» What is Executive Condominium (EC)?
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