If you’re considering upgrading from HDB to a private condominium but don’t want to pay the full price for a private condo, you may be interested in ECs. These hybrid public-private condos are subsidized by the government and are a good choice for those who are on a tight budget.
ECs are a hybrid of public housing and private condominiums
Executive condominiums, or ECs, are private units that are partially subsidized by the government. The ECs are typically smaller than private condominiums, and come with more rules and regulations. They are often located in suburban areas far from MRT stations and business centres.
Executive condos (ECs) in Singapore offer many of the same amenities as private condominiums, but are generally cheaper. This makes them a good option for young Singaporeans who want to own their own private property but do not want to pay the high price. Although the price of these units has risen in recent years, they remain a popular option for many buyers.
They are subsidized by the government
The cost of ECs in Singapore is a bit lower than private condos, but they still come with all the typical amenities of a private condo, including fully equipped kitchens and comparable finishings. Aside from that, ECs are eligible for CPF Housing Grants, making them attractive to foreign buyers. Moreover, you can sell your unit after 11 years on the resale market.
ECs are hybrid properties that feature both the benefits and features of a private condo, but are regulated by the government. The government in Singapore subsidizes the cost of EC development, so that they are more affordable for Singaporeans. The government also sets a specific income ceiling for ECs, so they are a good choice for people who can’t afford private condos.
They are more affordable than private condos
The prices of ECs in Singapore are lower than the price of private condos. This is mainly due to the fact that ECs are built on cheaper land and in areas outside the city. As such, residents are not close to MRT stations, and are far from city amenities.
In addition, ECs are open to foreign buyers. In contrast, private condos cannot be sold to foreigners until 11 years after purchase. These factors make ECs a good investment vehicle for Singaporeans and PRs.
They are a good option for HDB upgraders
If you are looking to upgrade your HDB flat, ECs are a good option. These schemes allow you to pay for your new flat over a period of time. You can choose to make a cash deposit of 5% or 15% at the time of purchase. You will also have to pay stamp duty on your new property within two weeks after completion of the purchase agreement.
ECs are generally cheaper than HDB condos. Buying HDB units requires you to take a bank loan to pay for the property, but ECs do not have a HDB loan. For example, in December 2016, the average price of a HDB condo island-wide was $1.63 million compared to $1.066 million for ECs, a 34.6 per cent difference.
They are located in suburban areas
As Singapore’s population is increasing, more people are looking for affordable and larger homes in the suburbs, which are far less expensive than town centres. Because of the scarcity of land, executive condos are typically built in outlying areas far from the town centres, which helps keep their prices affordable.
In terms of affordability, ECs are cheaper than private condos. The average monthly rental yield for an EC is comparable to that of a private condominium across Singapore. The difference in price per square foot (PSF) is approximately $0.50, meaning a monthly rent of about $500 will pay for itself in a year or more.
They are not eligible for HDB loans
An EC in Singapore is an apartment that is not a full HDB property. ECs are considered HDB properties during the first decade of ownership. As a result, they have certain rules and regulations. In particular, EC owners must live in their apartment for at least five years before they can sell it or rent it out. They can also only sell their ECs to Singapore citizens and permanent residents.
In addition, an EC is not eligible for HDB loans. This means that buyers must make a 5% down payment and wait for the HDB to approve the loan. This usually takes around four or five weeks. Once the HDB has approved the loan, they must obtain a bank loan to fund the The Myst remaining 5% of the purchase price.