What is Executive Condominium (EC)?

What is an Executive Condominium (EC)?

Executive Condominium is hybrid between a private property and a HDB flat.

  • Comes with restrictions
    • Only Singapore Citizens are eligible to buy new ECs
    • Foreigners are not allowed to buy ECs directly from developers
    • household income of not more than $12,000
    • Lower land costs as usually bidded by construction firms who are also developers hence no double layer profit
    • Minimum Occupation Period (MOP) of 5 years.
    • During the 6th to 10th year after completion, units can be sold to Singaporean and PR with no nucleus requirements (Partially privatized).
    • After 10 years, all restrictions are lifted (Privatized). Buyers are eligible to certain grants.
  • New ECs are sold at about 20 to 30% discount compared to nearby new private properties
    • Construction cost tend to be 20% lower than private property
    • Discount starts to narrow down once units are allowed to be sold after 5 year MOP
    • After 10 years, it will be priced like private properties
  • Ideal for genuine owner-occupier who prepare to stay for at least 5 years
  • Example of EC comparison against private property (base on Straits Time article dated 4 Aug 2012):
    • EC Bishan Loft & Rafflesia narrowed to 7% in June
    • EC Simei Green & Eastpoint Green shrank to 6%

 

3 New Measures on 9 December 2013:

1) 30% Mortgage Servicing Ratio (MSR) cap

2) Resale Levy for Second Timer Applicants (Applicable to EC projects whereby land sites were purchased on or after 9 December 2013)

3) Reduced EC Cancellation Fees (From 20% to 5% of the purchase price)

 

Why are Executive Condominium popular?

  • Additional Buyer’s Stamp Duty (ABSD) is not applicable
  • Seller’s Stamp Duty (SSD) is not applicable for EC owners as they have to fulfill 5 years minimum occupation period (MOP)
  • Deferred payment scheme available
  • No restriction to invest in commercial/industrial property as long as there is no residential accommodation component in the commercial unit
  • Improved design and features of ECs
  • Great Lifestyle (Similar to Condos)
  • Possible Grant for first timers
  • Budget-friendly entry price (Compared to mass market condo pricing)
  • Comparable or better potential future capital appreciation to condo (More likely to be sold at a good profit after MOP)
  • Can be sold under private property status after MOP of 5 years to Singapore Citizen/PRs and to foreigners after 10 years
  • Good potential rental yield

 

Eligibility to Buy Executive Condominiums

Using CPF Housing Grant for Executive Condominiums

 

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