An Executive Condominium or EC is a housing type introduced in Singapore in the 1990s. It was introduced to cater to the housing needs of the growing middle-income group in the country. Executive Condominiums are a hybrid of public and private housing. They are developed and sold by private developers but the ownership is similar to that of Public Housing. ECS is built under the Housing and Development Act, which sets out the eligibility criteria, rules, and regulations regarding their sale and purchase.
Executive condominiums (ECs) are a type of housing developed to meet the housing needs of Singaporeans who are unable to afford private housing but can afford to buy or finance an EC.
ECs different from HDB flats
ECs are developed and sold by private developers and are subject to different rules and regulations compared to HDB flats. For example, ECs can be sold to foreigners and are not subject to the Minimum Occupation Period (MOP) of 5 years.
Buy an EC
To buy an Bukit Batok West MRT EC, you must be a Singapore Citizen or Permanent Resident, and must not own any private property locally or overseas. You must also not have sold or disposed of any property within the last 30 months before the date of application.
EC cost
EC prices are typically 10-20% lower than comparable private condominiums. However, ECs are subject to the Additional Buyer’s Stamp Duty (ABSD) and Seller’s Stamp Duty (SSD), which private condominiums are not. Hence, the true price difference between ECs and Private Condominiums is only about 5-15%.
EC is different from a private condominium
ECs are developed and sold by private developers and are subject to different rules and regulations compared to private condominiums. For example, ECs can be sold to foreigners and are not subject to the Minimum Occupation Period (MOP) of 5 years.
Benefits of buying an EC
ECs offer many of the same benefits as private condominiums, such as a wide variety of unit types and layouts, full condo facilities, and proximity to amenities. However, ECs are typically 10-20% cheaper than comparable private condominiums. The main disadvantage of buying an EC is that you will be subject to the ABSD and SSD, which private condominiums are not. Additionally, ECs are only eligible for the Housing Development Board (HDB) housing loan, which has a lower loan quantum and higher interest rates than bank loans.
To apply for an EC, you must first submit an Expression of Interest (EOI) through the HDB website. If you are successful in the EOI draw, you will be invited to purchase a unit in the EC.
The minimum down payment for an EC is 10%, which can be paid in cash or CPF. ECS are subject to a 5-year MOP, after which they can be sold to any buyer, regardless of nationality.
Bottom line:
Different rules apply to ECs as compared to private condominiums. For example, ECs may only be sold to Singapore Citizens or Singapore Permanent Residents. In addition, ECs may only be sold to buyers who do not own any other property.
