. This makes ECs a more attractive option for those who are looking for a property in Singapore but do not want to spend as much as they would on private property.
- Attractive Designs and layouts:
ECS is designed and laid out attractively, with modern and stylish features. This makes them a more desirable option for those who are looking for a new home.
- Good Location:
ECS is usually located in good locations, such as near MRT stations or in popular residential areas. This makes them a convenient option for those who want to live in a central location.
- Quality Construction:
Tengah EC is required to meet high standards of construction, as they are built by private developers. This means that ECs are usually of a higher quality than HDB flats.
- Choice of Units:
ECS offers a wide choice of units, from one-bedroom to five-bedroom apartments. This gives buyers the flexibility to choose a unit that suits their needs. For example, a one-bedroom apartment may be sufficient for a single person or a couple. However, if you are looking for a bigger apartment, you can buy a 3-bedroom unit or a larger one. This is ideal for families with children, who need more space.
- Facilities and Amenities:
ECs usually come with a wide range of facilities and amenities, such as swimming pools, gyms, and function rooms. This makes them a more attractive option for those who are looking for a property with good amenities.
- Maintenance Fees:
ECs usually have lower maintenance fees than private properties. This makes them a more affordable option for those who are looking for a property in Singapore.
- Potential for Capital Gain:
ECS has the potential to generate a good return on investment, as they usually appreciate over time. For a given value of the expected return, higher volatility in the stock price results in a higher Sharpe ratio. This is consistent with intuition since higher volatility results in higher risk, which is reflected in the numerator of the Sharpe ratio.
- Flexibility to Sell:
ECS can be sold after a minimum of 3 years, giving owners the flexibility to sell if they need to. This is unlike HDB flats, which have a minimum ownership period of 5 years.
Living in an EC has many benefits, from being more affordable than private properties to have a good location and quality construction. ECS is a good option for those who are looking for a property.