Is Buying Or Upgrading To Executive Condominium (EC) In Singapore For Me?
“Buying an EC is like buying a Lexus at the price of a Corolla.”
ARE YOU THE PRIVILEGED ONES?
Here are the perks of upgrading and buying either a resale or new Executive Condo (EC) in Singapore:
Inexpensive way to enter the private housing market
Future high-potential wealth gain when you sell
Condo living at a reasonable cost
Create an SC-SC or SC-SPR family nucleus
Household income ceiling of up to $16k
First-time CPF housing grant recipients can take advantage of up to $30k in housing grants
Costs are typically 20-30% less than those of a private condominium
What makes you the privileged ones?
Since the 1990s, Executive Condominiums (ECs) have been a common housing option available in Singapore. New EC initiatives frequently have great demand when they are released to the market. As they are far less expensive than private condominiums, their affordability is a major factor in the high demand.
As a public-private housing hybrid, ECs - which the government heavily subsidises – caters to the needs and aspirations of the ‘sandwiched class’, whose earnings exceed the income ceiling for HDB flats but may feel financially stretched to purchase private property.
Since the 1990s, Executive Condominiums (ECs) have been a common housing option available in Singapore. New EC initiatives frequently have great demand when they are released to the market. As they are far less expensive than private condominiums, their affordability is a major factor in the high demand.
Therefore, ECs are a popular choice for those looking to upgrade from their existing HDB.
Executive Condos (ECs) are good bargains, but there are conditions associated with them. To begin with, not everyone is eligible to buy an EC unit from the developers, regardless if it is resale or new. To learn more about these eligibility conditions and to determine whether you qualify for buying an EC, please contact us.
In addition, the EC owner needs to complete the 5-year Minimum Occupation Period (MOP), during which the owner is not permitted to lease or sell the unit. If you do intend to sell your EC unit, you can only make the property available to Singaporeans. You will have the opportunity to sell the flat to foreigners when the property is completely private after 10 years.
Despite these regulations, qualified buyers can still purchase Executive Condos (ECs), as the rules have limited impact on the EC market.
Why Fahmy & Aida Took Action
Watch Fahmy and Aida candidly share their aspirations of owning a condominium and the worries that come with it. Fully embracing the courage to change, this leap of faith is not a blind one. With proper planning and some number crunching, they were able to buy their coveted condominium unit comfortably.
Are You The Privileged Ones?
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Why Others Took Action and Are Now Sitting On A Pot Of Gold?
Take a look at the charts below to see why many people are starting to upgrade from their existing HDB to an Executive Condo (EC).
Likewise, find out what makes EC a profitable investment and what you can seek to gain when you decide to sell your house in the future:
Frequently Asked Questions
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To upgrade from HDB to EC, you must meet the eligibility criteria and minimum occupation period for your HDB.
Following this, you can proceed to find a suitable resale EC and then arrange for a valuation of your current HDB and ensure sufficient funds for the downpayment associated with the EC purchase. Submit a resale application to HDB and obtain any necessary approvals once a buyer is secured for your HDB flat.
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As an experienced housing agent in Singapore, we recommend considering your financial stability and long-term goals before looking to upgrade from HDB to EC. This ensures that you have sufficient savings to afford the associated costs.
You should also evaluate your housing needs and family size, as an EC typically offers larger living spaces, and observe the property market and interest rates to gauge favourable conditions for upgrading.
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The main difference between an EC and a condo lies in their eligibility criteria, ownership restrictions, and initial pricing. ECs are available exclusively to Singaporean citizens and have a minimum occupation period, and are sold at a more affordable price compared to condos.
On the other hand, condos can be purchased by anyone and tend to offer more flexibility and have a wider range of amenities.
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As of 2023, the minimum downpayment for an EC in Singapore is 25% of the purchase price. If an EC unit costs $1.2 million, the downpayment required would be $300,000.
Since buyers are not allowed to apply for an HDB loan to buy their EC, it is advised to seek the help of a housing agent in Singapore like NeezaNizam to handle any complex financial and legal procedures.
Get in touch.
Take a look at the charts below to see why many people are starting to upgrade from their existing HDB to an Executive Condo (EC).
Likewise, find out what makes EC a profitable investment and what you can seek to gain when you decide to sell your house in the future:
NeezaNizamSGRealEsateDuo - It’s all about you!!