## Which Executive Condominium earn up to S$1,127,000 ? In our previous article about when you should sell your Executive Condominium (EC). We discussed Bishan Loft as a major anomaly. Its average price psf has increased by about 167% since it first obtained its Temporary Occupation Permit (TOP) in 2003: from an average of$440.80 psf in 2003, to an average of $1176.30 psf in 2020. Bishan Loft Source: Propertyguru Amongst all its Executive Condominium counterparts, it has experienced the most explosive growth thus far. And this growth may not stop anytime soon. Well, that’s nice and all, but we sure this is the question that everyone is wondering. Why has it done so well? In this article, we’ll be exploring several factors that may have contributed to Bishan Loft’s insane profit margin over the past 17 years, in hopes that we know what exactly to look out for when buying a property that we hope will experience large capital appreciation in the future, just as Bishan Loft is experiencing. ## 1.Demand and Supply Demand and supply is an economic concept that we’re all familiar with. And it’s one that applies to property as well. When we talk about D&S with regards to Bishan Loft, we’d like to discuss the number of condominiums in close proximity to Bishan MRT station. Bishan MRT Surrounding Private Property Source: URA Looking at the Urban Redevelopment Authority (URA) private property map, we see that there are only six condominiums near Bishan MRT, including Bishan Loft. Let’s compare this to a similar region that’s also within the Rest of Central Region (RCR) circumference that’s also considered a mature estate like Bishan – Paya Lebar. Paya Lebar MRT Surrounding Private Property Source: URA There are more than twenty condominiums in the vicinity of Paya Lebar MRT. We can see from this comparison that there’s a huge difference in supply between Bishan and Paya Lebar MRT stations when it comes to condominiums. And where supply is limited and demand is high, we see prices soar. A lack of condominiums in the area around Bishan MRT has directly contributed to the high prices of Bishan Loft. Scroll down to download the FREE Complete Checklist for you on the purchase of Executive Condominium! ## 2. Floor Plan As a follow-up to the previous point, we’ll be directly comparing Bishan Loft to the other five condominiums in its vicinity. Bishan 8 floor plan Source:SRX One thing stands out when we compare Bishan Loft to its condominium counterparts, Rafflesia and Bishan 8, which were also built around the same time period: the two other condominiums have extremely odd-shaped units. Compared to them, Bishan Loft’s regular rectangular-shaped floor plans would be much more appealing to buyers. Similarly, in 2012, Clover By The Park was launched with floor plans that were slightly atypical. While there isn’t much to say about Sky Habitat and Sky Vue, launched in 2015 and 2017 respectively, we can see that based on floor plan alone, we can confidently say that the measly five condominium competitors in the vicinity have already been narrowed down to simply two. ## 3. Location It is arguable that Bishan Loft is located in one of the most enviable areas in a mature estate. As mentioned above, not only is it located less than 10 minutes away from Bishan MRT by foot, and thus also within walking distance of the shopping mall Junction 8, it’s also located extremely close to Raffles Institution (RI), Catholic High School, and also Eunoia Junior College. Bishan surrounding amenities Source: openstreetmap And again, as mentioned, it’s located in the RCR, and also a mature estate. Other than that, Bishan Loft is surrounded by HDB flats, and consequently has many childcare centres surrounding it. For the same reason, there’s a plethora of neighborhood coffee shops surrounding the property. Scroll down to download the FREE Complete Checklist for you on the purchase of Executive Condominium! ## 4.Initial price The three above factors talk mostly about why the current average psf of Bishan Loft is so high as compared to its other counterparts or alternatives; however, what contributes to profit margin isn’t just its final selling price, but also its initial price. There are two factors that have contributed the most to its low starting average psf. First and foremost, Bishan Loft is an executive condominium, which means that most of its prices are sold at a discount as compared to its condominium counterparts. Executive Condominium Eligibility Source: HDB This is because Executive Condominiums can only be sold to Singaporeans and Permanent Residents (PRs), and the Minimum Occupation Period (MOP) of five years has to be fulfilled, much like a Housing Development Board (HDB) flat. We see this clearly when we compare the starting average price psf of Bishan Loft, an Executive Condominium, and Rafflesia, a condominium, both with similar characteristics. Bishan Loft saw a starting average psf of$440.80, while Rafflesia saw a starting average psf of $708.00 Secondly, the launch of Bishan Loft in 2001 occurred right when the property market was experiencing a slight downturn. Private Residential Prices Source: Edgeprop From the graph above, we can see that in 2001, property prices were slowly declining, and market outlook didn’t seem too optimistic. We can assume that Bishan Loft units were sold at a slightly lower average psf so as to attract more buyers during that period. With these two factors in mind, we can see why the average starting psf of Bishan Loft units are considered low compared to its condominium counterparts, and other Executive Condominiums in Singapore. ## Conclusion To sum up what we’ve mentioned in this article, we can conclude that demand and supply in a highly-sought estate or prime location has definitely been a key contributor to Bishan Loft’s continuously increasing average psf over the past 18 years. Moreover, when buying a property, taking into account the current stage in the property cycle is important as well: after all, buying at a low initial price contributes to an even greater profit margin in the future. At Home Quarters, we take all these factors into account before we advise you on how to sell your property, or what property we believe you should buy. We’d be happy to provide you with various analyses, advice, and any sort of assistance you may require, whether you’re a buyer or a seller. Leave your contact details and any queries down below, and we’ll contact you ASAP. ## Free Download Get the FREE Complete Checklist for you on the purchase of Executive Condominium! CLICK HERE TO DOWNLOAD!! ## Contact Us We’d also love to hear your opinions on this article. Do you think there are any other reasons why Bishan Loft did so well? Or are there any other properties you know did very well too, and would like us to write about? You can let us know through commenting on our YouTube that we did on this article, sending us a quick email, or hitting us up on our Facebook and Instagram pages to shoot us a quick direct message. If you have questions or if you are thinking about properly showcasing your house for sale, whatsapp message or call KC from Home Quarters and begin finding your new home today: +65 8809 2889! That’s all for this article! Stay safe, and remember, call Home Quarters and start packing! ## Five weird lifestyle-changing factors for HDB Flat You’ve probably stumbled across this article if you’re kiasu like me – you don’t want to buy your dream HDB flat, be it BTO or resale, only to realize that your dream has somehow warped into a chilling nightmare. Sounds like an exaggeration? For some of you, it may very well not be. To avoid such a situation occurring, we’d like to present to you five weird lifestyle-changing factors that you should look out for before buying a HDB flat. ## 1. HDB Flat Pets The Housing and Development Board (HDB) is actually extremely strict about the specific types of pets that can be raised in a flat. If you’re planning to get a pet in the future, or you already own one and plan to bring it with you to your new HDB flat, this section is most applicable to you. HDB Approved Dog Breeds Source: HDB Let’s talk dogs. HDB allows for 62 breeds of dogs, and the full list can be found here. However, that’s not all, you can only keep one dog in your HDB flat. And if it is a mixed breed, it can only come up to a maximum height of 55cm. Cast are not allowed in HDB flats Source: HDB Regarding cats, though, HDB actually implemented a rule whereby cats are not allowed to be kept in HDB flats. We’ve actually covered all the finer details in our article, where we discuss why this rule was implemented, and other alternatives you can explore if you’re adamant on owning a cat. Other pets like rabbits, guinea pigs, or fish, are fine though. Though, we should mention that if you’re a fan of exotic pets, you do need to take a look at exactly what can and cannot be kept in HDB flats, which you can find on the HDB website. Scroll down to download the FREE 15 MOST IMPORTANT FACTORS CHECKLIST before buying HDB flat! ## 2. HDB Flat Gentrification Gentrification is a term that’s been on the rise for a while. In a traditional sense, the word is used to describe how a neighbourhood changes to become one that caters more to wealthier households than before. Tiong Bahru Bakery Source:Casual Diner We’ve been seeing something similar in various neighbourhoods, most notably with the example of Tiong Bahru. Tiong Bahru is a neighbourhood in a now-prime region that’s witnessed the emergence of a large number of artisanal cafes. While residents haven’t really been complaining about the changes to the area as they cite Tiong Bahru Market as a highly accessible option for cheap hawker food, this may not be the case for other estates that may undergo gentrification in the near future. Tiong Bahru Club Source:SG Magazine If you’re someone that prefers a wide variety of old school kopi and a delicious hokkien mee full of wok hei flavor over a pleasant cappuccino and a fancy eggs benedict, this may be a factor you want to take into account before you move into your new neighbourhood. If this seems like a major concern to you, and you’re uncertain as to whether or not a neighbourhood you’re looking to buy a flat in might undergo gentrification, leave your contact details! Home Quarters would be more than willing to take a look at your options and advise you on how to proceed. ## 3. HDB Flat with quirky shapes This section applies more to those buying resale HDB flats; BTO flats today are thankfully shaped in a standardized way. There are some older HDB flats out there who have weirdly shaped floor plans, such as fan-shaped ones, or units that, for some reason, lack corners. In any case, some of these shapes may not be obvious to you at first glance. This may not always necessarily be a bad thing, though; some owners just take it in stride. Curve shape corver unit Source:Renovation.sg However, there are some problems that you may see cropping up. The problem that we personally would take the most seriously is the inability to maximize space. Most flats in Singapore are already not as large as most would like; having a shape that, for example, causes your dining table to be unable to fit into a certain corner, would mean that that table would have to be put somewhere else, that could have been empty. This may give your house an illusion of being more cramped than it actually is. Well, this problem, like many others, can be easily fixed with money. Having a budget to buy or craft customized furniture that best suits the shape of the house, or to fully renovate the house, could possibly guarantee not only a complete utilization of space, but also capitalize on the special shape of the house. This could also mean that your house looks especially unique and intriguing to guests. But of course, these benefits come at the expense of an increased cost of acquisition of the flat. Scroll down to download the FREE 15 MOST IMPORTANT FACTORS CHECKLIST before buying HDB flat! ## 4. HDB Flat Hidden Fees While HDB flat owners pay less in maintenance fees (officially called the Service and Conservancy Charges (S&CC)) than their condominium-owning counterparts, when you’re looking to buy a resale HDB flat, it would be best to look out for any sort of hidden fees that you might have to pay once you move in. These can come in the form of pest problems (paying for a pest exterminator to come in), faulty water heaters (having to replace them in all the toilets), wiring problems (more applicable to those who aren’t planning on renovating their new home), or having to install your own air-conditioning units. While these may not seem like they cost a lot, you might find better alternative flats that don’t require such troublesome services, despite being just a tiny bit more expensive. ## 5.Location of flat within the block A lot of people talk about the floor level of their units as a key factor they take into consideration. Something else you can take into consideration. However, is where exactly your unit is located on whatever floor. HDB Corridor Unit Source:shaheed salim Take for example, a comparison between a corridor unit and a corner unit. A corner unit usually provides more privacy due to less foot traffic, and would also prevent people from accidentally destroying your houseplants or kicking your shoes by accident. On the other hand, some actually prefer corridor units as they feel less stuffy, and its orientation allows natural light into their living rooms. HDB Recess Area Source: Fatema Design Studio Another interesting tidbit here: you know that little area outside your HDB flat along the corridor? You can actually buy that space and have it renovated to your liking. It comes with quite a few conditions though – check out our article we did covering this topic for the specifics! If this speaks to you, you might want to consider getting a resale flat that has a recess area available for purchase. Another example would be your unit’s proximity to the nearest garbage chute. If you’re like me, and you absolutely hate any form of creepy-crawlies, we would never get a unit that’s anywhere close to the garbage chute. ## Conclusion The five factors we’ve mentioned above are unlikely to apply to everyone – a lot of these factors depend upon your own personal preferences and where your priorities lie when you’re choosing a flat. However, we sure we all want to have every possible factor taken into consideration before buying a house, arguably one of the most important decisions in our lives. Here at Home Quarters, we won’t just tell you about numbers and facts, but we’ll also pay extremely close attention to every little single preference that you have, talk to you about any future plans, and take a multitude of factors and opinions into consideration before advising you on buying your dream HDB flat. ## Free Checklist We also listed out another 15 IMPORTANT FACTORS BEFORE-YOU-BUY-HDB CHECKLIST for you !! CLICK HERE TO GET THE FREE CHECKLIST!! ## Contact Us If you have any questions or want to share any opinions with us regarding this article, simply leave your contact details or send us a quick email ! Alternatively, you can contact us via whatsapp message or call KC at +65 8809 2889! Or direct messages on our Facebook and Instagram pages. At Home Quarters, we’re all about quality, efficiency, and most importantly, taking into account what exactly our client wants. If you want to hear about how we do this, take a look at our series Closing Thoughts, where we sit down with our clients after we’ve successfully sold or bought a property on their behalf! That’s all for this article! Stay safe, and remember, call Home Quarters and start packing! ## How to choose your perfect fit cheap condominiums? Condominiums are usually seen as expensive and luxurious private properties that Singaporeans continuously aspire towards. The thing is, though, not all condominiums have to be expensive – in our YouTube video. We covered three affordable condominiums that all cost less than or around half a million dollars. However, the key question is: are they really worth buying? The scope is a little wide with this question, so we’ve narrowed it down to the following: Based on the following age groups, 20-35 years old, 35-55 years old, and 55 years old and above. Are cheap condominiums truly worth its value? Before we begin the article, you might ask, why those three age groups specifically? That’s because we understand that individuals of different ages have different priorities. ### A. Age 20-35 years old More specifically, younger couples and individuals in the 20-35 years old age group are most likely to be looking to buy their first property, and are looking at condominiums either because they have failed to obtain a BTO flat, or because they are not willing to buy a resale HDB flat. Most people in this age group are likely to be unable to afford more expensive condominiums. Though, due to the fact that their incomes are likely to be entry-level pay. ### B. Age 35-55 years old Meanwhile, middle-aged folks in the 35-55 years old age group might be looking to upgrade their current property to a newer, bigger one, perhaps with more amenities. ### C. Age 55 years old and above Lastly, those in the silver generation that are 55 years old and above could be looking to downgrade into a cozy retirement property after their children have moved out of their previous house. With that being said, let’s dive into the three factors that we believe best answer the question. Should you buy a cheap condominium? ## 1. Size The first factor we’ll be addressing, of course, is size. ### A. Age 20-35 years old First, let’s take a look at this factor from the perspective of younger couples and young graduates that may plan on having children in the future. Most cheap condominiums are on the smaller side, and thus may not be suitable for their future needs and plans. Most 4-room HDB flats are about 95 sqm in size, compared to most cheap condominiums that are 45 sqm in size. The size of the condominiums may thus not be ideal in the future. On the flip side, couples that have no intention of having children. Or perhaps singles in this age group that can afford such a price point, may find that cheap condominiums are ideal for their living situation. Condominiums are able to offer great amenities and possibly more privacy than HDB flats, and have the potential to be a great investment property for first-time homeowners. If we disregard the smaller size of most cheaper condominiums. Moreover, singles could also choose to buy such a unit, and continue staying at their family home while renting out this property for the first few years, before moving back in once the mortgage has been covered by rental income. ### B. Age 35-55 years old Secondly, for middle-aged folks, regarding size, there are two key problems that we should consider. The first one, like above, is if there is enough space for children to live in. Those in this age group may typically already have children. They have to keep in mind that moving into a condominium may not necessarily always be an upgrade. If size is the key factor that holds the most sway in their decision-making process. There are resale HDB flats out there that are actually bigger than condominiums, that may be cheaper in price as well. The second problem would be the fact that as the parents of those in this age group grow older, they may need more care. If the situation arises where one’s elderly parents may need to move into the same home so that they can be taken care of more easily, the unit may then again be too small. In both these cases, we see the importance of having a larger house when taking into consideration one’s future plans and outlook. For those in this age group, cheaper condominiums may not be the right fit, considering the factor of size. ### C. Age 55 years old and above Thirdly, for those older than 55 years old, the size of cheaper condominiums may just be the perfect fit for their needs. A home for elderly people that is smaller may actually be better, for a multitude of reasons. One reason would be that the elderly do not usually require much living space. And another more practical reason would be that a smaller unit means less surface area to clean, which is something that may be a key consideration for the elderly. ## 2. Accessibility The next factor we’ll discuss is location of the condominium, and its accessibility Most cheap condominiums are located in the Outside Central Region (OCR) districts, and also in non-mature estates. Do check out our previous video about Singapore Region. Singapore Region Map Photo:Property Guru This means that the area around such condominiums are likely to be less developed, and may not have many shopping malls or schools in its vicinity. For this factor, we’ll group the first and second age groups together, to address the main problem: proximity to schools. ### I. Schools The location of the condominium plays a huge role in determining where children end up schooling. For those in the first age group, who may or may not have children in the future, they should keep this in mind if they have a specific school that they want their children to attend in the future. Gan Eng Seng Primary School Photo: CIAP Architects This applies for those in the second group as well. Upgrading to a cheaper condominium comes with its benefits. But this may mean that children would have to transfer schools, or their next level of education will be spent in a school in an unfamiliar neighborhood. Moreover, for working adults who do not own a car, this accessibility might be a key factor to consider when deciding to buy a cheaper condominium, especially those with children. ### II. Transportation Costs What many forget to account for is transportation costs, which may actually offset the money saved from buying a cheaper condominium. Taking public transportation across long distances or hailing taxis to work five days a week eats into your accounts more than you think. For the last age group, the location and accessibility of the property may not actually be a huge problem. Why do we say this? Well, if you’re looking for a private property as your retirement home, chances are you’re already retired. This means that there’s not much of a reason for the elderly to leave their homes, other than maybe to take a walk around the neighborhood, or to venture out to the nearest wet market to pick up groceries for the week. While the nearest shopping malls or markets may not be in close proximity to the condominium. One trip to the grocery store a week isn’t really much of an inconvenience. This is even more so if you own a car. Perhaps one thing to consider is if there are hawker centres or coffee shops nearby. Because not every elderly is able or willing to cook every day. All in all, we think that this factor may hinder the first two age groups the most, but doesn’t really apply to the last age group. ## 3. Alternatives Lastly, the last factor we definitely have to consider is alternatives ### A. Age 20-35 years old For the younger folks, a perfectly acceptable alternative would be a BTO flat, or perhaps a resale HDB flat. There are definitely a lot of downsides and unpredictable factors when we talk about owning a cheaper condominium. In the first place, BTO flats are likely to be both more affordable and larger than even the most affordable condominium unit. Even if you’ve been unsuccessful in obtaining a BTO flat for awhile, we’d still recommend a resale HDB flat instead of a cheaper condominium. In fact, just as we’ve covered in this article, we actually believe that resale HDB flats can be a better option as compared to a BTO flat. ### B. Age 35-55 years old For those in the 35-55 years old age range, your top priority right now may be simply to upgrade to a nicer property. However, we should keep in mind that condominiums have lost the prestige that used to be attached to it, as owning a condominium has become more and more common. Large 4 Room HDB Flat Now, a true ‘upgrade’ would come in the form of practicality. A larger HDB flat in a mature estate would be a good example. Just as we’ve covered in our article, we believe that it is possible for a larger resale HDB flat to be a better long-term investment than a cheaper condominium. ### C. Age 55 years old and above For those in the silver generation, deciding what property is going to be your retirement home is a decision that should not be taken lightly. As we’ve covered in this article about where you should stay for your retirement home! There are a multitude of options available for you to choose from: it simply depends on what your priorities are. For example, if you’re fine with a property that’s less luxurious and prioritise living in a house close to your children and grandchildren, a 2-room flexi resale HDB flat may be the way to go. ## Contact Us Do share your opinions on this article with us by dropping us an email ! Contacting us through our Facebook and Instagram pages. What age group do you fall under? Do you think you will still want to buy a cheaper condominium after reading this article? If you’re still unsure of what property best suits your needs, no matter your age group. Do feel free whatsapp message or call KC at +65 8809 2889! At Home Quarters, we take all your priorities and circumstances into account before we advise you on how to sell your property, or what property we believe you should buy. We’d be happy to provide you with various analyses, advice, and any sort of assistance you may require, whether you’re a buyer or a seller. Leave your contact details and any queries down below, and we’ll contact you ASAP. That’s it for this article! Stay safe everybody, and remember, call Home Quarters and start packing! ## How to earn S$572,700 from Executive Condominiums (ECs) ?

Singaporeans seem to have a deep-rooted belief that Executive Condominiums (ECs) almost always guarantee a profit. Unlike private condominiums, buyers are able to buy ECs at a considerably more affordable price than their private counterparts.

Lilydale PHOTO: iproperty

Coupled with the option of taking a Central Provision Fund (CPF) grant when buying the EC, many Singaporeans who are unable to buy BTOs or HDB flats because their incomes exceed the income ceiling. But aren’t too comfortable with spending an exorbitant sum on a condominium yet, eye ECs as potential goldmine investment properties.

While that statement itself is debatable, Others have already published extremely detailed analyses on how realistic that belief is: what we want to do here is to go one step further by asking, for those who have decided to buy an EC while keeping in mind all the risks, when exactly should you sell your EC to maximize your profits?

In this analysis, we’ll be breaking down 12 ECs that have launched, which have obtained their Temporary Occupation Period (TOP) between the years 2003 to 2013.

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### Here’s how the article is going to go:

1.     We’ll present a table of these 12 ECs that show the average price per square foot (psf) of their early sales units, as well as the average price psf after 5 years, 10 years, and 15 years, where applicable.

2.     We’ll then break down the data, and present their annual price appreciation percentage over the years, highlighting the key statistics of when their Minimum Occupation Periods (MOPs) have ended (5 years after the TOP date), and when the ECs have become fully privatized (10 years after the TOP date). From there, we’ll be able to see key similarities between the price appreciation of all the ECs. And from the trend, be able to conclude the peak average price appreciation for these 12 ECs.

3.     Lastly, we’ll take a look at some ECs that have done either spectacularly well or badly, and speculate why these exceptions occurred.

4.     We’ll conclude the article with when we believe you should sell your EC to maximize your profits.

### 1. Average price per square feet of ECs over 15 years

In this section, let’s take a look at how the average psf of ECs have changed since the sales of its early launch units, then at the 5-year, 10-year, and 15-year mark after it TOPs, where applicable.

Average Price per Sqft of  Executive Condominiums in the past 15 years

The above table confirms a few things: firstly, ECs almost always guarantee profits, once sold after its initial MOP period has ended. There have been a few unprofitable transactions for ECs, but these occurred mostly for older ECs that aren’t on the list of 12 ECs that we’ll be analyzing today.

We can see from the table though, that on average, even after 15 years, ECs can still be sold at a profitable price, assuming you bought an early sales unit.

Another thing we observe is that the average psf continues to rise until about 10 years after the TOP period. With the exception of La Casa, whose average psf dropped by roughly 6.57%. At the 15-year mark though, we see that almost all of the average psf of ECs have dropped, with the exception of Bishan Loft and The Esparis.

In summary, the table tells us this: based on the past data of these 12 ECs, ECs continue to be profitable even 15 years past its TOP date, provided you buy an early sales unit. Moreover, the average psf of ECs seem to peak around 10 years after its TOP date. Of course, the table above is just a super simple analysis and breakdown of EC data to draw out the above two conclusions.

However, it’d be pretty obvious to most that, of course profits are going to continue to rise beyond the 5-year mark, and we’ve already seen that they usually peak around the 10-year mark; what we want to know is if this rise in profits is worth the wait.

So, let’s go one step further. Let’s look at the real annual appreciation of all these ECs, and see how well they’re doing from year to year to find out exactly when their price appreciation stagnates and decreases. And based on past data, when exactly you should sell your house to fully maximize your profits.

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### 2. Annual percentage change in average psf of ECs

First of all, you might be asking why this annual appreciation analysis is even necessary? Wouldn’t most simply want to know when the price of their unit peaks so they can sell it at the highest possible price to obtain the maximum profit?

Well, you’re correct; most people would use the above method to obtain profit in hard cash. And use part of the money earned to upgrade to perhaps a bigger condominium, or even a large HDB flat. However, some people may prefer to sell their EC unit once it has hit its peak appreciation rate, rather than its peak price.

This is so that they can use the money they have earned from the transaction to perhaps buy another property that can reap higher returns in the future, and have better price appreciation prospects. These people are likely either investors, or small families who do not mind moving around to gain the maximum returns from selling their properties.

Bishan Loft Average Price PSF

We can see that it experienced the greatest appreciation of 24% between 2009 to 2010, with its average price psf increasing by about $158 from its previous year. From 2010 to 2009, although its average price psf increases still by about$144, this increase in price is less than that (by $14) of the previous year, and thus the price appreciation is only 18%. Basically, an increase in the average price psf only guarantees that the price appreciation is a positive percentage. But does not necessarily mean that price appreciation has peaked. We hope this explanation makes things a little clearer for you! With that out of the way, without further ado, let’s get into the analysis. Here’s the graph we’ll be looking at: ECs Average PSF Appreciation The line graph may be quite a bit to take in right now, so let’s break it down into two parts: • Appreciation at the 5-year mark, when the property first MOPs (assuming you moved in right after it TOP’d); • And the appreciation at the 10-year mark, when the property is first fully privatized. From the get-go, we see two pretty obvious trends at the 5-year mark: One group of ECs see their price appreciation continue to increase between the 5-year mark until the 7-year mark, while another sees their price appreciation immediately drop after the 5-year mark has been reached. For both groups though, the price appreciation generally never peaks again, with the exception of Park Green between Y13 and Y14. While there are various factors and reasons that can account for this discrepancy, when we look at the overarching trend, we can basically conclude that peak appreciation rate is hit right when the property MOPs, until about 2 years after its MOP. After that, from the data of the 12 ECs gathered above, we see the increase in the average psf of its units slowly decrease. Let’s take a look at what was just said in a group bar chart format: For the first five ECs in this list, we see the price appreciation peak in Y5 whereas for the next five ECs, the peak appreciation can be seen to peak around Y6. In Y7, the price appreciation is still a positive percentage but we can see that in Y10 and beyond, the average price psf mostly depreciates, or appreciates at a very low rate. TLDR; the peak appreciation rate is reached on the year that the property MOPs, and within 1 year its MOP. ### 3.Analyzing another observable trend and one outlier Another slightly less obvious trend we can observe is that some ECs see their price appreciation percentages slowly increase again at the 10 to 12-year mark. Let’s take a look: This is just the zoomed-in version of the data, though – if you go back to the first line graph we presented, we can observe that this price appreciation is quite minimal compared to what it was around its MOP period. The useful information we can draw from this graph, though, is that if the price of your EC has been steadily decreasing and you haven’t sold it yet, you may want to hold on to it for a little while longer until the Y10 to Y11 period, where the price of your unit just might increase by a little bit again. This, however, is definitely not a one hundred percent guarantee (is there anything in the world that is?), and out of twelve ECs, we’ve only seen this trend in four – what we would advise you to do if this scenario applies to you, is to talk to us: leave your contact details down below and we’ll contact you shortly, help you thoroughly analyze the circumstances surrounding your EC unit, and recommend the best possible solution. ### Bishan Loft One anomaly we’d like to bring to the table for discussion today is Bishan Loft, and in particular, how much its average price psf has increased over the past 15 years. Its average price psf declined a little between 2014 and 2017, but bounced back in 2018 to$1129. When it first TOP-d, the average price psf of its early sales units was about $440.8. That means that between 2003 and 2018, Bishan Loft saw a whopping 156% increase in average price psf. That’s a pretty insane profit margin, considering one square foot increased in price by about$700 alone.

So what are some reasons as to why the average price psf of units in Bishan Loft shot up, and continues to rise even now?

We’ll be taking a look at that in our next article; stay tuned for that piece!

### Conclusion

To sum up the entire article, two conclusions can be made:

a. According to the data drawn from the past transactions of these 12 ECs mentioned above, the peak average psf is usually reached around 10 years after it TOPs, after which it declines, with Bishan Loft and The Esparis being the two exceptions to this conclusion.

b. Similarly, we see that the peak price psf appreciation is reached right after its MOP has been reached, and within 1 year after the MOP has been completed.

Therefore, here’s what Home Quarters recommends:

Regarding the first case, if you’ve bought the EC with the intention of upgrading to, for example, a condo or a larger HDB flat in a prime location, we’d highly recommend you to sell your EC after 10 years, as that’s when you’ll get the highest profit margin in hard cash as compared to other years.

Keep in mind, though, that this conclusion we have drawn is just based on data on these 12 years; we’ve already seen Bishan Loft and The Esparis as exceptions where their prices have continued to rise even at the 15-year mark, which means that the opposite can also hold true: the average psf of ECs may decline before the 10-year mark has been reached in the future.

With regards to the second case, if you’re a property investor or you’re willing to change properties often to achieve maximum returns, selling your unit the moment it MOPs or within 1 year of its MOP period would be best, as peak average price appreciation is reached around that period.

By selling your property at that period, you would be able to further invest the profit gained from that transaction into perhaps another property that may have higher returns than your EC unit in the next 5 to 10 years.

### Take out quiz to find out your eligible!

Answer the Questions below to find out when should you sell your EC!

1.
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Still confused about this article? We understand it’s a lot to take in – the property market is a constantly changing mass of numbers, statistics, prediction, and a little bit of luck.

However, at Home Quarters, we can provide you with various analyses, advice, and any sort of assistance you may require, whether you’re a buyer or a seller. Leave your contact details and any queries down below, and we’ll contact you ASAP.

We’d also like to let you know that all the raw data that’s contributed to the making of the charts and tables above is available to all our readers – the link to the data sets will be put down below.

Simply fill in your contact details, and you’ll immediately be able to download the files and take a look. We’d also love to hear your opinions on this article – do you think it was analyzed well and accurately? What do you disagree or agree with?

You can let us know through commenting on our YouTube video that we did on this article, sending us a quick email, or hitting us up on our Facebook and Instagram pages to shoot us a quick direct message.

That’s it for this article! Stay safe everybody, and remember, call Home Quarters and start packing!

## Push for greater inclusivity may drive down resale potential of HDB flats

With a firm emphasis on equal opportunity and inclusiveness, National Development Minister Desmond Lee discussed the possibility of regulating the reselling of future Build-To-Order (BTO) flats located in prime locations.

National Development Minister Desmond Lee PHOTO: MCI

This announcement should not come as a surprise. In March this year, the previous Minister of National Development, Mr Lawrence Wong, had already highlighted in Parliament the need to curb “social stratification” that may arise due to the relatively high prices of resale Housing Development Board (HDB) flats in mature estates and prime locations, as shown below.

Data taken from hdb.gov.sg

This may come as a surprise. Didn’t we just see in the news that HDB home prices have been dropping in the past 2 years? It seems that with the startling number of million-dollar and above resale HDB flats sold last year and in the first 10 months of 2020. The government has decided that it needs to firmly clamp down on the number of expensive resale HDB flats in prime locations being sold.

Before we can go into the exact details that Minister Lee highlighted, we might ask,

### What’s the problem with these Resale HDB flats being sold at high prices?

Average Price per Sqft of resale HDB flats in CCR vs OCR regions in the past 15 years

It’s an undeniable fact that houses located within the Core Central Region (CCR) are relatively more expensive to their Rest of Central Region (RCR) and Outside Central Region (OCR) counterparts, for reasons such as surrounding amenities and their convenient locations.

[psst: still not sure what exactly the CCR, RCR and OCR are? Check out our super short video that succinctly explains these regions here.]

Why, then, is the government trying to interfere with the free market?

### This is because the original goal of HDB flats being accessible to all members of the public at affordable prices has been skewed.

Minister Lee stressed that, as the purpose of public housing was to allow Singaporeans of all backgrounds to live in their desired regions, the “principle of fairness” was of utmost importance.

Data taken from squarefoot.com.sg

He explained this further by establishing that while BTOs in prime locations are sold to homeowners at a highly subsidised price through ballots to ensure that flats in all locations are made affordable to all hopeful applicants, in the future, the price of such flats undergo steep appreciation, allowing past homeowners to earn large profits with low initial cost.

From the table, the hefty profits are earned by all sellers. BTOs in prime locations and mature estates reap far greater profits than their non-mature estate counterparts.

After these flats undergo a few rounds of buying and reselling, it is highly likely that “only wealthy people can afford this type of housing”, limiting the diversity of households living in prime locations.

Thus, he has announced that the Ministry of National Development (MND) will be implementing cooling measures in the near future to prevent prices from soaring.

### So what measures are being implemented, exactly?

Adopting a two-pronged approach, Mr Lee stated that the MND will continue to purposefully include two-room flats for elderly occupants and rental flats for lower-income households. Even in future estates located in the CCR, so as to boost inclusivity within estates. Furthermore, the MND may be rolling out new policies to curb the growing prices of resale HDB flats in the near future.

In a Facebook post made on 11 December, he notes that as the government has been taking feedback from the general public. The MND has received various suggestions to introduce “some restrictions on the resale conditions for future prime area projects”. However, he does not specify the exact measures that will be implemented.

## Prediction

### So, can we predict some of the measures that will be rolled out?

Let’s go through four measures that many speculate may be implemented.

• Increasing Minimum Occupation Period (MOP): The government may choose to extend the current compulsory 5-year MOP. Forcing homeowners to stay in their BTO for another few years before they can sell their flat. However, many speculate that this would simply delay the inevitable sale of flats at windfall prices for a few years.  Moreover, this would inconvenience those who genuinely need to sell their flat after the usual stipulated MOP period.
• Shortened lease: The government may choose to shorten the lease of HDB flats in prime locations. While interested parties may still end up buying these resale flats. They might do so at a lower price as they believe the value of the house has dropped. However, this may put those who bought the flat for the sake of staying in it for as long as possible at a disadvantage.
• Resale to HDB: Some have speculated that HDB may enforce a rule stating that any flat in the CCR can only be sold back to HDB, who buys it at a set price based on the years left on its lease. HDB will then be the sole seller of any resale HDB flats in the CCR, at more affordable prices. While this may seem practical on paper, such a policy may cause dissent amongst homeowners as they are forced to sell their own flats at a price that they cannot control.
• Limiting Final Price: Some have suggested that the government put a cap on the selling prices of flats in prime locations. However, this measure may simply backfire as it simply invites more buyers to buy the house at the maximum price. In other words, the price ceiling may simply turn into a fixed price floor.

## Preparation

Taking into account these potential measures, How should we prepare ourselves for any policy changes?

While nothing will be confirmed until the MND officially implements any policies. We should begin viewing investment properties with increased prudence, and prepare ourselves for drops in the prices of resale HDB flats. Especially those in the CCR region, or larger flats in mature estates.

Most importantly, as buyers, we will have to consider our options with even more cautiousness. As we may see the future prospects of potential flats be severely limited in the near future.