Executive Condominiums (ECs), also known as executive condos, have become an increasingly popular housing option for Singaporeans in recent years. They provide a unique blend of affordability, luxury, and exclusivity, making them an attractive choice for first-time homebuyers and upgraders alike. In this guide, we will explore what ECs are, their benefits and challenges, how to choose the right one for you, and financing options. So, let's dive in!
In conclusion, Executive Condominiums offer a unique blend of luxury and affordability, making them an attractive choice for many Singaporeans. By understanding the benefits, challenges, and factors to consider when choosing an EC, you can make an informed decision that best suits your needs and budget. Now's the time to explore this exciting Singapore condo option and make your dream home a reality!
Challenges of owning an EC
Minimum Occupation Period (MOP)
Owners of ECs must fulfill a 5-year HDB MOP before they can sell their condo for sale in the open market.
There are no restrictions on the Singapore Permanent Resident (PR) purchasing a Resale EC in Singapore because it is similar to "private housing." However, foreigners can only buy the Resale EC from the open market once it's fully privatized (after 10 years from TOP).
Financing an EC Purchase
Home Loans and Grants
When buying an EC, you can choose to take a home loan from a bank. Compare the interest rates and loan packages available to find the best option for you. Remember to factor in the CPF Housing Grants you are eligible for when calculating your budget.
Legal Fees and Stamp Duties
Apart from the purchase price, you will also need to budget for legal fees and stamp duties. The Additional Buyer's Stamp Duty (ABSD) does not apply to ECs, but you still need to pay the Buyer's Stamp Duty (BSD).
The main difference is that ECs are subject to government regulations, such as eligibility criteria, a Minimum Occupation Period (MOP), and resale restrictions. They are also eligible for government grants and subsidies, unlike private condominiums.
Foreigners can only buy an EC after it has reached its MOP of 5 years and has been privatized after 10 years.
You need to meet certain criteria, such as being a Singapore Citizen, having a monthly household income not exceeding S$16,000, and forming a family nucleus.
Eligible first-time buyers can receive CPF Housing Grants of up to S$30,000.
Some upcoming EC projects in 2023 include Tengah Garden Walk EC, Yishun EC, Tampines Street 62 EC, Altura EC, and new launch condo projects in prime districts.
Executive Condominium in Singapore: A Comprehensive Guide for Singaporeans in 2023
Home | Executive Condominium in Singapore: A Comprehensive Guide for Singaporeans in 2023
What is an Executive Condominium (EC)?
An EC is a hybrid between public and private housing in Singapore, designed to cater to the needs of the "sandwiched" middle-class population who may find private condominiums like freehold condos too expensive and HDB Condo too basic.
Executive condo eligibility criteria for ECs
To purchase an EC, buyers must meet certain eligibility criteria, such as:
At least one applicant to hold Singapore Citizenship
The household income must not exceed S$16,000 per month
Applicants must form a family nucleus
Buyers must not own any other property within 30 months before applying
Differences between EC and private condominium
While ECs and private condominiums share many similarities, there are some key differences. ECs are developed and sold by private developers, but are subject to certain government regulations. They come with a lower price tag and are eligible for government grants and subsidies, unlike private condominiums. However, they have a Minimum Occupation Period (MOP) and resale restrictions.
ECs have a strong appreciation potential, as they often appreciate in value upon reaching their MOP and privatization after 10 years.
ECs are generally priced 20%-30% lower than private condominiums, making them an affordable option for those who desire a luxurious lifestyle without breaking the bank.
Government grants and subsidies
Eligible first-time buyers can receive CPF Housing Grants of up to S$30,000, helping to further offset the purchase price.
Benefits of Investing in an EC
Choosing the right EC
When choosing an EC, it's important to consider factors like proximity to MRT stations, Primary Schools for Admission, shopping malls, and other amenities. Additionally, consider the potential for future developments and infrastructure improvements in the area. For instance, Bukit Batok EC is a popular choice due to its strategic location and connectivity.
Do some research on the developer's track record to ensure you are investing in a high-quality Singapore property. Look at their previous projects and read reviews from homeowners who have bought from them.
Unit size and layout
ECs come in various sizes and layouts, catering to different family sizes and preferences. Consider your current and future needs, as well as your budget when making a decision.
2023 EC projects to watch
Some upcoming EC projects in 2023 worth considering include:
Tengah Garden Walk EC
Tampines Street 62 EC
New launch condo projects in prime districts