According to a study by STProperty, buyers who bought an EC this year would have saved 31.7 per cent on average over purchasing a private home from developers. This is higher than the 23.1 per cent savings EC buyers would have enjoyed in 2011. This makes ECs a good value proposition to the aspiring sandwiched class who do not qualify for public housing but can ill-afford private condos, STProperty says.
However, we also need to know what is the catch behind these differences:-
1. EC buyers have to live in premises during the first 5 years; ( Minimum Occupation Period – MOP) before you are allowed to sell them in the open market;
2. You are also not allowed to rent out the whole unit during the same period as per HDB regulation;
3. Upon complying the 5 years minimum occupation period, you are only allowed to sell them to local Singaporeans or Permanent Residences only. All restrictions will only be lifted after 10 years.