Executive Condominium (EC) were introduced to cater to Singaporeans, especially young graduates and professionals who can afford more than an HDB flat but find private property to be out of their reach. Executive Condominiums are comparable in design and facilities to private condominiums as they are developed and sold by the private developers. Essentially, an Executive Condominium has most if not all the facilities of most condos and is 99-year leasehold.
An Executive Condominium is much more similar to a private condominium, where there are luxurious facilities for owners to enjoy. There’s greater upside for capital appreciation. In addition, purchasers of Executive Condominium are able to apply and use the Housing Grant for the purchase of the EC unit, if they are eligible and have not apply for it previously
Foreigners are not allowed to buy Executive Condominium directly from developers. Executive Condominium home owners can sell their executive condominiums in the resale market after 5 years to Singaporeans and Permanent Residents and 10 years to Foreigners.
Income ceiling set at $14,000 and MSR of 30% set by the government. As such, EC developers are mindful of the affordability of the buyers who are eligible to purchase an EC.
Lower land costs (compared to mass market land sites). Prices for EC sites seem rather unaffected by the upward spiral of other private residential sites and have risen by a smaller margin. Over the past 2 year, bids have largely been range-bound between $300 and $350 psf per plot ration on average, which translates to an average selling price of between $730 to $800 pst (compared to $950 to $1,200 pst for mass market condominiums).
EC lands are mostly bidder by construction firms who are also developer. As such, there is no double layer profit between a developer n the construction firm.
Given these restrictions, ECs are typically priced at a discount compared to nearby private condos. In recent months, the demand of new ECs has, however, reached new highs, with units oversubscribed at launch.
Budget-friendly entry price (Lower quantum compared to mass market condominiums.
Comparable, or better potential future capital appreciation to condominiums (more likely to be sold at a good profit after MOP).
Good starting opportunity to accumulate wealth for next property purchases
Can be sold under private property status after Minimum Occupation Period of 5 years to Singapore Citizens and Permanent Residents, and to Foreigners after 10 years.
Good potential rental yield as design and facilities are similar to any private condominiums.
Buyer can continue living in their current HDB flat (if currently holding) or continue leasing their HDB fllat (if fulfill MOP) while waiting for the Executive Condominium to complete.
Additional Buyer’s Stamp Duty (ABSD) is NOT applicable.
Seller’s Stamp Duty (SSD) is NOT applicable for EC as owners have to fulfil 5 years minimum occupation period (MOP).
Improved design and features. EC developers are now offering more to attract buyers wishing to upgrade to a ‘subsidized’ private residential lifestyle living.
Great lifestyle (Enjoy the same lifestyle and facilities as other condominiums).
Possible CPF Housing Grant of up to $30,000 for 1st Timers.
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