EC units are a good buy

Last month in Bishan, an executive condominium (EC) unit was bought by a local buyer at a sturdy price of $940,000. Compared to several private apartments, these 99-year leasehold units with land area of 1,346 square feet, sold at $699 per square feet (psf), came cheap.

EC units are the kind of apartments that meets in between HDB flats and public housing. They have the amenities of a condo, but have sale limitations the same as for those of public housing. These kinds of transactions are nearly impossible that is why sellers of the Bishan Loft are very fortunate.

According to Mohamed Ismail, chief executive of PropNex, said, 'Certainly, ECs are not crisis-proof,' and added that the downturn can easily affect the prices of EC units.

Miss Jacq Chong, an ERA agent, stated that buyers are interested in condos in the central location and near the MRT stations.

This may come as bad news to sellers, but good news to buyers, especially if they have been searching and preparing to buy a condo unit. Interested buyers who have small budget on hand may be pleased to hear that not all ECs are priced like that of Bishan Loft. ECs in Choa Chu Kang and Woodlands are more affordable, considering they are in the outlaying regions.

For people who are planning to purchase an EC unit, it is a win-win situation; for they are more affordable than HDB flats, but has the facilities comparable to the said flats. Having a unit leased is also a good idea, another reason why it should be considered, as buyers who want it to be put on lease will yield about 4 percent.