Executive condominiums or ECs are hybrid public-private housing schemes designed to provide affordable access to private property for Singaporeans in Bugis Singapore who aspire to owning their own home but find it hard to do so. Constructed and sold by private developers, ECs resemble private condos in terms of design and facilities but come with 99 year leasehold contracts instead of lease agreements.

ECs not only offer affordability and condominium lifestyle, but also high appreciation potential. In this article we explore some of the advantages associated with owning an EC in Singapore.

Suitable For Middle-Income Singaporeans

Executive condominiums (EC) offer an alternative form of housing that is both public and private, catering to middle income Singaporeans. Offering amenities and lifestyle features similar to private property but at much more reasonable costs makes these condos popular among young professionals as well as families alike.

ECs are developed and sold by private developers, but operate under the HDB umbrella for 10 years prior to becoming semi-private after 5 years and can only be sold to Singaporeans and Permanent Residents.

To purchase an Executive Condo (EC), several eligibility criteria must be fulfilled, including household income and application scheme. DBS MyHome Planner can be used to estimate affordability and determine whether an EC is right for you. If this option doesn’t suit you, there are also resale ECs which can be purchased by anyone and enjoy similar advantages as HDB flats.

Affordable Housing

If you’re in search of an attractive apartment in the center of town but can’t afford its sky-high private property prices, ECs could be an affordable solution. These subsidized units provide housing for middle-income Singaporeans at much more reasonable rates than private condos – plus CPF grants may help cover their cost!

However, to purchase an Executive Condo (EC), certain criteria must be fulfilled. First and foremost is being either a Singaporean or Permanent Resident (PR). Next up must be paying at least 25% deposit when booking your unit with CPF; remaining payments may include cash and CPF contributions.

One disadvantage of executive condominiums (ECs) is their location: they’re often found in more isolated estates that may be far removed from business districts. Furthermore, there may be long walks from public transportation that make accessing your EC difficult without accessing your own car.

High Appreciation Potential

ECs are an affordable solution for middle income home buyers who find HDB flats too basic and private condos out of their price range, offering all the amenities of private condominiums at a subsidised price point.

But purchasing an EC can have its drawbacks. First of all, to qualify as a buyer you must be a Singapore citizen who meets certain income and family nucleus criteria and can pay the downpayment either with cash or CPF funds.

An additional drawback of ECs is their Minimum Occupancy Period (MOP), which lasts five years. Although less stringent than HDB resale flats, this restriction remains stricter than private condos that can be sold or rented out to anyone including foreigners. Still, ECs offer great investment potential with full privatisation in 10 years time.

Suitable For Investment

ECs offer all the luxuries of private condominium living at a much more cost-effective price, while also being ideal investments. After five years, they may be sold to Singapore Citizens (SC) or Permanent Residents (PR), then finally to foreigners after 10 years.

As ECs are subsidized by the government, their prices tend to be around 20% lower than condos and may qualify for CPF housing grants which further lower purchase prices.

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ECs offer middle-income families looking for amenities of private condominium living at an affordable price an attractive choice. Furthermore, an equity term loan enables them to unlock its value anytime after the MOP period has expired, giving them more options for buying second property in future. Before making any definitive decisions regarding either an EC or private property purchase it is vital that thorough research be conducted first.