With condo-like facilities and great architectural designs, Executive Condos (EC) is one of Singapore’s most popular homes. Some of us would call them “condos but built by HDB” — undoubtedly an over-simplified explanation of ECs. ECs are much more than that, and if you’re thinking of buying an upcoming EC in Singapore, you’ll want to really weigh out the pros and cons.
Here, we’ll discuss what ECs are and why they’re an excellent option for homeowners, especially in the long term.
What is an EC?
Unlike your usual HDB flats, ECs are developed and sold by private developers, but are subsidised by the government. This is why they have the look and features so similar to condos.
Since ECs have more facilities and more privacy than the regular HDB, they would be priced higher. These estates are targeted at middle-income Singaporeans whose household incomes exceed the ceiling cap for HDB flats.
EC properties are perfect for those who have an above-average income but still find condos and private housing too costly to maintain.
Let’s take a look at the key advantages of ECs in Singapore.
1. Executive condo eligibility for CPF housing grants
One aspect which distinctively sets ECs aside from condos is that they’re eligible for CPF housing grants.
Private properties such as condos and landed homes are not eligible for these grants; thus, they’re relatively more costly.
Since you can use your CPF and apply for housing grants, you can offset the cost of ECs significantly. Some housing grants you can look into include the family grant and half housing grant.
Here’s a table to provide more information on the housing grants you’re eligible for when getting an upcoming EC.
Family Grant
| Average gross monthly household income of all persons in the application, i.e. applicants and occupiers | Singapore Citizen (SC/SC) Household | SC/ Singapore Permanent Resident (SC/SPR) Household |
|---|---|---|
| $10,000 or lower | $30,000 | $20,000 |
| $10,001 to $11,000 | $20,000 | $10,000 |
| $11,001 to $12,000 | $10,000 | – |
| $12,001 to $14,000 | – | – |
Half Housing Grant
The half housing grant is only eligible if one of you is a first-timer (FT) SC and your co-applicant is a second-timer (ST) who has previously taken one housing subsidy, i.e. FT/ ST couple.
| Average gross monthly household income of all persons in the application, i.e. applicants and occupiers | Housing grant |
|---|---|
| $10,000 or lower | $15,000 |
| $10,001 to $11,000 | $10,000 |
| $11,001 to $12,000 | $5,000 |
| $12,001 to $14,000 | – |
Do note that there are some requirements you’ll need to meet to apply for these grants, though.
Firstly, you’ll need to meet income requirements. Those interested in applying for an EC must not have a household income exceeding $16,000.
Next, you must be a Singapore Citizen. If you’re a Singapore PR, you can only buy upcoming EC units if your spouse is a Singapore Citizen. Singles applying for an EC will need to use the Joint Singles Scheme.
Additionally, you must not own other properties overseas and locally. For more information, check out the HDB website.
2. Privatised from 11th year onwards
This is an aspect that sets ECs apart from condos and HDBs.
As an EC homeowner, you’ll have to fulfill the MOP of 5 years before the property can be sold in the open market to Singaporeans and PRs.
Once your EC has reached its 11th year, it is privatised and considered a private condo. And since you don’t need to meet income and citizenship criteria to purchase private properties, you’ll have a larger pool of buyers if you intend to sell off your EC.
You’ll attract higher-earning local and foreign homebuyers 11 years down the road, which would allow you to sell your home at a much higher price. Since you’ve bought your EC at a subsidised rate, you’ll get to earn more profits when your EC becomes a private home.
Find out how having over 20,000+ flats MOP in 2021 will affect the resale market here.
3. Condo-like facilities
ECs are developed by private developers and feature condo-like facilities such as swimming pools and gyms.
Besides being eligible for CPF housing grants, prices of ECs are on the whole 20% lower than condos. This means that by the time your EC is privatised, you essentially bought a condo that’s way below the market rate for private homes!
There’s quite a list of ECs being developed in 2021. An upcoming EC to look out for is the Fernvale Lane EC located just a 10-minute walk from Seletar Mall.
ECs are relatively accessible compared to private properties, which is a huge plus for families who have kids or dependents who don’t drive around.
Learn how you can upgrade from an HDB flat to an HDB Executive Condo (EC) here.
4. Upcoming EC: More spacious than condos
ECs generally tend to be more spacious than condos. EC units start from 2 bedroom units while condos start at 1 bedroom units.
Despite their apparent similarities, ECs target a pretty different market than condos. ECs target middle income local families starting their own families, while condos may target couples or families with no intention of having kids any time soon.
Seeing that most of us are working from home, it’d be a great idea to get a larger unit that can house your home office comfortably!
With amazing in-house facilities and great design, it’s not difficult to see why ECs are so popular among soon-to-be homeowners.
Not only do you get to enjoy condo-like facilities, but you also get to purchase your EC with CPF housing grants which are easy for Singaporeans to qualify for. If you’re a Singapore PR and want to buy an upcoming EC, do note that your spouse must be a Singapore Citizen. Otherwise, you’ll have to wait for the EC to be up on the resale market.
With so many upcoming ECs underway, be sure to keep a look out if you’re looking for a home for yourself and your family!
Learn how you can purchase a resale private property in Singapore with our 10-step guide.
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