ECs are a good alternative to private condominiums given their low price and subsidised land prices. Although these condos are not as centrally located as private condos, they are still a good option to consider for investment purposes. However, it’s important to understand the pros and cons of this type of condo before investing.

ECs are a subsidised condo

Executive condominiums (ECs) are privately developed apartments with condominium-like amenities that are subsidized by the government. These apartments are generally cheaper than private condos, and former National Development Minister Khaw Boon Wan has compared them to Lexus cars. Although they may be cheaper, ECs do have some restrictions. For example, EC owners cannot rent out their whole unit. However, once these restrictions were lifted, ECs outperformed private condos when it came to capital appreciation.

Entry prices for new ECs are much lower than those of new launch condos. However, the price …