Are you looking to buy Executive
Condos (ECs)?
Know your eligibility to buy ECs
Work out your finances and housing grants
Understand the buy and sell timeline for your flat
Plan your retirement well with ECs
What is an Executive Condo (EC)?
executive condo in
Singapore
An executive condo in Singapore (EC) is a unique type of housing that merges the benefits of public and private housing. It is specially meant for Singaporean families who exceed the income limit for HDB flats but cannot afford private condos.
Executive condos for Singaprean only
Ecs are a privilege reserved for Singaporean buyers and their families only, with CPF housing grants of up to S$30,000 for eligible buyers.
EC = "Buying a lexus for price of Corolla"
NMD ex-minister Mr Khaw Boon Wan said in Parliament on the benefits of buying a Ec for Singaprean and liken it to the above statement [watch the video for full speech]
Key Features
- Affordability: ECs are subsidized by the government, making them cheaper than private condos.
- Eligibility: Specific executive condo eligibility criteria must be met such as income ceilings and citizenship.
- Privatization: After 10 years, an EC becomes fully privatized, allowing sales to foreigners.
- Amenities: ECs offer luxurious facilities similar to private condos including swimming pool, gyms and tennis courts.
Pros of ECs
- Cost-Effective: Significantly cheaper than private condos due to government subsidies.
- Housing Grants: First-time buyers can benefit from CPF Housing Grants, reducing the overall cost.
- Value Appreciation: ECs tend to appreciate in value, especially after privatization.
- Ideal for Middle-Income Families: Designed for those who do not qualify for HDB flats but find private condos too expensive.
Cons of ECs
- Initial Restrictions: Bound by HDB rules and regulations for the first 10 years.
- Location: Typically located in suburban areas, which might be less convenient for some buyers.
- Financing: Must be financed through bank loans, as HDB loans are not applicable.
Buying Process
- Check Eligibility: Ensure you meet the executive condo eligibility criteria, including income and citizenship requirements.
- Financial Planning: Obtain an In-Principle Approval (IPA) from a bank to understand loan amount.
- Application: Submit your application and necessary documents to the EC developer.
- Booking: Attend the booking appointment to select and secure your preferred unit.
- Legal and Financial Procedures: Hire a conveyancing lawyer, finalize your loan, and complete all legal documentation.
- Completion and Payment: Choose between the Progressive Payment Scheme (PPS) or Deferred Payment Scheme (DPS) for managing payments.
Why Executive Condos are the Top Choice
for Homebuyers in Singapore?
After knowing what are EC, are you considering owning an executive condo in Singapore? Discover the numerous benefits of choosing a Singapore executive condo!
Top 10 reasons why you should consider
Executive Condominium
1) Exclusively for Singaporeans
Singapore executive condos are a special privilege for Singaporeans, offering a unique blend of public and private housing benefits.
This exclusive eligibility ensures that Singaporeans enjoy the best of both worlds.
2) Affordable Luxury Condos
Ecs are properties are subsidized by the government, making them 20-30% cheaper than private condos.
After a 5-year Minimum Occupation Period (MOP), ECs become semi-privatized, allowing sales to Singaporeans and Permanent Residents. They fully privatize after 10 years, becoming available to foreigners.
3) CPF Housing Grants for Buyers
First-time buyers with a household income below $10,000 can receive up to $30,000 in Family Grants.
Additionally, there is a 70% allocation quota to ensure first-time families have a higher chance of securing an executive condo in Singapore.
4) Extended Loan Tenure
Unlike HDB flats, which have a maximum loan tenure of 25 years, EC offer loan tenures of up to 30 years, similar to private properties.
This extended tenure provides more flexibility in purchasing larger units.
5) No ABSD and Retention of HDB flat
Buyers do not need to pay up to 60% Additional Buyer Stamp Duty (ABSD) and can retain their current HDB flat until their new executive condo is completed.
Buyers will need to sell their HDB flat within six months of receiving their EC keys.
6) Flexible Payment Schemes
New executive condos in Singapore offer Normal Progressive Payment Schemes and Deferred Payment Schemes.
The Deferred Payment Scheme allows mortgage payments to start only upon project completion (TOP).
Bridging Loan options are also available for HDB flat owners.
7) Larger Units at Lower Prices
Ecs offer spacious units, including up to 5-bedroom layouts, making them ideal for large families. Thus, renting out a room can help with monthly repayments.
8) Luxury Condominium Lifestyle
Buying new EC come with facilities like playgrounds, function rooms, BBQ pits, swimming pools and smart home systems.
Maintenance fees for ECs are often lower than those for private condos.
9) Home Equity Loan Options
After the 5-year MOP, executive condo owners can take out home equity loans, providing emergency funds or additional financial flexibility.
10) Move-In Ready Homes
Ecs are partially furnished, featuring flooring tiles, built-in wardrobes, quality bathroom fittings and smart home systems, saving you renovation costs.
Contact Us for full list of executive condos today!
With rising land and construction costs, new EC prices are always increasing.
Secure your preferred unit now before it’s gone!
For more information and to start your journey towards owning an executive condominium in Singapore, contact us now!!
Profitability of ECs
Profitability of Resale ECs
- Average Profit: In May 2023, ECs resold made an average profit of S$470,000. The highest gain was S$995,000 for a unit in Park Green, bought for S$565,245 in 2002 and sold for S$1.56 million in 2023.
- Significant Gains: Over the past 15 years, nearly all ECs resold made a profit, with 294 units earning at least S$500,000 each. CityLife@Tampines saw a unit bought for S$1.91 million in 2013 resell for S$3.29 million in 2021, a S$1.38 million profit.
- A majority of the sampled 4,806 EC units were resold within 10 years from the purchase date and netted around $314,000 in gross profits each. In 2021, a resale EC unit at CityLife@Tampines snagged a record gross profit of $1.38 million, followed by another unit at The Quintet in Choa Chu Kang, which scored $1.02 million in profit.
- Bigger EC units tend to fetch higher profits. The study found that 3,055 units (ranging between 800 sq ft and less than 1,200 sq ft) yielded an average gross profit of $286,621 each, while 1,250 units (between 1,200 sq ft and less than 1,600 sq ft) yielded $384,962 each. [OrangeTee’s study based on 4,806 caveats mined from 28,009 new EC transactions between 2007 and 2023.]
Long-Term Value Appreciation
- La Casa: Starting at $383 psf in early sales, prices rose to $713 psf by 2020. The average unit price increased from $424,000 to $829,000, a 95.3% increase.
- The Quintet: Prices increased from $370 psf to $730 psf over the same period. The average unit price doubled from $504,000 to $1.06 million, a 112% increase.
- The Esparis: Prices rose from $401 psf in 2005 to $758 psf in 2020. The average unit price went from $475,000 to $995,700, a close to 110% increase.
Increasing Popularity
- Price Growth: From 1999 to 2020, EC prices rose from about $400 psf to approximately $1,100 psf, representing a 175% increase.
- Recent Trends: EC projects like Piermont Grand have seen average prices crossing the $1,000 psf mark, indicating strong demand and consistent value appreciation.
Conclusion
Executive condominiums in Singapore offer an unmatched combination of luxury, affordability and investment potential, making them an ideal choice for discerning homebuyers.
With substantial historical profit margins and long-term value appreciation, ECs are a smart investment for those looking to upgrade their living standards without breaking the bank.
So why don’t you also consider one too?
Contact Us
Ready to explore your options?
Contact us today for a free consultation and take the first step towards owning your dream executive condo in Singapore.