Many are familiar with private condominiums but less so with Executive Condominiums (EC). These hybrid public-private properties cater specifically to “sandwich class” residents not eligible to buy HDB BTO flats.
Private developers build these condominiums under government rules such as an income ceiling. After 10 years, these full pledge private residential condominiums become fully transferrable properties that can be bought and sold to Singaporeans, PRCs, and foreigners alike.
1. Lower Upfront Costs
ECs offer homeowners looking to upgrade from HDB flats an excellent value-for-money alternative, subsidized by the government and boasting amenities like swimming pools, gyms and BBQ pits – in addition to being eligible for CPF housing grants.
However, ECs tend to be located in more “ulu” estates which can make accessing public transport routes an arduous task for those without their own car.
Buyers of new launch condominiums in Singapore need to carefully consider both affordability and capital outlay when making any property purchase decision. It may be beneficial to consult a mortgage broker regarding loan eligibility; they can assist in breaking down costs associated with buying one and planning ahead financially.
Even with more affordable pricing, ECs typically provide more amenities than private condominiums – including swimming pools, BBQ pits, multi-purpose function rooms, playgrounds and well-maintained communal areas.
However, these aren’t enough to counter the drawbacks associated with ECs’ location – often further from public transportation nodes and hard to reach without owning a car.
Some upcoming new launch ECs are conveniently situated close to transport nodes; Parc Greenwich, for instance, is within walking distance from Sembawang MRT station and Sun Plaza Mall. Meanwhile, Parc Canberra sits within close proximity of Canberra MRT Station on the North-South Line as well as being within driving distance from Compass One and Hougang Malls.
3. Potential for Appreciation
Although many of these developments are still under construction, their proximity to shopping malls and other infrastructure will add value over time, giving investors the ability to reap the benefits of owning an executive condo in Lim Chu Kang Singapore.
Choa Chu Kang Singapore also offers more cost-effective executive condominium options through resale executive condos (ECs). Anyone, including foreigners, may purchase such units; they do however, follow a 5-year minimum occupancy period similar to HDBs, after which their prices could potentially increase further.
Copen Grand stands out among ECs by being situated within walking distance of three MRT stations, making it a highly attractive investment choice. Furthermore, its proximity to renowned schools such as Canberra Primary, Sembawang Primary and Wellington Primary makes it even more desirable.
4. Shorter Lease Period
If you are thinking of purchasing an Executive Condo (EC), make sure to view the HDB list of new launches or PropertyGuru for those hitting their five year anniversary.
ECs follow the rules of HDB for their first 10 years, including MOP requirements. After this period has lapsed, they become fully privatised and may be sold on the open market.
To be eligible to purchase an EC, one must be either a Singapore citizen or Permanent Resident and possess no ownership interest in any residential properties in Singapore; furthermore, no prior sales of private real estate must have taken place within 30 months; your monthly household income should not surpass $16,000 as this applies equally for both main applicants as co-applicants.
5. Restrictions on Resale and Subletting
Executive condos come with certain rules and restrictions that could dissuade people from investing in one. You cannot sublet it and must meet specific criteria in order to sell it – these barriers might deter some buyers from purchasing an executive property.
Purchase of an EC will involve an extensive process. Usually, this involves visiting the physical showroom of the developer to view various EC flat models and get an understanding of the space.
ECs are treated as HDB properties during their first 10 years, which means they comply with HDB financing and affordability rules as well as require a five year minimum occupation period before you can sell it – unlike private condos which fall under the Total Debt Servicing Ratio (TDSR) regulation.