Executive condominiums (EC) provide middle-income Singaporeans an entryway into home ownership. Constructed by private developers but sold as HDB flats, ECs remain subject to certain HDB renting and selling restrictions until reaching their 10th year, when they become fully privatized.
1. Location
As a hybrid form of property ownership, Executive Condos (ECs) represent public housing sold privately to individual buyers. Although ECs offer many amenities common to condos – swimming pools and gyms for example – their prices tend to be much lower and usually come on shorter lease terms compared to private condominiums. Furthermore, eligibility usually requires meeting specific income and property ownership criteria.
As such, they offer an ideal solution for people who cannot afford a private condo but still wish for the benefits associated with ownership. Hougang offers many such properties throughout its various neighbourhoods – such as Defu Industrial Park or Hougang Central – making ECs popular among both young professionals and families.
2. Amenities
Living in a landed property provides many advantages, from increased space, privacy and security to access to top-tier amenities such as gyms, outdoor areas and tennis courts.
Landed properties tend to be more costly than ECs and can be harder to sell if you decide to relocate.
As such, ECs have become an increasingly attractive option for homeowners whose income falls between the household income cap for HDB flats and that required for private condominiums. This category encompasses individuals whose earnings surpass the household income cap but do not reach threshold threshold.
As opposed to private condos, which may be purchased directly or through leasehold agreements, ECs are typically sold using the Normal Payment Scheme (NPS). You must make instalments payments whenever a milestone is met such as after foundation completion and reinforced concrete framework installation – for instance 10% after foundation and 10% once reinforced concrete framework assembly have taken place respectively. Alternatively you may defer payments and begin them only once construction is finished.
3. Value for money
Private condominiums can make for excellent long-term investments due to their exclusivity, superior design and well-known developer. Meanwhile, ECs provide similar features at more competitive prices.
Additionally, Executive Condos (ECs) tend to be located outside of Singapore’s central region and come equipped with attractive CPF housing grants that make owning an EC easier with minimal cash outlays. Furthermore, an average income ceiling of $16,000 allows first-time homebuyers to purchase them easily.
So it should come as no surprise that Executive Condos (ECs) have become popular among HDB upgraders who are nearing the maximum purchase price (MOP) of their BTO flats. Furthermore, purchasing an EC also makes great financial sense as it can fetch higher rental prices on the open market than comparable HDB apartments; additionally, purchasing an EC allows greater mortgage options as you qualify for both HDB and private bank loans allowing more freedom in choosing which type to take out.
4. Flexibility
ECs are an affordable combination of public housing and private condominiums, offering some of the amenities found in condos while maintaining more cost-effective pricing. Furthermore, construction of these hybrid projects typically takes three years on average and first time EC buyers can qualify for CPF Housing Grant.
Before selling or renting out an EC, its Minimum Occupation Period (MOP), beginning from when you receive a Temporary Occupancy Permit (TOP), must pass. In contrast, BTO condos can usually be sold shortly after completion.
Although restrictions exist when it comes to selling or renting out an EC, they remain an excellent investment for those looking for property investments. Most ECs appreciate in value once fully privatised after 10 years and are an affordable way to own home without incurring high mortgage payments. This makes ECs ideal for people looking for housing but cannot afford private condos.