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.”
What are Executive Condominiums?
Executive Condominiums (ECs) are a unique housing option in Singapore, designed to bridge the gap between public and private housing. These properties offer the best of both worlds, combining the affordability of HDB flats with the luxury and amenities typically associated with private condominiums.
When you upgrade from HDB to EC, you gain access to enhanced facilities like swimming pools, gyms, and gated security, making it an ideal choice for families looking to elevate their living experience. Unlike HDB flats, buying an Executive Condominium gives you the opportunity to own a home that can increase in value over time.
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.
Advantages of Buying an EC
There are numerous advantages to buying an Executive Condominium, especially for those looking to upgrade from HDB to EC. Firstly, ECs are more affordable compared to private condominiums due to government subsidies, making them an attractive option for families looking to own a luxury property without breaking the bank. Additionally, ECs offer a higher potential for capital appreciation, particularly after the 10-year mark when they become fully privatised. This means that your investment not only provides a comfortable and luxurious living environment but also the possibility of significant financial returns in the future. Moreover, buying an Executive Condominium allows you to enjoy the lifestyle and amenities of a private condo, such as swimming pools, gyms, and 24/7 security, while still benefiting from a government-backed housing scheme.
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.
Available Executive Condos in Singapore
Parc Central Residences - Click To Find Out More
Provence Residence - Click To Find Out More
OLA - Click To Find Out More
Piermont Grand - Click To Find Out More
Parc Canberra - Click To Find Out More
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:
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