Executive Condos are a hybrid of public and private housing and have grown popular in recent years. The scheme was introduced in 1996 when private home prices were at their peak, to cater to the needs of the "sandwiched class". This group of buyers cannot afford private properties, and also do not qualify for BTO flats, as their incomes have exceeded the previous $8,000 income ceiling. This income ceiling has then been revised to$14,000 - allowing more upgraders to buy Executive Condos of their dreams. With private property prices going beyond $1,200 psf mark, Executive condos have a stronger appeal amongst upgraders and young couples. 

Like any other condos, Executive Condos are designed and built by private developers - but come with restrictions. Executive Condo buyers have to form a family nucleus comprising at least 2 Singapore citizens (SC), or 1 SC and 1 Permanent Resident (SPR). A minimum occupation period (MOP) of 5 years is applicable before it can be sold in the open market. Executive Condos can only be sold to foreigners after 10 years.

Due to avid demand for Executive Condos, HDB has introduced 3 measures on 9 Dec 2013, they are:

• 30% Mortgage Servicing Ratio (MSR) Cap
  

          A buyer can only use a maximum of 30% of his / her monthly gross income to serve the EC loan.

• Resale Levy for Second-Timer Applicants
  

         All second-timer applicants who buy Executive Condo directly from a developer will have to pay a resale levy depending on the 
         type of flat previously owned (Note: This is only applicable tyo Executive Condo projects whereby the land site were purchasedon
         or after 9 Dec 2013). 

• Reduced Executive Condo Cancellation Fees
  

          Cancellation fees for Executive Condos has been reduced from 20% to 5% of the purchase price.

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Why are Executive Condos popular among buyers?

1. No Additional Buyer's Stamp Duty (ABSD)
   
2. No Seller's Stamp Duty as Executive Condo owners need to fulfill 5 years Minimum Occupation Period (MOP) before selling
3. Deferred Payment is available. 20% down payment, 65% upon TOP and final 15% upon legal completion
4. No restriction to invest in commercial / industrial property as long as there is no residual accommodation component in the commercial unit
5. Condo design & features similar to surrounding condo quality and facilities
6. Improved lifestyle - enjoy the same lifestyle and facilities as other condominiums
7. Possible Grant - CPF Housing Grant of $20,000 / $30,000 for 1st timers
8. Budget-friendly entry price (Lower psf pricing and quantum price compared to mass market condos nearby)
9. Enjoy better potential capital appreciation to condos as the Executive Condos are bought at around 20% to 30% lower than the surrounding condo prices
10. Can be sold under private property status after Minimum Occupation Period (MOP) of 5 years to Singapore Citizens & SPRs and to foreigners after 10 years.

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