Singapore Condo & Apartment For Sale & Rent

SINGAPORE EC! ELIGIBILITY TO BUY EXECUTIVE CONDO

First of all, please reead this for The Eligibility to buy Executive Condo (EC) in Singapore. One of the Best choices for private housing scheme. Today, best long terms investment.

General Knowledge & History

Generally, Singapore EC or Executive Condominium is an innovative ideas of Singapore Government to create new form of residential property to fill the gaps. What does it mean?

FILLING NEED OF THE HIGHER INCOME CLASS.

In case, you planned to have your own home to be & you decided to have private home with facilities for your family. Definitely, HDB(Housing Development Board) home is not matched your plan. Hera might be be your useful guides.

Firstly is to evaluate your income. Secondly is to planned your progress of income. And then, you realised that with the full forecast of your income it is hard to catch up with the prices of private.

For this reason, the government’s innovative idea came in play! “Executive Condominium”, in short called “EC” is a form budget private housing with full condo facilities in existing HDB Land.

Qualification of Singapore EC Applicants

Firstly, its prime & convenience locations. And then also its affordable prices while comparing with private condo or apartment in the market. I am referring to the similar types of districts, locations & facilities. Being that most of them either in town near MRT station, shopping centres or amenities.

In today context, you will find that Singapore Executive Condominium (EC) offer a very competitive facilities to private condos. The actual fact, some EC Estate’s facilities are even better in term of variety. In contrast while comparing it with a small development with limited small site.

For the reason that EC have a vast good size of land, enable developers to create a good and abundance of facilities & landscaping. In term of price, EC land price is much lower than private condo or apartment at lest 20%. Therefore, Developers will be able to sell Singapore EC at lower price.

WHAT IS DIFFERENCES? (EXECUTIVE CONDO V.S. PRIVATE CONDO)

Singapore EC are residential developments built in HDB lands by private developers.

Obviously, Executive Condominium (EC) is building in existing HDB’s land. Generally speaking, these lands are acquired or they are assigned to HDB in the beginning stage of public housings in Singapore. Later, when public housing numbers has increased sufficiently due to the great success of Housing & Development Board (HDB). To illustrate further, HDB is one of Singapore Government Agency who look after need of public housings. After that HDB realised that there are some gaps in uncovered. Due to the fact that some higher incomer citizen might need some higher quality living than HDB. Thus their income are not enough to catch up with private condo prices in open market.

In order to prevent the market crashing to private condo which has higher land cost. And also to limit these offer to the particular income class, mentioned earlier, conditions were created.

Singapore Executive Condominium or EC are residential developments on HDB 99 Years Leasehold land. Developers are private Developers. Direct buyers must qualified by HDB, Executive Condominium Rules.

Emphatically, the Minimum Occupation Period (MOP) 5 Years from TOP date must be fulfilled. After 5 years, owners can resale to resale buyers (*must also qualified by HDB rules). Further more, after 10 years from TOP, the EC developments will be privatised. By then, owners can sell to any one in "open market" like one of the private condo.

GENERAL CONDITIONS TO 1ST BUYER

WHAT IS CONDITIONS FOR BUYING SINGAPORE EXECUTIVE CONDO (EC)?

Basically, to qualify for buying Singapore EC, buyer must complied with follow criteria. At least 1 Singapore Citizen (SC) and/or at least 1 another applicant must be Singapore Citizen (SC) or Singapore Permanent Resident (SPR). At the same time, applicants age must be 21 years  and above under family purchase. Otherwise, 35 years & above for Joint Single Buyers(2 persons not related as family) purchase. On the other hand, income combined ceiling, must not exceed $16,00 per annum. Moreover, all applicants must not owned private property within 30 months before the application date. In addition, any one of applicant not have bought more than 1 of these properties/ received 1 CPF Housing Grant. To illustrate, please refer to the listed in bullet form for easy understanding.

ELIGIBILITY TO BUY

Overview of eligibility conditions

Family nucleus - Essentially, buyers must be qualified for the Singapore EC under one of these eligibility schemes:

  1. Public Scheme
  2. Fiancé/Fiancée Scheme
  3. Orphans Scheme
  4. Joint Singles Scheme

Citizenship

  • Essentially, buyer must be a Singapore Citizen
  • At least 1 other applicant must be a Singapore Citizen or Singapore Permanent Resident
  • Most important that all singles must be Singapore Citizens if applying under the Joint Singles Scheme

Age for Singapore EC applicants

  • 21 years old and above
  • 35 years old and above, if applying under the Joint Singles Scheme

Income ceiling

  • Explicitly, buyers' household income must not exceed $16,000 income ceiling.

Property ownership

  • Moreover buyers do not own other property overseas or locally, or have not disposed of any within the last 30 months
  • In case, buyers have not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, have only bought 1 of these properties/ received 1 CPF Housing Grant thus far

PUBIC SCHEME

Certainly, buyer of Singapore EC must be with one of following to form of family nucleus. For instance:

  • with Spouse &/or Children (if any)
  • or with Parents &/or Siblings
  • or buy with own legal Custody-Care Children# (in case of widows& divorcees)

CONDITIONS FOR DUAL-KEY UNITS

For this purpose, buyer of Dual Keys unit in Singapore EC must apply under Multi-Generation family as following rules:

  • Married/engaged couple and parent(s)/grandparent(s)
  • Widowed/divorced with own legal Custody-Care Children# and parent(s)/ grandparent(s)

Remarks:
# If the care and control under age 21 is shared with ex-spouse must get written agreements for submission.

FIANCÉ/FIANCÉE SCHEME

Similarly, buyers with your spouse-to-be will be treated in a family nucleus manner.

Solemnisation of Marriage
According to this scheme, Buyer need to support documents as following:

  • Firstly, Solemnise of Marriage
  • And also, submit a photocopy of your marriage certificate to the developer within 3 months* of collecting your keys to the EC unit.

Remarks:
* will written in application & be specify in Option To Purchase (OTP)
Write consent is needed for spouse-to-be above 18 but below 21 years old. For this special Marriage, Licence from the Ministry of Social and Family Development and submit it to us during the EC selection appointment.

ORPHANS SCHEME

In conclusion, buyer of Singapore EC may apply with own siblings. In case of buyers are orphans and single, such as; unmarried, divorced, or widowed:

  • Above all, siblings that are single must be listed in the same application
  • equally important that, at least 1 of the deceased parents was a SC or SPR

JOINT SINGLES SCHEME

In addition, buyer and up to 3 other co-applicants can apply and must comply to this rules:

  • In this case, Single referring to unmarried, divorced, or widowed.
  • Singapore Citizens (SC)
  • Age 35 years old and above
  • Furthermore, applying jointly as co-applicants
  • In contrast, no CPF Housing Grant for singles when buying an EC.

DOES BUYER WHO STILL OWN HDB DBSS OR EC ELIGIBLE TO BUY?

In regard to, buyer who still own following can buy Singapore EC:

  • HDB house purchase directly from HDB
  • otherwise, HDB bought from resale market using CPF Housing Grant (only applies to first-timer applicants)
  • EC/DBSS house purchase directly from HDB

Overall, buyer who purchase above property twice already are not eligible to buy EC

Pros & Cons of Singapore EC

After all, there are advantages & disadvantages, buyers should notice before buying Executive Condominium in Singapore. This is to say “not one better than the other” but which is more suitable for you in the current situations. Therefore we put the said comparison between “Singapore EC” v.s. “Private Condo” as shown in the next topic.

PROSCONS
No ABSD for upgraders Available only in some districts
Deferred Payment available Minimum Occupation period of 5 Years
Full facilities due to large land Only can sell to foreign buyers after 10 years
Gain take longer term Higher number of units in the development
Lower maintenance fee Complication in forming family applicants
Housing Grant available (T&C)
Near MRT & essential amenities

Price & Features Comparison | Singapore EC - Private Condo

Comparison Basis

(On equal basis, we will start-off with some recent launch of Singapore EC. While comparing to the recent launches in the same district. In this case is D22-28 New Launch). For this purpose, price per square foot below taken from average 3 bedrooms units in launching at the same period (Jan 2021). In my oppinion, “StarBuy” units should not include in this test. 

Remarks:

^ referring to 1st & 2nd timer for HDB purchase.
* Additional Buyers’ Stamp Duty(ABSD) available for home upgrader
** Deferred Payment Scheme available in most new launch but not always

Highly Recommended

EXECUTIVE CONDOMINIUM (EC)

S$1,1xx
Price per square foot (approx.)

Features

  • Minimum Occupation Period 5 years (by Law)
  • Lower Entry Prices due to lower land cost
  • Higher historical gain
  • Full Facilities because of large land
  • Limited in some districts only
  • Only eligible for 1st & 2nd timers^
  • No Additional Buyer Stamp Duty*
  • Deferred Payment Schemes are likely available**
  • Mostly near MRT & assential amenities

Provence Residence
Recommended

PRIVATE CONDOMINIUM & Apartment

S$1,5xx
Price per square foot (approx.)

Features

  • Seller Stamp Duty 3 years
  • Higher Entry Prices
  • Lower gain but still profitable
  • Full condo facilities for only larger developments
  • Available in most districts
  • Eligible to all buyers
  • Additional Stamp Duty applied*
  • No more Deferred Payment Schemes available
  • Only some are near MRT & essential amenities
MIDWOOD (D23)
Recommended

PRIVATE CONDOMINIUM & Apartment

S$1,5xx
Price per square foot (approx.)

Features

  • Seller Stamp Duty 3 years
  • Higher Entry Prices
  • Lower gain but still profitable
  • Full condo facilities for only larger developments
  • Available in most districts
  • Eligible to all buyers
  • Additional Stamp Duty applied*
  • No more Deferred Payment Schemes available
  • Only some are near MRT & essential amenities
MIDWOOD (D23)

Historical evidences of Capital Gain in Singapore EC

Lastly, we want to present the historical transaction prices of Singapore EC in the last 10 years. Unquestionably, to date most EC buyers enjoy the good capital gain from price upside. Unfortunately, it is some sort of “once for the life time”. So decide wisely..

Singapore EC - 2021 -

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- 30 March 2021 -