Executive vs Private Condo: Which One is Better for You?
Updated: Oct 13
As the population continues to grow, the demand for housing in Singapore increases. Condominiums have become an increasingly popular choice for many Singaporeans due to their excellent facilities, prime location, and lifestyle benefits.
However, when it comes to choosing between an executive vs private condo, it can be challenging to decide which one is better for you. Both are great investments catered towards audience that best fit the product.
In this blog post, we will discuss the difference between the two and which one might be the better option for you.
Why Condos are Popular in Singapore
Condos are designed for residents who want to enjoy the benefits of a community lifestyle, such as access to various amenities and facilities such as swimming pools, gyms, and BBQ pits.
In Singapore, condos are becoming increasingly popular, especially among young professionals, families, and expatriates. Owning such properties makes you the top 20% of the population. With that, it's no wonder people are eyeing for such properties!
These days, the younger generation is looking for a more peaceful and relaxed environment for them to live in since more work is moving towards remote. This means that a condo is a highly desirable property for the younger generation to dream of owning.
The Difference between an Executive and a Private Condo
One of the main differences between an executive and a private condo is the eligibility criteria for purchasing them.
Executive condos; or EC are designed for middle-income individuals who are Singaporean citizens or permanent residents. These condos are built by private developers but are subsidized by the government to make them more affordable. There are certain eligibility criteria that need to be met before one can purchase an EC.
On the other hand, private condos have no restrictions on who can purchase them. Anyone can buy a private condo as long as they can afford it. Private condos are typically more expensive than EC due to their location and facilities.
Another significant difference between the two is the period of time before the condo can be sold to foreigners. EC can only be sold to Singaporean citizens or permanent residents for the first ten years, while private condos can be sold to foreigners immediately.
Pros and Cons of EC
ECs have their fair share of advantages and disadvantages. One of the main benefits of an EC is how affordable it is compared to a private condo. As mentioned earlier, EC are subsidized by the government, making them more affordable for middle-income individuals.
Another advantage of an EC is that it has facilities and amenities similar to a private condo. These facilities include swimming pools, gyms, BBQ pits, and function rooms. Additionally, EC are typically located near MRT stations, making commuting easier for residents.
However, one notable disadvantage of an EC is the eligibility criteria. As mentioned earlier, only Singaporean citizens and permanent residents are eligible to purchase EC. Additionally, there are certain income requirements that need to be met, and buyers are only allowed to own one subsidized property at a time.
Pros and Cons of Private Condos
Private condos, on the other hand, have their own set of advantages and disadvantages. One of the main benefits of a private condo is the flexibility it offers. Private condos have no restrictions on who can purchase them, and owners can sell them to anyone they choose. Additionally, private condos typically have a higher resale value than EC.
Another advantage of a private condo is the level of privacy it provides. Since private condos are not subsidized by the government, there are typically fewer units in the development, which means less crowding and more privacy for residents.
However, one of the main disadvantages of a private condo is the price. Private condos are typically more expensive than EC, and the cost of maintenance and facilities is higher as well. Additionally, private condos are usually located in prime areas, which means residents may have to pay higher taxes and utility bills.
Factors to Consider Before Buying a Condo
Yeah it's not as easy as it seems
When deciding between an EC and a private condo, there are several factors you need to consider. Firstly, you should consider your eligibility to purchase an EC. If you do not meet the eligibility criteria, then a private condo may be your only option.
Secondly, you should consider your budget. If you are on a tight budget, then an EC may be the better option for you. However, if you have the financial means, then a private condo may be a better investment in the long run.
Lastly, you should also consider the location of the condo. Both EC and private condos can be located in prime areas, but private condos are typically more expensive due to their location. If you prefer a more central location and are willing to pay a premium, then a private condo may be the better option for you.
Cost Comparison between EC and Private Condos
ECs are more affordable than private condos due to their government subsidy. The cost of a private condo can vary depending on its location, size, and facilities.
For example, a three-bedroom EC in Punggol may cost around 1.2 million. However, a three-bedroom private condo in a prime location such as Orchard Road may cost around $3 million.
It is essential to note that the cost of a condo is not just limited to the purchase price. There are additional costs such as maintenance fees, taxes, and utility bills that need to be taken into consideration.
Property Investment Potential of ECs & Private Condos
When it comes to property investment potential, both EC and private condos have their advantages and disadvantages. EC are typically less expensive than private condos, making them more accessible to first-time buyers.
Additionally, EC have a lower entry barrier, which means they have a higher potential for capital appreciation. Private condos, on the other hand, have a higher resale value due to their location and facilities. Private condos located in prime areas are always in demand, making them a viable investment option for those who can afford them.
Future Prospects of EC and Private Condos
The future prospects of EC and private condos are promising. With the government's continued efforts to provide affordable housing for middle-income individuals, EC will continue to be in demand. Additionally, the rise of new townships such as Punggol and Sengkang will provide opportunities for more EC to be built.
Private condos, on the other hand, will continue to be in demand due to their location and facilities. As more foreigners and expatriates move to Singapore, the demand for private condos will only increase. Additionally, the government's efforts to attract foreign investments will provide more opportunities for private condos to be built in prime locations.
EC vs. Private Condo?
The decision between an EC and a private condo ultimately depends on your eligibility, budget, and location preference. If you are a middle-income individual looking for an affordable option with similar facilities to a private condo, then an EC may be the better option for you.
When making your decision, it is essential to consider all factors and do your research to ensure you are making an informed decision. If you are interested to know more about the property market or want to work with somebody, be sure to reach out to me!