Why Tampines EC is Undervalued Compared to Other Areas
Why is Tampines EC undervalued compared to other areas? The EC was privatised in 2013, making it more profitable than MOP. Young professionals in particular are attracted to Tampines for its affordable price tag. It is also situated in the east. Read on to learn about the advantages of buying an EC in Tampines! There are many other advantages as well, but we will look at the most notable ones in this article.
ECs are more profitable upon privatization vs. MOP
A comparison of ECs sold after privatization and those sold after MOP shows that the former were more profitable. The reason why ECs are more profitable after privatization may have to do with the longer time horizon of MOP, factoring in inflation. It may also have to do with the economic downturn. In any case, there are numerous reasons to sell ECs after MOP.
In a decade, the capital appreciation rate of ECs surpasses that of private condos. That is because the price of an EC is lower than that of its private counterpart, and it is built by a private developer. The price gap between private condos and ECs usually starts at 20 per cent. After ten years, the price gap becomes less than five per cent.
The vacancy rate of ECs is at 8.4 percent. The increased completed supply of ECs translates to a higher vacancy rate. Aside from that, some owners may purchase an EC purely for investment purposes and leave it vacant during MOP. Ultimately, this may prove to be a good investment strategy for investors. The vacancy rate will increase once the market stabilizes.
After MOP, owners can sell their ECs to Singaporeans and Permanent Residents. However, the price gap will not widen significantly unless the ECs are sold to foreigners. This is because foreigners can only purchase ECs after 10 years. In this case, ECs sold after MOP are still more attractive to locals and PRs. This difference is due to the timing of the sale.
ECs are a great long-term investment. They tend to have lower initial purchase prices than MOP and yield higher rental income. The EC price has fallen since its peak and has moved to the S$750-770 per-sf range. The 30 per cent MSR has narrowed the current demand pool. However, developers have tried to ensure that new EC units remain affordable for locals.
They are a popular location for young professionals
Young professionals who want to live in a place near major shopping centres and the airport will be interested in Tampines EC. It is near several good schools, and the proximity to public transport means that you will never have to worry about late buses, long lines, or traffic. There are several public transport routes available from Tampines EC, and the area has ample room for new developments.
As a relatively new neighbourhood, Tampines EC is still relatively undervalued compared to other areas for attracting young professionals. However, it is an up-and-coming neighborhood with many restaurants and popular hangouts. If you’re looking to live in a place close to the city, you should consider living in the Baker neighborhood. This is a cosmopolitan neighbourhood that’s close to the Central Business District and Downtown. The master plan includes a shopping mall, a multi-purpose hall, more public space, a food court, and popular fast-food outlets.
They are located in the east
If you are interested in investing in property in the EC, you should know that the Tampines Green EC is a prime area. It is near the Tampines Hub and has been recently developed to include neighbourhood parks and public spaces. Its master plan will also have improved access to the MRT system. By 2021, it should be fully built up. This is a good investment if you have a young family and want to live near amenities.
As the name implies, this area is in the centre of Tampines Transformation. The town master plan, Tampines Town Master Plan, outlines a comprehensive development scheme in the area. New neighbourhoods and projects are being planned to create a greener, inclusive community. The area is also well-connected to the rest of the city. If you are interested in investing in Tampines EC real estate, Parc Central Realty can help you find the perfect property.
Parc Central – This project, named after New York’s Central Park, is the first EC development in Tampines since 2012. It features five-bedroom flats with open-plan living and multigenerational living areas. The developer is a joint venture between Sunway Developments and Hoi Hup Realty. Sophia Hills, a project by the same developer, won several awards for its design and functionality. It received Gold at the FIABCI World Prix d’Excellence Awards.
Tampines EC is located near three MRT stations, Tampines, and Expo. It is also connected to the Downtown Line via the East West Line, and this extension will be completed in 2020. Tampines EC is home to most of Singapore’s malls outside the central area. The two major malls are Festival Walk and Our TI Hub.
The Mayfair and The Scala are two ECs near each other, but the former has a better location. Both are less expensive than Eastvale, but the former has a higher lease start date and is close to the Lorong Chuan MRT station. Eastvale is located within 1.1 kilometres of the Pasir Ris MRT station. It is also near the Hai Sing Catholic School, and Casuarina Primary School.
They are undervalued compared to other areas
In terms of price appreciation, the current EC market in Singapore is still undervalued. Prices in the prime neighbourhoods are likely to increase, as the supply of land is limited. However, the price of ECs will still be good value for money. The best selling ECs in the region include The Tampines Trilliant and Twin Waterfalls. Compared to other neighbourhoods, these ECs will likely gain in selling prices above the MOP price.
While some investors believe that the EC market is still undervalued, there are several good reasons to purchase in this neighbourhood. Among the most important factors is the proximity to the MRT station. The MRT station is only 3 bus stops away. In addition to its proximity to the MRT, this region is also convenient for commuters. The MRT station in Tampines Avenue 10 is located just 5 minutes away from the development site. However, it’s difficult to rent out your unit in the EC market for the first five years because of the regulations. In addition, the rental income from ECs may not be as lucrative as that of private condos.
As for the other factors, the EC market has been more profitable than the MOP cycle. This is partly because the ECs have longer time horizons and can benefit from inflation. However, the MOP peak was in 2013/14, and this area has only marginal gains. So, before acquiring property in Tampines, make sure you take a close look at the performance of other ECs in the vicinity.
Located near the Tampines MRT station, this neighbourhood is easily accessible from the airport and the downtown. There are also reputable schools, parks and public transportation. It is also a good choice for young couples or working professionals, and is close to the new Cross Island Line, a rail transit project that is planned to serve the entire city. It will also be convenient for commuters to take the MRT from downtown to Jurong Industrial Estate.