Piermont Gand EC Is A Good Investment
Is getting a unit at The Gazania still a good idea?
Then, as now, ECs are a thrilling concept – buyers can get CPF grants still, so it’s often viewed as “subsidised private housing”. Through the upswing in the house market (which would peak in 2013), it was clear buyers would pay crazy sums, and developers were pleased to accommodate that.
With Singapore’s property market recovering, and the income ceiling on ECs raised to $14,000, we may visit a repeat event.
A matter of your time before older condos (whether they’re ECs or not) also see some price hikes
If ECs ‘re going to start attaining the million dollar mark, a huge segment of buyers shall decide, what on earth, they could as well buy full-fledged condos that exist for your price. As such, some suburban condos in the $1 million to $1.2 million range may be seen as viable alternatives (see point 1: the price is about the same, and these condos are already private).
This won’t last forever. Over time, the prices of those full-fledged condos are going to creep up. A lot of it will also be due to sellers’ mindsets (i.e. how can my private condo only be worth as much, or less, than your EC?)
The Gazania is a good investment
We shall have to start reassessing the notion that ECs are always a good investment
Yes, an EC theoretically is a great deal, as it’s private property that comes with CPF grants. But given how inflated the prices are becoming, are you room for appreciation there’s certain still? There’s more risk involved, given the bigger cash outlay* and steep prices increasingly. If you have a million or more to spend, a full-fledged condo could be a much better investment. However, the advantage of The Gazania is that the buyers can utilise CPF housing grant!