Executive Condominiums or more commonly known in Singapore as EC, is a hybrid class of housing between private and public housing.
There are income, age and citizenship restriction just like our public housing (HDB).
However, Executive Condominiums are provided with facilities, such as club houses, swimming pools and gyms.
So why should you consider buying an EC?
Cheaper than private condominiums
Private developers build and manage ECs.
But the Government has subsidised the land cost and, thus it comes at a more affordable price. ECs are generally 20% -30 % cheaper than the prices of private condominiums in the area.
First-time applicants who are Singapore citizens and applying as a couple can get up to $30,000 worth of CPF housing grants. You can visit the HDB website for more details.
Will enjoy private condo status
EC buyers are subjected to a minimum occupation period of 5 years, and are allowed to sell their ECs after 5 years. At this time, other Singapore Citizens or Singapore Permanent Residents can buy them.
After 10 years, the ECs will gain private condominium status. This means that they can sell it to foreigners and companies. This will open up an extra pool of buyers after the 10th year mark.
Home for the sandwich class
Executive condominiums are meant for the sandwich class income-earners and HDB upgraders.
The location of various ECs are usually located outside the central core area. You will have to consider very carefully whether this home is right for you.
While there is a lot of upside to buying an EC, a good financial analysis of your accounts and prudence is required. You can use my affordability calculator to help guide you. It is recommended to get advice from a professional then make the decision based on your own discretion.