Singapore’s real estate market offers a variety of housing options, but Executive Condominiums (ECs) stand out as an excellent choice for upgraders and young families. Executive Condominium (EC) were introduced to cater to Singaporeans, especially young graduates and professionals who can afford more than 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.
ECs combine the luxury of private condominiums with the affordability of public housing, making them a highly sought-after property type.
Executive Condominiums (ECs) offer the best of both worlds—combining the luxury and amenities of private condominiums with greater affordability and investment potential. An Executive Condominium is much similar to a private condominium, where there are luxurious facilities for families to enjoy. There’s is also a huge price disparity compared to private condo. 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 $16,000 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. The average land rate for ECs has risen from $341 per square foot per plot ratio (psf ppr) in 2013 to a high of $721 psf ppr in recent years. This trend is further reflected in the average launch prices of new ECs, which have been climbing, reaching around $1,500 psf.
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. The supply for ECs sites and available are also limited.
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 Minimum Occupation Period (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 flat (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 fulfill 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.
For HDB upgraders and young couples, an EC is a strategic step towards private property ownership without the high upfront cost.
Interested in buying an EC? Contact us today for the best deals and expert advice!
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