Are you looking for a home that offers the best of both worlds: the affordability of public housing and the amenities of private condominiums? If so, you might want to consider buying an executive condo (EC) in Singapore.
ECs are a hybrid type of housing that cater to middle-income Singaporeans who don’t qualify for an HDB flat due to the income ceiling cap but still find private condos out of their budget. Compared to private condos, ECs are more attractively priced and come with comparable facilities and designs.
But before you rush to book your dream EC, there are some things you need to know about this unique housing option. In this blog post, we will cover the following topics:
- What is the difference between executive condos and condos?
- Should you buy an EC or a condo in 2023?
- Executive condo eligibility
- Buying timeline with Progressive Payment Scheme (PPS)
- Am I eligible to buy an EC if I currently own an HDB flat?
- Conclusion
What is the difference between executive condos and condos?
The main difference between ECs and condos is that ECs are public housing for the first 10 years, while condos are private property from the start. This means that ECs have some restrictions and benefits that condos don’t have, such as:
| Factor | EC | Private Condo |
|---|---|---|
| Price | Cheaper due to government subsidy and lower land cost | More expensive due to market forces and higher land cost |
| Size | Larger units due to HDB guidelines on minimum floor area | Similar to private condos, but may have more innovative and luxurious features in newer projects |
| Facilities | Similar to private condo, but may have more innovative and luxurious features in newer projects | Similar to EC, but may have more options in prime districts or city fringe areas |
| Location | More likely to be in suburban areas or new towns, but still near MRT stations, bus interchanges, shopping malls, schools, and other amenities | More likely to be in prime districts or city fringe areas, but still near MRT stations, bus interchanges, shopping malls, schools, and other amenities |
| Appreciation | Higher potential for capital appreciation due to lower entry price and higher resale demand, plus CPF Housing Grant of up to $30,000 | Lower potential for capital appreciation due to higher entry price and lower resale demand |
| Eligibility | Must meet certain criteria such as being a Singapore citizen, having a household income of not more than $16,000 per month, and not owning any other property | No criteria except being able to afford it |
| Ownership Restrictions | Must occupy the unit for at least five years before selling it on the open market, and only to Singapore citizens or permanent residents | No restrictions on selling or renting the unit at any time, and to anyone |
Executive condo eligibility
To buy an EC in Singapore, you need to meet the following eligibility criteria:
- You must be a Singapore citizen
- You must form a family nucleus with another Singapore citizen or permanent resident
- You must be at least 21 years old
- Your household income must not exceed $16,000 per month
- You must not own or dispose of any private property within 30 months before the date of application
- You must not have bought more than one HDB flat, DBSS flat, or EC unit directly from the developers before
- You must not have received more than one CPF Housing Grant for buying an HDB flat, DBSS flat, or EC unit before
Reference: HDB | Eligibility
Am I Eligible to Buy an EC if I Currently Own an HDB Flat?
If you currently own an HDB flat and wish to buy an EC in 2023, you must meet the following conditions:
- You must have occupied your HDB flat for at least five years (the Minimum Occupation Period or MOP)
- You must dispose of your HDB flat within six months from the date of the TOP of your EC unit
- You must pay a resale levy of $55,000 to $80,000 depending on the type and subsidized status of your HDB flat
Alternatively, you can also buy an EC unit on the resale market after it has reached its MOP. In this case, you do not need to dispose of your HDB flat or pay a resale levy. However, you will not be eligible for the CPF Housing Grant.
Buying timeline with Progressive Payment Scheme (PPS)
If you are eligible and interested to buy an EC in 2023, you can follow this timeline and payment scheme:
- Booking: You can book an EC unit from the developer by paying a booking fee of 5% of the purchase price. You will also need to sign the Option to Purchase (OTP) and submit your application for the CPF Housing Grant (if applicable).
- Sales and Purchase Agreement (SPA): Within three weeks from the date of booking, you will receive the SPA from the developer. You will need to sign and return the SPA within three weeks from the date of receipt. You will also need to pay a downpayment of 15% of the purchase price (less the booking fee) within eight weeks from the date of booking. You can use your CPF savings or cash to pay the downpayment.
- Construction: During the construction period, which usually takes about three to four years, you will need to pay the remaining 80% of the purchase price in stages according to the PPS. The PPS is as follows:
| Stage | Percentage | Payment |
|---|---|---|
| Foundation work completed | 10% | CPF or bank loan |
| Reinforced concrete framework completed | 10% | CPF or bank loan |
| Partition walls completed | 5% | CPF or bank loan |
| Car park, roads, and drains serving the housing project completed | 5% | CPF or bank loan |
| Door sub-frames / door frames, window frames, electrical wiring, internal plastering and plumbing completed | 5% | CPF or bank loan |
| Car park, roads and drains serving the housing project completed | 5% | CPF or bank loan |
| Notice of Vacant Possession (TOP) issued | 25% | CPF or bank loan |
| Certificate of Statutory Completion (CSC) issued | 15% | CPF or bank loan |
Completion: Upon receiving the TOP, you can collect your keys and move into your new EC unit. You will also need to pay legal fees, stamp duties, and other miscellaneous fees.
Conclusion
An EC is a unique and attractive housing option for Singaporeans who want to enjoy both public housing affordability and a private property lifestyle. However, buying an EC also involves some trade-offs and considerations, such as eligibility criteria, ownership restrictions, and payment schemes.
Therefore, before you decide to buy an EC in 2023, you should do your homework and compare it with other housing options available in the market. You should also consult a professional property agent who can advise you on the best EC project that suits your needs and budget.
I hope that this blog post has given you some useful insights and tips on buying an EC in 2023. If you have any questions or interest in purchasing a property in Singapore, please feel free to contact me at +6597719040. Thank you for reading!
