Over the years, ECs have proven to be highly profitable for homeowners. Let’s look at why ECs in Singapore are regarded as one of the best-performing property investments for middle-income families:
1. Lower Purchase Price = Higher Capital Gains
The biggest advantage of buying an EC in Singapore is the price gap between ECs and nearby private condominiums — often as much as 20% to 30%. Because of this lower entry price, buyers enjoy higher upside when the EC is sold after the 5-year MOP or once it becomes fully privatized after 10 years.
For example, EC projects like The Quintet in Choa Chu Kang, The Esparis in Pasir Ris, and The Rainforest in Choa Chu Kang have all seen price increases of over 50% from launch to post-MOP resale. Many past buyers have walked away with six-figure profits.
2. High Resale Demand After MOP
Once the 5-year MOP is fulfilled, the EC can be sold to Singaporeans and Permanent Residents. As a result, there’s strong resale demand for ECs, especially those located near MRT stations, schools, and business hubs. After 10 years, when the EC becomes fully privatized, its resale potential increases even further — allowing sales to foreigners as well.
3. Rental Income Potential
Some EC owners choose to lease out their units after MOP. With modern amenities and spacious layouts, ECs are attractive rental homes, especially in city fringe or developing districts. This gives homeowners an additional stream of passive income while still holding onto a growing asset.