The demand for private housing, especially Executive Condominiums (ECs), has increased steadily, partly because of the current low-interest rate climate and rising income growth in Singapore.
Although more new ECs have been launched in recent years to cater to the demand, the supply of executive condos in 2018 and 2019 are extremely low with only one project to be launched in 2018 called Rivercove Residences EC in Seng Kang area and only one EC project to be launched in 2019 in Punggol area.
Although more new ECs have been launched in recent years to cater to the demand, the supply of executive condos in 2018 and 2019 are extremely low with only one project to be launched in 2018 called Rivercove Residences EC in Seng Kang area and only one EC project to be launched in 2019 in Punggol area.
Parc Life Executive Condo (click to visit project website)
First introduced by the Government in 1999, ECs are a hybrid type of housing, that fall between public and private housing. ECs resemble private condominiums with its guarded security, swimming pools, clubhouses, playgrounds and more. They are built and managed by private developers but come at a cheaper price, as the land cost is subsidized by the government. Typically, ECs are located away from the city centre and MRT stations where land is more affordable.
The greatest draw of ECs is surely the fact that while they start out as HDB property, in 10 years' time they will be officially recognised as private property.
The greatest draw of ECs is surely the fact that while they start out as HDB property, in 10 years' time they will be officially recognised as private property.
Rivercove Residences Executive Condo (click to visit project website)
First-time applicants who are Singapore citizens and applying as a couple can get between $10,000 to $30,000 worth of CPF Housing Grants if their combined incomes are $12,000 and below. The income ceiling for new HDB flats is currently $12,000, while the income ceiling for ECs is $14,000.
For applicants whose combined household income is $12,001 or $13,999, the only ways you can get your hands on a new home are to purchase an EC or buy a unit in a private development which is much more expensive, therefore making ECs look attractive in comparison, since both ECs and condos all have condo facilities.
For applicants whose combined household income is $12,001 or $13,999, the only ways you can get your hands on a new home are to purchase an EC or buy a unit in a private development which is much more expensive, therefore making ECs look attractive in comparison, since both ECs and condos all have condo facilities.
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A hybrid between public and private housing, ECs cater to the needs of the “sandwich” class — those whose household incomes exceed the ceiling for public housing but are not quite yet able to afford a private property. As such, ECs come with a set of eligibility criteria to ensure affordability for this select group.
As with public housing, EC applicants must either form a family nucleus or join up with other singles if they are at least 35 years old. They must also not exceed the household income ceiling of S$14,000. Only Singaporean couples and Singaporean/permanent resident couples can buy an EC unit. Also, buyers have to fulfil a mandatory five-year minimum occupation period (MOP) before they are can rent out or sell the EC unit. Despite these restrictions, ECs come with a full suite of condominium facilities and are generally comparable to private developments in design.
As with public housing, EC applicants must either form a family nucleus or join up with other singles if they are at least 35 years old. They must also not exceed the household income ceiling of S$14,000. Only Singaporean couples and Singaporean/permanent resident couples can buy an EC unit. Also, buyers have to fulfil a mandatory five-year minimum occupation period (MOP) before they are can rent out or sell the EC unit. Despite these restrictions, ECs come with a full suite of condominium facilities and are generally comparable to private developments in design.
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