The idea of purchasing an executive condominium (EC) as an investment appears to be gaining traction among homebuyers, even as the broader property market continues to trudge along at a snail’s pace.
The Government’s move last August to raise the income ceiling for those eligible to buy these public- private hybrid vehicle houses has made them accessible to a wider pool of people.
Introduced in 1995, ECs were targeted at helping the growing “sandwich class” of graduates and young professionals meet their housing aspirations. The strata-titled apartments come with facilities much like those in private condominiums, and are built by private developers.
But there are curbs on qualification for new units much like those for Housing Board (HDB) flats.
Marketplace watchers have noted that the rising vacancy rates for ECs in recent years could be a tell tale sign that more homebuyers are beginning to treat such flats as investment houses.
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