Resale ECs hitting MOP in 2023 (and do you have to promote proper after MOP?)

The Visionaire

Handle: Canberra Drive
Variety of models: 632
Nearest MRT/LRT stations: Canberra MRT (503m)
Common worth psf: $1,088

Located a 7-minute stroll from Canberra MRT station, The Visionaire contains 2, 3 and 4-bedroom models 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 situated inside strolling distance to Canberra MRT, Canberra Plaza, Sembawang Purchasing Centre and Solar Plaza, the place there are supermarkets, F&B retailers and different facilities. 

Main faculties inside 1km of The Visionaire are Wellington Main and Sembawang Main. 

Parc Life 

Handle: Sembawang Crescent
Variety of models: 628
Nearest MRT/LRT stations: Sembawang MRT (666m)
Common worth 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 models. 

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. Purchasing malls like Solar Plaza and Sembawang Purchasing Centre are additionally inside strolling distance. 

Sol Acres

Handle: Choa Chu Kang Grove
Variety of models: 1327
Nearest MRT/LRT stations: Teck Whye LRT (267m)
Common worth psf: $1,151

There usually are not only one however two ECs MOP-ing in Choa Chu Kang this 12 months. The primary is Sol Acres, a growth with 1 to 5-bedroom models catering to households, {couples} and buyers. It’s the one EC on this listing to have 1-bedroom models. 

For every day groceries, residents can take a brief stroll to a FairPrice Xpress at Keat Hong Mirage and Sheng Siong at Teck Whye Purchasing Centre, which additionally has quite a lot of F&B retailers and facilities.

Main faculties inside 1km of Sol Acres are Choa Chu Kang Main, South View Main and Teck Whye Main. 

Though the EC just isn’t close to an MRT station, residents can take a brief LRT trip to Choa Chu Kang or Bukit Panjang MRT stations from both Teck Whye or Keat Hong LRT stations. 

Wandervale

Handle: Choa Chu Kang Ave 3
Variety of models: 534
Nearest MRT/LRT stations: Choa Chu Kang MRT (647m)
Common worth psf: $1,115

Situated nearer to Choa Chu Kang Central, Wandervale has 3 and 4-bedroom models 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 retailers. Residents can even be close to the coffeeshops and eateries at Teck Whye Purchasing Centre.  

Main faculties inside 1km of Wandervale embrace Choa Chu Kang Main, South View Main and Teck Whye Main. 

Residents may 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 dwelling in an EC, you would possibly need to promote your unit proper after MOP to achieve 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 mean gross revenue of $295,904. Many 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 $500,000, together with a unit at [email protected] which yielded the very best revenue of $1.38 million. 

With encouraging figures like these, it’s comprehensible that EC homeowners would need to promote their unit as soon as it reaches MOP. 

Apart from the probability of gaining a excessive revenue, ECs are usually considered fashionable as there’s an opportunity to purchase a rental with authorities subsidies. 

One other issue is likely to be the excessive demand however low provide of ECs out there. 

In response to knowledge from URA Realis, there are solely 433 unsold EC models out there. Therefore, homeowners of freshly-MOP ECs would possibly need to capitalise on the low provide of ECs. 

That is coupled with the truth that current EC launches have additionally carried out properly. 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 dump your EC

1. Think about the life cycle of ECs

In case you are an EC proprietor, you may additionally take a “wait and see” method. One issue to contemplate 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 rental, however as soon as they attain 10 years, they’re absolutely privatised. 

We’ve in contrast 5 ECs which TOP-ed in 2014 and shall be absolutely privatised in 2024 – Austville Residences, Arc at Tampines, Belysa, Blossom Residences and The Cover. For a fairer comparability, these tasks are throughout totally different estates in Singapore and are fairly a distance away from an MRT station.   

Primarily based on the worth developments of those 5 ECs, their common psf costs didn’t recognize a lot after reaching MOP in 2019. Nevertheless, between the sixth to eighth 12 months after TOP, their common psf costs appreciated extra considerably. Therefore, you would possibly need to preserve your EC somewhat longer earlier than promoting it for much more revenue within the later years. 

One factor to notice is that different components is likely to be at play, such because the property increase through the Covid-19 interval and the availability and demand of recent 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 availability 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 be capable of demand a better worth. If a number of ECs are MOP-ing in an space in the identical 12 months, many EC homeowners shall be desperate to dump their unit, so ready for a number of months or perhaps a 12 months is likely to be higher. 

It’s additionally necessary to take a look at the variety of HDB developments MOP-ing your space. This may kind the pool of patrons on your resale EC, and they’re most definitely to improve to non-public property in the identical space. 

ALSO READ: An EC made $1.38m in income? 10 most worthwhile govt condos previously 10 years

3. Think about your funds and housing scenario

In the event you’re promoting your EC to improve to a non-public rental, 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 neglect to make use of 99.co’s Mortgage Calculator and Affordability Calculator.) 

You’ll additionally must make preparations and issue within the funds for non permanent lodging if you wish to downgrade to a resale HDB, as there’s a 15-month wait-out interval.