Why EC?

Why do Executive Condominiums appeal to Buyers?

  • A status of achievement

  • Necessities within arms’ reach

  • Luxurious amenities to enjoy within the development

  • Greater upside for capital appreciation

Why are ECs cheaper than other Mass Market Condominiums?

  • Foreigners are not allowed to buy ECs directly from developers.

  • Income ceiling set at $12,000 and MSR of 30% set by the government. As such, EC developers are mindful of the affordability of the buyers who are eligible to purchase an EC.

  • Lower land costs (compared to mass market land sites). Prices for EC sites seem rather unaffected by the upward spiral of other private residential sites and have risen by a smaller margin. Over the past 2 year, bids have largely been range-bound between $300 and $350 psf per plot ration on average, which translates to an average selling price of between $730 to $800 pst (compared to $950 to $1,200 pst for mass market condominiums).

  • EC lands are mostly bidder by construction firms who are also developer. As such, there is no double layer profit between a developer n da construction firm.

Given these restrictions, ECs are typically priced t a discount compared to nearby private condos. In recent months, the demand of new ECs has, however, reached new highs, with units oversubscribed at launch.

Why are ECs Popular? A more in-depth analysis

  • Additional Buyer’s Stamp Duty (ABSD) is NOT applicable.

  • Seller’s Stamp Duty (SSD) is NOT applicable for EC as owners have to fulfill 5 years minimum occupation period (MOP).

  • Deferred payment is available. 20% down payment, 65% upon TOP and final 15% upon legal completion.

  • There is no restriction to invest in commercial/industrial property as long as there is no residential accommodation component in the commercial unit.

  • Improved design and features. EC developers are now offering more to attract buyers wishing to upgrade to a ‘subsidized’ private residential lifestyle living.

  • Great lifestyle (Enjoy the same lifestyle and facilities as other condominiums).

  • Possible CPF Housing Grant $20,000/$30,000 for 1st Timers.

  • Budget-friendly entry price (Lower quantum compared to mass market condominiums.

  • Comparable, or better potential future capital appreciation to condominiums (more likely to be sold at a good profit after MOP).

  • Can be sold under private property status after MOP of 5 years to Singapore Citizens and PRs, and to foreigners after 10 years – hence a larger pool of potential buyers.

  • Good potential rental yield as design and facilities are similar to any private condominiums.

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