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Are you contemplating what is the best time to sell your Executive Condominium (EC) post-Minimum Occupation Period (MOP) for maximum profit?
Most EC owners like you are sitting on a 6-figure paper profits, but unsure of what to do next.
In this article, we’ll explore some key pointers that can help you make an informed decision.
“EC owners pocketed more than half a million in profits after selling upon reaching MOP!”
I’m pretty sure this was one of the reasons you purchased an EC like many others.
Executive Condominium (EC) was first introduced as a special product that only the “sandwich class citizens” are eligible to purchase. Most EC buyers are first-time homeowners with higher-than-average income earners.
People who are earning too much to qualify for a BTO, but not enough to afford a private property.
Also, EC offers your family the same exclusive facilities that private condos offer like swimming pools, BBQ pit, and clubhouse.
Whether your goal of investing in an EC was to enjoy a lifestyle upgrade or make profits, upon reaching MOP, you will start to see some of your neighbors selling their units.
You too, will be thinking, should you do the same?
“When My EC Hit MOP, Hold Or Sell?”
Just like all HDB products, you can only start selling your EC on the resale market after fulfilling the 5-year Minimum Occupation Period (MOP). You have 2 options now:
Continue to hold forever
Assuming your starting agenda of buying an EC was to make a profit and exit upon MOP, then holding onto it forever is unlikely the way to go because you are aware that the longer the holding period, the more opportunity cost will incur.
Property values increase alongside inflation, meaning the same amount of profits might get you “less” later than it will today.
Sell to capture profit
The property market is dynamic and cyclical. Generally, it’s ideal to sell when the market is on an upward trend.
As of the current market, most EC owners are sitting on a substantial amount of profits.
Some have already grabbed their profits and moved on to a higher-value asset whilst some are still waiting for the “best time” to sell to maximize their earnings.
Difference between the 5th and 10th-Year Mark
This is a common question for many EC owners.
Some say sell at the 5th year mark will get you the maximum profit while some say wait till 10.
The main difference is in the buyers’ profile. You may sell to a wider pool of buyers in different time stamps.
1. 5th year – “Semi-Privatized”
Once your EC hits the 5-year MOP, it becomes “semi-privatized”.
You can now sell your EC to Singapore Citizens (SC) and Singapore Permanent Residents (SPR) on the open market.
This means a bigger pool of potential buyers compared to the initial restricted sale conditions where only SCs are allowed to buy an EC.
One notable point is that when buying a new MOP EC, buyers are using the Total Debt Servicing Ratio (TSDR) framework where they can now borrow a larger loan quantum compared to buying new ECs when the loan amount is constrained by the Mortgage Servicing Ratio (MSR) framework.
A larger pool of buyers with more purchasing power will surely favor those EC owners who are looking to sell for a handsome profit.
2. 10th year – “Fully Privatized”
Once your EC reaches the 10-year mark, it becomes “fully privatized”.
It will no longer be governed by the Housing & Development Board (HDB) rules.
It is now treated the same as other private condominiums and is open to foreign buyers.
You might say, “Now foreigners can buy; an even wider pool of potential buyers for my fully privatized EC, demand and prices will sure go up!”
Let’s be frank here, most ECs are located in the outskirts region of Singapore.
Most non-PR foreigners prefer to either rent or buy a unit in a central or prime location for better accessibility.
Even though ECs are often more affordable compared to private condominiums in central locations. It could likely attract some foreign buyers looking for value purchases. However, high-net-worth individuals might opt for more premium properties over an EC.
Moreover, with Additional Buyer Stamp Duty (ABSD) adjusted from 30% to 60% for non-PR foreigners, how much demand will there be for your 10-year-old EC?
Should I sell at the 5th or 10th-year mark?
Let’s look at some growth charts when an EC hits the 5th and 10th-year mark.
As illustrated in the charts, the biggest growth happened from the beginning, on the 5th-year MOP mark, continuing to go up at moderate paces till the 10th-year mark.
After hitting the 10th-year mark, prices start to show signs of slow growth and stagnation.
Realistically, you want to consider selling your EC before it reaches the 10th-year mark.
Holding your EC beyond it is fully privatized may not reap you the maximum profit. Because the longer you hold the more opportunity costs will incur.
Keep in mind that 10 years down the road as you age, the loan amount for your next property purchase may become significantly lower, making it harder for you to move up the property ladder.
Factors Affecting Your EC Maximum Profit
Hypothetically say, you are ready to sell your EC, below are some factors that will affect your maximum profit:
1. How many of your neighbors are also selling?
Just like HDB hitting its MOP and a newly TOP condo, many owners will sell off their units to cash out for various reasons.
Some cash out to buy a higher-value asset with increased income while some utilize the profits to fully pay for their next home. I have also seen some owners cashing out to fund their children’s education.
The point is if your neighbors are having the same thought of cashing out, there will be many units on the market for sale at the same time.
With plenty of choices available to the buyers, it will be challenging to get a decent offer, thus affecting your maximum profit.
2. Number of HDB upgraders in your neighborhood
More often than not, HDB upgraders buy their next home in the same neighborhood or nearby due to emotional attachment and accessibility.
There will certainly be some older resale counterparts selling at around the same price as you.
Nonetheless, if the price gap isn’t too big, most HDB upgraders will likely opt for the newer one.
So if your EC is surrounded by a big pool of HDB upgraders who just cashed out from their MOP flats, the demand for your newly MOP EC will be high, thus giving you a higher chance to maximize your profit.
3. Future development plans in your area
This is a bonus in my opinion.
As of writing, the example I can think of would be the 2 ECs in Tengah, Altura, and Lumina Grand.
Both are expected to receive TOP in Q42026 and Q32027 respectively.
The 2 ECs are within a one-kilometer radius of the famous Anglo-Chinese School (Primary) which will be relocating to Tengah by 2030.
In addition, more upcoming infrastructure such as malls, and MRT will be built in Tengah.
So if you have bought or are looking to buy a unit in Altura or Lumina Grand, these future development plans will certainly have a positive impact on your property value, maximizing your profit in time to come.
What To Buy Next After Selling?
My take on this question varies from person to person, as everyone’s needs and current situations are different.
Some people choose to use the profits to upgrade to a higher-value asset, taking leverage to increase their net worth via property asset progression.
Others might opt to use these profits to pay off their next house, aiming to be debt-free and focusing on other aspects of life.
Another reminder, you can’t transition back to an HDB flat immediately upon selling your EC.
It is because once it reaches MOP, it will be treated just like other private properties.
Assuming you are below 55 years old and sold your EC, you have to wait 15 months before you can buy a resale HDB flat. (30 months for BTO)
Therefore, before selling your EC, it’s crucial to carefully consider and plan your next steps, otherwise you might end up homeless.
Final Thoughts
Back to the topic, what is the best time to sell your MOP EC for maximum profit?
The answer only YOU WILL KNOW.
Many EC owners indeed enjoy 6-figure profits selling upon MOP at the 5th-year mark and seamlessly investing the profit into their next higher-value property asset.
These are all pre-planned and executed simultaneously.
Even if you intend to hold till the 10th-year mark, you will still be able to enjoy a substantial amount of profit compared to the price you first bought.
The only thing you have to be aware of is the potential opportunity cost from the 10th year onwards. What are you missing out on?
Ultimately, the best time to sell should be based on your readiness, a clear and well-thought-through investment plan, and your family’s needs and priorities.
Before signing off, I would like to share a quote I once heard from a veteran investor:
“I don’t expect to catch the highest point; I’m content with making a profit.”
This quote reflects a humble and practical investment mindset, it has stayed with me ever since.
It reminds me that as investors, neither should we be seeking to sell at the peak nor buy at the lowest point, because none of us can predict the future.
But rather, we should be content with making reasonable profits amid market fluctuations and continue moving forward.
Thinking of selling your EC? Contact me for personalized advice and let me be part of your journey to a bigger net worth!
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