Who, What, Why and How of buying an Executive Condo ?
Before buying an Executive Condo in Singapore, let us see what’s the concept, scheme etc and the criteria set out by HDB Singapore.
What is an Executive Condominium ?
The Executive Condominiums (ECs) housing scheme was launched in 1996. ECs are developed and sold by private developers, boasting facilities and designs comparable to private condominiums, with some restrictions imposed by HDB for a period of time. These restrictions will expire progressively within the first 10 years after Temporary Occupation Permit (TOP) or upon “taking the keys”. All ECs are classified in code 132 ‘Executive Condominium’ under the ‘Housing Units’ category.
In terms of legal status, design and facilities, an Executive Condomium is equivalent to a private condomium. An Executive Condominium is sold with strata title on a 99-year leasehold usually; and is comparable in design to private condominium. An Executive Condominium is also equipped with full condo facilities such as swimming pools, tennis court, clubhouse and gym.
Why was the Executive Condominium (EC) scheme introduced?
To cater to Singaporeans who aspire to own a private property, however, finding it tough to weather through the mortgage loan and can more than afford a HDB flat
Who is eligible to buy an Executive Condominium?
There are a number of criteria purchasers must meet, but first and foremost, applicants would need to be at least Singapore Citizens or Singapore Citizen + Singapore Permanent Resident combo. They must form a family nucleus, in line with those expected of Public Housing Scheme and their household incomes should not exceed S$12,000 per month.
What incentive is there to purchase an EC?
If both applicants are Singapore citizens they are eligible to receive a $30,000 housing grant. If the applicants are a Singapore citizen and a PR, they are eligible to receive $20,000.
What documentation do applicants need to bring with them to the Application process?
Generally, the documents required would be their NRICs, birth certificates, marriage certificates, and latest income statements- usually the latest 3 months of gross income/s. An E-apps is also usually filled up to ballot for preferred units selection prior preview launch by the developers.
What are the advantages of purchasing an EC ?
An Executive Condominium is much more similar to a private condominium, where there are facilities for owners to enjoy, which are usually restricted to residents’ usage. In addition, purchasers of EC are able to apply and use the Housing Grant for the purchase of the EC unit, if they are eligible and have not apply for it previously.
Can you rent out your EC?
You cannot rent out the EC during the minimum occupation period (MOP) of the first five years. You can, however, rent out rooms within the EC during this period.
What are the rules and regulations governing selling an EC ?
Owners would have to fulfil a MOP of 5 years, meaning the owners are not permitted to sell their unit before this period is fulfilled. After five years (kind of partially privatized in local jargon), owners can sell their units to Singapore Citizen and/or Singapore Permanent Resident, and after 10 years (fully privatized) they can sell to foreigners. Upon selling an EC you must wait 30 months before buying any flat direct from HDB.
