What is an Executive Condominium or
Executive Condo (EC)?
Executive Condominium or Executive Condo (EC) were introduced in 1994 as a hybrid of public and private housing catered for middle-income Singaporeans who don’t qualify for an HDB flat due to the income ceiling cap, but find private homes to be out of their reach.
Executive Condominium (EC) developments are designed and built by private developers. Therefore, buyers can expect ECs to come with a great floor plan layouts, quality finishings and facilities like swimming pools, gyms, tennis courts, clubhouses, as good as those offered by the private condos.
The government will sell the land (reserved for EC sites) to private developers at subsidised prices. Therefore, the price for New EC is generally lower than a private condominium. Which means EC buyers will be able to enjoy a much lower purchase price for high-quality EC. Additionally, buyers can take Central Provident Fund (CPF) grants to pay for a New EC bought from a developer. As former National Development Minister Khaw Boon Wan puts it, "It's like buying a Lexus at the price of a Corolla.
As such, a New EC is subject to certain regulations that apply to Housing and Development Board (HDB) flats. Buyers' monthly household income must not exceed $16,000, in order to qualify for a New EC. For direct purchases of New EC from a developer, there is a minimum occupancy period of five years; during which the EC cannot be sold or rented out as whole unit.
After five years, the ECs are semi-privatised and can be sold under private condo status to Singaporeans or Singapore Permanent Residents (SPR). However, once ECs hit their 11th year, they will be fully-privatised and can be sold to foreigners or corporate entities.
Eastvale being the first EC launched in 1996 and obtained TOP in Jan 1999, since then more than 60 over ECs were launched till date. Some had semi-privatised or fully-privatised and had achieved very good profit margin in the resale EC market.
Buying an Executive Condo become a no-brainer for those who qualify! If you are the one, you should capitalise on this opportunity to own an EC for a whole new lifestyle.
Read more about EC Eligibility, EC Housing Grants, Resale Levy and EC Restrictions.
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